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I am puzzled as to how Apple -- or especially Google -- are supposed to run their business given this: "The legislation aims to force them to allow third-party

I am puzzled as to how Apple -- or especially Google -- are supposed to run their business given this: "The legislation aims to force them to allow third-party app stores and payment systems as long as they are secure and protect user privacy." At present, Apple's model is based on a certain expected revenue per device that is a combination of some profit on the device and some profit due to apps. If the profit due to apps is reduced somehow, it stands to reason that profit on the device must go up -- in other words, the device must be sold for a higher price. Google does not always even sell the device and Android is open source -- the only revenue Google gets from many devices, apparently, is app sales. Maybe the margins of free-and-clear profit for Apple and Google are high enough that this really doesn't matter -- they'll still be able to cover whatever costs they formerly had with plenty left over to spare -- but even given that, I do wonder what the regulators think Apple and Google are going to do about a change like this. EDIT It seems like many people are taking the lead sentence ("I am puzzled as to how...") as expressing sympathy for Apple, Google and other large monopolies (one commenter writes "We shouldn't weep for monopolies."). This is not the focus I wanted to bring to the topic -- really it is more about how they will change, given that the old way of running their business will not work at the same rate of profit anymore. Maybe many commenters think that the rate of profit is high enough that nothing will change, &c. One commenter writes "Maybe by selling hardware?", but then I wonder, will Apple adjust prices upward? Maybe only in Japan? One commenter asks "Why should anyone be concerned with the well-being of Apple or Google?" and I would say, I'm not sure they should be; but it's worthwhile to be concerned about how they respond to this situation. I also wonder what the regulators thought about this problem -- how they modeled the tech giants' response.

echelon 3y ago
> I am puzzled as to how Apple -- or especially Google -- are supposed to run their business given this Maybe by selling hardware? Maybe by offering a better set of platform services than everyone else? Proper competition in a market full of alternatives. We shouldn't weep for monopolies. Especially given the smartphone is the most important invention and device of the century. They've managed to become central to every type of communication and commerce, and they're dominated by two companies. There should be intense competition for this space, not a steady state between two giants. These companies are obscene with the control they wield. They tax 30% of revenue, force you to use their payment and login rails, prevent you from having any sort of customer relationship of your own, let competitors place ads against your product (forcing you to pay even more), and don't even let you make your own technology choices or deploy when you want. They're not customer friendly either. They give children psychological issues about having the latest device and right color text bubbles. They don't let you self service, replace the battery, and brick themselves when you use third party components. These devices are essential for navigation, dating, hailing a ride, delivering food or items, ordering at or reserving a restaurant, performing many types of jobs, finding work, scheduling events, etc. etc. etc. It's almost impossible to live without one. And every action gets taxed and controlled by two companies. These two companies are heinous and this needs to immediately be opened up for competition from all sides. This is broader than Standard Oil even dreamed.
- echelon 3y ago
  Feels like a corporate clean up crew comes by these posts. I had a lot of upvotes, but now this has been downvoted below zero.
  - deleted 3y ago
    [deleted]
dominojab 3y ago
[dead]
TheLoafOfBread 3y ago
I mean, when I was buying something on Windows, it won't forced me to use Microsoft App Store. So why Google and Apple should be an exception?
- Eggpants 3y ago
  And when you were at Walmart, I’m sure you were also puzzled why there wasn’t a rent free Target store within the Walmart. Or when you were on the Xbox store, etc etc. The difference is Apple makes and spend all the R&D to make the hardware and the software. M$ just makes the toy OS and terrible laptops.
  - TheLoafOfBread 3y ago
    Bad analogy, because I can either be at Walmart (App store) or not exist at all (no sideloading, other stores) in case of Apple If this would be the case in the real world, FTC would be tearing such Walmart apart.
colechristensen 3y ago
Apple having a market cap of 3 trillion dollars… I mean, I think they’ll be ok. This is, in fact, a strong indicator that they do not need the protection of app store exclusivity.
deleted 3y ago
[deleted]
izzydata 3y ago
It's better for the consumer when businesses aren't near monopolies. Why should anyone be concerned with the well-being of Apple or Google? They have had a lot of time running their anti-competitive companies. I think they will be fine. Not to mention the US is incapable of enacting anti-trust laws the way it should so there will always be at least one country that will get exploited.
jncfhnb 3y ago
Apple can suck on the fact that software distribution is something that ought to be perfect competition with basically no profit margin and take the L.
bdcravens 3y ago
(Ignoring the fact that both companies are ridiculously huge before the first penny of app store revenue) - Apple makes a tremendous profit off of device sales. - While Android is free, Google charges licensing fees for Google Mobile Services (which includes Play Store, so perhaps companies could omit that, but I don't think that'll happen anytime soon)

echelon 3y ago

> I am puzzled as to how Apple -- or especially Google -- are supposed to run their business given this Maybe by selling hardware? Maybe by offering a better set of platform services than everyone else? Proper competition in a market full of alternatives. We shouldn't weep for monopolies. Especially given the smartphone is the most important invention and device of the century. They've managed to become central to every type of communication and commerce, and they're dominated by two companies. There should be intense competition for this space, not a steady state between two giants. These companies are obscene with the control they wield. They tax 30% of revenue, force you to use their payment and login rails, prevent you from having any sort of customer relationship of your own, let competitors place ads against your product (forcing you to pay even more), and don't even let you make your own technology choices or deploy when you want. They're not customer friendly either. They give children psychological issues about having the latest device and right color text bubbles. They don't let you self service, replace the battery, and brick themselves when you use third party components. These devices are essential for navigation, dating, hailing a ride, delivering food or items, ordering at or reserving a restaurant, performing many types of jobs, finding work, scheduling events, etc. etc. etc. It's almost impossible to live without one. And every action gets taxed and controlled by two companies. These two companies are heinous and this needs to immediately be opened up for competition from all sides. This is broader than Standard Oil even dreamed.

echelon 3y ago
Feels like a corporate clean up crew comes by these posts. I had a lot of upvotes, but now this has been downvoted below zero.
- deleted 3y ago
  [deleted]

dominojab 3y ago

[dead]

TheLoafOfBread 3y ago

I mean, when I was buying something on Windows, it won't forced me to use Microsoft App Store. So why Google and Apple should be an exception?

Eggpants 3y ago
And when you were at Walmart, I’m sure you were also puzzled why there wasn’t a rent free Target store within the Walmart. Or when you were on the Xbox store, etc etc. The difference is Apple makes and spend all the R&D to make the hardware and the software. M$ just makes the toy OS and terrible laptops.
- TheLoafOfBread 3y ago
  Bad analogy, because I can either be at Walmart (App store) or not exist at all (no sideloading, other stores) in case of Apple If this would be the case in the real world, FTC would be tearing such Walmart apart.

colechristensen 3y ago

Apple having a market cap of 3 trillion dollars… I mean, I think they’ll be ok. This is, in fact, a strong indicator that they do not need the protection of app store exclusivity.

deleted 3y ago

[deleted]

izzydata 3y ago

It's better for the consumer when businesses aren't near monopolies. Why should anyone be concerned with the well-being of Apple or Google? They have had a lot of time running their anti-competitive companies. I think they will be fine. Not to mention the US is incapable of enacting anti-trust laws the way it should so there will always be at least one country that will get exploited.

jncfhnb 3y ago

Apple can suck on the fact that software distribution is something that ought to be perfect competition with basically no profit margin and take the L.

bdcravens 3y ago

(Ignoring the fact that both companies are ridiculously huge before the first penny of app store revenue) - Apple makes a tremendous profit off of device sales. - While Android is free, Google charges licensing fees for Google Mobile Services (which includes Play Store, so perhaps companies could omit that, but I don't think that'll happen anytime soon)