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0 pointsTheOtherHobbes6y ago0 comments

Apple is (allegedly) monopolising a market, which is not the same as skimming a percentage off transactions, and damages do not have to be estimated as a straightforward percentage of all transactions.

A monopoly has structural implications which could disadvantage both customers and developers in ways that go beyond paying x% Apple Tax on each sale.

For example - opportunity costs for both developers and customers, lock-in costs, costs to competitors who might have been able to operate a related market, specific losses for specific developers based on arbitrary, capricious, or self-serving app store exclusions, and so on.

None of this has been proven yet, all of it is debatable, and it could all be included in potential arguments.

This is bad news for Apple - not just because any judgement could be worth tens of billions, but because of potential bad PR and brand damage, which may happen however the final judgement goes. And also because of the distraction from more constructive goals.

0 comments

eridius6y ago

The problem with the "monopolizing a market" idea is the fact that "Apple devices" is not a meaningful market, and within the actual "smartphone" market Apple very clearly does not have a monopoly.

sjy6y ago

Although the US antitrust laws do use the language of monopoly, they are broadly drafted and have been subject to a lot of judicial interpretation. Rather than monopoly, when considering antitrust questions it is sometimes better to think about "market power and … whether business conduct has or likely will have anticompetitive effects." [1]

"Market definition is least useful when market shares would not be strongly probative of market power or anticompetitive effect, while direct evidence as to market power or anticompetitive effect is available and convincing." Apple's control of the App Store has a direct anticompetitive effect in the secondary market for iOS apps. This is pretty clear from the fact that Apple explicitly prohibits some apps that compete with its own. The interesting question is whether the plaintiffs will succeed in proving that Apple's conduct is illegal, under the prevailing interpretation of the US antitrust laws.

[1]: Market definition: an analytical overview (2007). https://digitalcommons.wcl.american.edu/cgi/viewcontent.cgi?...

Mirioron6y ago

Why is "Apple devices" not a separate market when it comes to apps? Apps made for Apple devices can't be used on other devices without changes.

eridius6y ago

Many apps are available exactly the same on Android as well, and nearly all apps have at least some equivalent on Android. The fact that an iOS app isn't literally compatible with Android, you can't take the exact same binary and use it on an Android phone, doesn't mean that iOS is a separate market category. You may as well say that UPPAbaby strollers are their own market category because UPPAbaby stroller accessories don't work on other strollers.

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gowld6y ago

It's the app market for iPhone users.

inlined6y ago

And notably Apple locks out some companies from the same kind of integrations that 1P apps get. The only use I have for Safari is that it’s the browser most apps open. And Apple won’t release Siri actions for music, putting Spotify at a big disadvantage.

eridius6y ago

"iPhone users" isn't a general market category.

j / k navigate · click thread line to collapse

0 pointsTheOtherHobbes6y ago0 comments

A monopoly has structural implications which could disadvantage both customers and developers in ways that go beyond paying x% Apple Tax on each sale.

None of this has been proven yet, all of it is debatable, and it could all be included in potential arguments.

0 comments

eridius6y ago

The problem with the "monopolizing a market" idea is the fact that "Apple devices" is not a meaningful market, and within the actual "smartphone" market Apple very clearly does not have a monopoly.

sjy6y ago

[1]: Market definition: an analytical overview (2007). https://digitalcommons.wcl.american.edu/cgi/viewcontent.cgi?...

Mirioron6y ago

Why is "Apple devices" not a separate market when it comes to apps? Apps made for Apple devices can't be used on other devices without changes.

eridius6y ago

1 more reply

gowld6y ago

It's the app market for iPhone users.

inlined6y ago

eridius6y ago

"iPhone users" isn't a general market category.

j / k navigate · click thread line to collapse