Is Apple a Monopoly?
Why we should not be asking if a company is a monopoly, and what we should be focusing on instead. In Apple's case, it is their App Store dictatorship and control over users and developers.
By. Jacob
Edited: 2020-09-23 11:22
First and foremost, the question whether a given company is a monopoly is often misguided and negatively loaded; there can be good monopolies, and there can be bad monopolies. Therefor, the question — if based on the typical erroneous negative assumptions — becomes meaningless and a distraction from what people should be focusing on.
For example, both Apple and Microsoft can be considered monopolies in their own ways. But, their platforms are vastly different, and they are broadly targeting different user-bases.
We should instead be asking whether they are trying to control their own users, and if this control has negative consequences for users. Both companies do that to different extends. Microsoft is generally the nicer player, because they do not prevent users from installing software they want; but they do aggressively push certain software with misleading popup messages. One example is the recommendation that users should stop using Google Chrome and instead use Microsoft Edge, because, it is/was "faster" — as they put it..
Another problem is when proprietary software (usually closed source software) stops being supported; this will often leave a lot of users out in the cold, since the software may become difficult to install, or it can stop working entirely. I personally had a bad experience with this when Microsoft ditched their free e-mail clients — that is why I now use Thunderbird instead.
Apple's App Store monopoly
The problem I see with Apple is mainly their control over the App Store — which is a very negative and harmful use of a monopoly! Contrary to what is often claimed, this is actually not necessary in order to make the system more secure. We have Linux and Android as examples of "open" systems that are very secure, and also offer the users the freedom and control they want.
And let me just state that I am not against closed source — far from it — but I really dislike when a company is trying to prevent me from installing software that I need and use. Apple does not even allow browser developers to use their own engines, and they instead have to use Apple's own WebKit engine!
As an investor in both companies, and a hardcore nerd, the thing I dislike the most is how Apple rule the App Store like a evil dictatorship. They have the ability to prevent users from installing software they want, and even to revoke developers legitimate right to release software for Apple's platforms. The dispute with Epic Games shows us that Apple can not be trusted.
The funny part is that Tim Cook has made erroneous and stupid comments (businessinsider.com) about Facebook and their use of personal data, but he is trying to hide actual sins of his own company.
Again, as I have argued previously, the problems with Facebook is not as severe, since it had to do with unintended security issues — Apple's wrongdoings are intentional design decisions that both rob app developers and jail their users.
To get to my point: Apple is charging outrageous fees from developers in exchange of access to the App Store; as far as I know, the fee currently sits at 100$ per year, and an extra "tax" of about 30% of revenue that developers make on in-app purchases. This is money that Apple has no right to charge; they are basically just profiting on other people's work without offering anything in return.
Tell us what you think: