When you’re one of only two games in town – you get to make up a LOT of rules as you go along…
And while Apple (AAPL) didn’t invent the smartphone – there’s no denying that it definitely kicked the industry into overdrive when it released its wildly successful iPhone.
Before the iPhone – there were all kinds of choices: Blackberries, Nokia flip phones, Motorola and its two way radio versions…
But the iPhone and its largest competition – Samsung – create a two horse race, as many of the companies that were around before fell by the wayside.
That being the case, Apple thought it could not only make the rules – but enforce them as they saw fit. Too bad it forgot it was headquartered in America – where there are laws that prevent anti-competition practices…
And a lawsuit filed by app developers just proved that.
America is one of the most litigious nations on the planet…
You can sue anybody for anything in this country – even for the most frivolous of reasons.
You don’t like the way your neighbor keeps his property? You can sue him for damages – as you could claim their carelessness (well… PERCIEVED carelessness) was driving down the property value of their home.
While this litigiousness could be viewed as a “bad” thing…
It can also be a very good thing – as there are plenty of people that were able to get a measure of justice by taking somebody to court and getting their comeuppance.
Apple is finding this out the hard way…
As app developers have just dropped a bomb on them.
The computer giant announced today that it’s making broad changes to App Store rules in an attempt to settle a class-action lawsuit filed by American app developers…
As they are alleging that Apple uses its position as one of the only games in town by taking part in anticompetitive behavior.
What kind of behavior?
Oh…
Well, on top of the 15% – 30% App Store “tax” the company charges every developer – Apple also forbids companies from letting customers know about cheaper payment and subscription options outside of the App Store.
Apple says it does this to provide safety and security to App Store users…
But we know this isn’t the case, don’t we?
There is an even more OBVIOUS reason why Apple doesn’t allow cheaper payment or subscription options outside of its umbrella…
And it’s simply due to the fact that the company wants to grab as much cash from this revenue stream as possible.
Not surprisingly…
Apple’s App Store changes address the EXACT same issue that’s in the developers’ lawsuit.
The company said it would now allow developers to advertise other payment methods for services offered through its apps…
Just not within the apps themselves.
Developers will now be allowed to email users about how to get around Apple’s payment systems…
As if anybody reads emails from their apps nowadays.
These things will most likely get deleted rather than opened, read and taken advantage of.
Apple said it would also pay $100 million to developers as part of the settlement…
But we all know that’s BARELY a drop in the bucket for Apple – however, it does let you know that the company is worried about how much it would ultimately cost if it did go to court and lost.
A lawyer for one of the developers, Steve Berman, called the settlement “hard-won” and said it would benefit American based iOS developers…
But in a statement by Meghan DiMuzio of the Coalition for App Fairness – she called the offer from Apple nothing but a “sham settlement.”
And she may be right…
Winning the “privilege” of emailing your own customers about your own apps doesn’t really feel like a “hard-won” victory – it sounds patronizing.
However, other lawsuits that Apple is embattled with, such as the one by Epic Games, could use this “victory” as fuel for its own cases…
As Apple gets its power trip under control.
The good news is that the settlement announcement hasn’t affected investor confidence in Apple – as the stock initially ROSE on the news….
Which is another sign that the settlement is more in Apple’s favor than for the App developers.
Oh, well, that’s business for you.
Some people may have sold on this news – which would have been a bad idea. It’s those kinds of knee-jerk reactions that inspired me to create GorillaTrades in the first place.
No emotional decisions necessary – we give you the buy/sell information ALL based on actual data and numbers…
Not rumor or speculation.
We’d love to have you on board for the next round – but totally understand if it’s not your style.
Regardless, don’t fret about Apple – they know what they’re doing.
“A lawsuit is the suicide of time.” – Thomas Edison
