Does Google charge a .50 per install fee for Android apps not installed via the Play Store? Does Microsoft charge a .50 per install fee for Windows apps not installed via the Windows Store? Apple is just making these charges up, because they think they can get away with it. It doesn't cover any real costs to Apple, above and beyond what you already pay for when you buy an Apple device.
I am wondering how the EU market will react. How many businesses in the EU have free apps that have more than 1 million users? Will businesses start charging for their apps in the EU just to recover the cost, or pull out entirely? Maybe more will offer fully featured websites and drive customers there instead. I don't know, but it seems like a stupid move on Apples part, a big game of chicken.
Is an app like eBay free in your definition? Because then you have Allegro, which is giant here in Poland. Apps from telcos. Public transit apps. InPost over here is quite big in deliveries. I think Alza in Czechia and Slovakia can easily have a couple million users.
Not very many businesses, but there are quite a few biiig ones.
Here on HN I often read startup stories about services which, on one hand, “nobody” has heard about, and which, on the other hand, “quickly grew to a couple million users and started having scalability problems”, which then spawns some story about scalability tricks. Always leaves me astonished as to how the heck some another glorified todo list/cat picture thing can rake millions of users so fast, but here we are.
I suspect there are way more niches in which tens of millions of users live, which the rest of us can just be ignorant of. It’s only when you approach a billion users that you can be sure “everyone” at least has heard the name of the service/app.
eBay is a great example for this case, yes. It would be very easy for ebay to stop distributing an iOS app in the EU, and instead push those users to using the ebay web app. Ebay could put more resources into making the webapp better, and avoid paying Apple a ridiculous annaul per installation charge.
But the thing is, the free apps can also just use the pre-existing distribution mechanisms. Of course, it's giving Apple the leverage to say, "see? No one* wants to use the alternative stores!", but also think that if you have an entire team with experience and established relationship of App Store review shenanigans, you just continue to use it.
It's more interesting about the upstart companies who might get big one day.
There a free apps that don't exist on iOS simply because Apple doesn't want them in their store. These apps are not necessarily malicious, but may contain content that Apple wishes to censor. If Apple continue to say what is and is not allowed on iOS, then nothing/not much is gained by this regulation.
Edit: Of course, eBay will likely continue to be allowed.
I wasn't aware that there was a choice for EU developers to use the new pricing model or the old one? If free apps can stick to the "30% of nothing" commission, yeah, I suppose most will do that.
As threeseed mentioned, most free apps esp. those without a per-install revenue source (e.g., Wikipedia) will likely not use the new model and stick with the old model which doesn't charge per app install
I suppose ultimately, the market is fragmenting and Apple is aiming to pull and set levels to encourage as many developers as possible to stick with the current system.
I suppose they're counting on the fact that inertia and laziness will encourage continued loyalty when it comes to non free apps.
Right I agree, the new model does seem quite punitive especially if you don't have an existing business model.
Imagine a new developer publishes a free app without a plan for monetization, and then it goes viral. They would be on the hook for thousands of dollars.
Unless they have a reason to switch most new apps will likely stick to the old model
> Does Google charge a .50 per install fee for Android apps not installed via the Play Store?
Give it about a month, and I'd guess so.
> Apple is just making these charges up, because they think they can get away with it.
Yes, with my non-existent MBA I assumed that's how most businesses set prices?
Business are not your friend, they're looking out for themselves only. This is why I do actually like governments: they can force businesses to be more aligned with public interests, even when that costs shareholders some dividends.
More fees can make them more money, but if they raise it too high developers will stop developing for the platform. It's up to Apple to decide on the right trade off where they make money and have a competitive platform to Android and Windows.
This applies similarly to many other businesses. There is a sweet spot for prices to maximize profit.
