Why Apple's New Prices Might Not Be Sinister – Knowligent
Why Apple's New Prices Might Not Be Sinister

Why Apple's New Prices Might Not Be Sinister

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Some experts see Apple's decision to cut prices as an attempt to avoid accusations of monopoly power, but others say it's more likely a simple business maneuver.

This is why people love Apple so much…. #Shorts

Apple's decision to slash commission from 30% to 15% for developers with annual revenue of $1 million or less, seen as a reprieve for smaller developers struggling with the impact of the coronavirus pandemic, has come under fire from larger developers, who see the move as an attempt to stifle competition by saving face as the company continues to take a 30% commission from the largest developers on the App Store.

“This would be something to celebrate, if it weren’t a calculated move by Apple to divide app makers and maintain their monopoly on stores and payments, once again breaking their promise to treat all developers equally,” Epic Games CEO Tim Sweeney said in a statement. “By giving special 15% terms to select robber barons like Amazon, and now small indies, Apple hopes to remove enough critics so they can get away with blocking the competition.”

Sweeney wasn’t the only one to criticize Apple’s decision to cut prices for certain developers. Executives from other major companies that are part of the Coalition for App Fairness also had some kind words for the Silicon Valley company, namely, a rebuke of its decision to dabble in multiple sectors, such as television and music streaming (App TV+ and Apple Music), while having the ability to set prices for its competitors and take an additional cut if they grow too large and exceed the $1 million revenue threshold.