I mean sure, you’re getting really deep and philosophical on economics here. I’m happy to have that conversation too, but I think it’s a different conversation, and one we should have over some beers :)
I’m not sure how you took it as far as me arguing against free markets, but I was just trying to speak of my perception of this very specific example.
I don’t think it’s fair for them to take 3/10ths of every business on their app stores. That simple. I don’t think the markets think it’s fair either, but they don’t have much choice. At least not on Apple’s platform.
I don’t think the government should ever set the prices by default, but if the market and the government decide it’s not fair then they can step in. That’s the whole point of anti-trust laws.
Of course businesses have the right to make a profit. I did mention the system I proposed could cover their costs and make some profit.
Sorry if I wasn’t clear on that. They should make profit on the app stores. But the current model is particularly offensive to me. I don’t think there is a magic number. I think the idea that all monetary transactions have to go through them and they get a percentage at all is dumb. At it’s heart app stores are just a means of distributing software. Why should they get a cut of the businesses?
Maybe we could compare it to credit card transactions. The card reader networks take a 3% cut and we’re all ok with that. They provide the infrastructure to allow the transactions to happen, sure I guess they earned it. If you forced me to pick a ‘magic’ number then I would say it should be similar to that.
If Google and Apple took 3-5% none of this would even be a discussion. We probably wouldn’t even care enough to fight it, and they’d still be making money hand over fist on their app stores.
Which to be fair aren’t even the main part of their business. It’s just a side huddle for them. But 30% is the kind of cut title loans and pawn brokers take. No way in hell that’s reasonable for a service to distribute software.
I’ve got a lot more thoughts on this, especially about the differences between Google and Apple in this regard, but I’ll stop there. I’ve ranted enough tonight:)
> The card reader networks take a 3% cut and we’re all ok with that.
EU busted that, so in EU it is illegal to take more than a 0.3% cut instead. Because after investigations that was roughly how much they need to be profitable. The 3% fee you see in USA is just 1000% markup.
Although I wouldn't be surprised if app store fees are found to be reasonable at about 3% level and EU enforcing that, just like they lowered credit card fees by a factor 10.
I’m not sure how you took it as far as me arguing against free markets, but I was just trying to speak of my perception of this very specific example.
I don’t think it’s fair for them to take 3/10ths of every business on their app stores. That simple. I don’t think the markets think it’s fair either, but they don’t have much choice. At least not on Apple’s platform.
I don’t think the government should ever set the prices by default, but if the market and the government decide it’s not fair then they can step in. That’s the whole point of anti-trust laws.
Of course businesses have the right to make a profit. I did mention the system I proposed could cover their costs and make some profit.
Sorry if I wasn’t clear on that. They should make profit on the app stores. But the current model is particularly offensive to me. I don’t think there is a magic number. I think the idea that all monetary transactions have to go through them and they get a percentage at all is dumb. At it’s heart app stores are just a means of distributing software. Why should they get a cut of the businesses?
Maybe we could compare it to credit card transactions. The card reader networks take a 3% cut and we’re all ok with that. They provide the infrastructure to allow the transactions to happen, sure I guess they earned it. If you forced me to pick a ‘magic’ number then I would say it should be similar to that.
If Google and Apple took 3-5% none of this would even be a discussion. We probably wouldn’t even care enough to fight it, and they’d still be making money hand over fist on their app stores.
Which to be fair aren’t even the main part of their business. It’s just a side huddle for them. But 30% is the kind of cut title loans and pawn brokers take. No way in hell that’s reasonable for a service to distribute software.
I’ve got a lot more thoughts on this, especially about the differences between Google and Apple in this regard, but I’ll stop there. I’ve ranted enough tonight:)