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Businesses Apple

Apple's $85 Billion-a-Year Services Business Faces Legal Reckoning (ft.com) 150

Apple faces mounting regulatory scrutiny that threatens over $85 billion in annual services revenue. An antitrust trial against Google in the U.S. revealed multi-billion dollar payments to Apple to be the iPhone's default search engine. A plaintiff victory may halt the payments, estimated at one-quarter of Apple's services income. Meanwhile, Apple's App Store dominance draws Biden administration and EU oversight, with the EU enforcing changes. The landmark Google case and actions across Apple's two biggest markets represent growing legal and regulatory headwinds challenging the company's services growth strategy. FT adds: In the EU, Apple is preparing to allow "sideloading," which enables iPhone users to bypass its store and download apps from elsewhere. This will breach, for the first time, the walled-off ecosystem that the company has protected since Steve Jobs unveiled the iPhone in 2007. Apple has dragged its feet on this issue, since it maintains the practice will create security risks to its system.

Sideloading could have an impact on the App Store, where Apple charges developers as much as a 30 per cent fee on digital purchases. Games account for more than half of that revenue. Google's Play Store, which charges a similar fee, is also in the spotlight after it lost a landmark trial against Epic Games in California in December. Apple draws between $6bn and $7bn in commission fees from the App Store globally each quarter, according to Sensor Tower estimates. Competitors are pushing to earn some of that share and launch rival app stores and payment methods on Apple devices. Microsoft is talking to partners about launching its own mobile store.

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Apple's $85 Billion-a-Year Services Business Faces Legal Reckoning

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  • Freedom (Score:4, Insightful)

    by markdavis ( 642305 ) on Monday January 01, 2024 @10:47PM (#64123357)

    >"Apple has dragged its feet on this issue, since it maintains the practice will create security risks to its system."

    With freedom comes risk. You can't be safe and free, they are generally opposed.

    • by mjwx ( 966435 )

      >"Apple has dragged its feet on this issue, since it maintains the practice will create security risks to its system."

      With freedom comes risk. You can't be safe and free, they are generally opposed.

      Safety and freedom are not opposed, they can exist in harmony, the thing that makes this happen is responsibility. If we're responsible with the risky things in our lives, we can use them safely.

  • As if jailbreaks never existed.
  • by misnohmer ( 1636461 ) on Tuesday January 02, 2024 @03:30AM (#64123699)
    You will be able to sideload apps, but those who use the App Store will get access to proprietary libraries which will make iPhone integration a lot quicker and smoother. Any app not signed by App Store will not be able to access a bunch of very convenient helper libraries, which will offer things like mapping/GPS integration, Apple push notifications, and a bunch of other really useful functionality. Those will be free to use by anyone installing via App Store, not available to unsigned sideloaded apps. There will be nothing preventing the app developer to develop or license their own mapping library, but most developers will prefer to pay the fee in the App Store than licensing fees for libraries. Furthermore, a lot of paid libraries might not give a rats ass whether or not the app was free to download or not, they want a fee for every install. However with the App Store libraries, you only pay based on your own revenue. It will take a really large revenue app to justify writing all the app integration from scratch, then keep it up to date with latest iOS releases. Same thing will happen with payment systems, apps which ask for a credit card will see a much lower take rate than those integrated with the app store - people are lazy and don't trust some developer they haven't heard of to enter their credit card number into. It will be like web shopping, a myriad of payment methods. Someone who sees "$1 for a subscription" and has Apple Pay option to do a quick transaction is much more likely to pay that someone who has to enter their personal information and credit card into some form to subscribe, then never know how to cancel it. Having an easy to use, unified way to subscribe/unsubscribe does have its advantages.
  • by Petersko ( 564140 ) on Tuesday January 02, 2024 @05:11AM (#64123795)

    So what does Apple say when some nimrod lands in the forums and demands to know why their iPhone won't run some independently distributed app they've sideloaded? Or that it barfs because the model doesn't have an expected feature? The right answer would be to tell them to go pound sand... but it's not a friendly one.

    Like it or not, the walled garden does a good job about not offering you things that won't run on your device. And their rudimentary triage generally means nothing is tragically broken. Apple is protective for two reasons: the revenue stream (of course) and the perception that their devices perform cleanly and well. Having some shitty coder's app crash because package-445.76.6-RevA wasn't bundled wrecks that perception even though the fault is purely external.

    • by bn-7bc ( 909819 )
      You hit the nail on the head, and even worse, at least pr wise, if the main stream media ever reports it yi can bet your life the non tech savy reporters will blame apple no matter what because it helps ratings to hammer big tech even when they are clearly not at fault,but details are lost on the tech illiterate main stream anyway.

The most exciting phrase to hear in science, the one that heralds new discoveries, is not "Eureka!" (I found it!) but "That's funny ..." -- Isaac Asimov

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