“You Are Indebted: The Due Percentage According to My Word”

Apple’s response to being required to allow developers to lever payment options apart from its in-house system is drawing a bevy of negative commentary from tech folks. And with good reason: Apple is offering little and demanding much, ensuring that it can continue to demand a massive cut of developer revenue. The reduction in demands constitutes a full 3% reduction from its existing 30% fee charged to payments that occur inside of its App Store system. Simply put, Apple is trying to offer developers what it has to, but with enough costs attached to make it economically unpalatable. Eric Seufert of Heracles Capital, described Apple’s posture as “heads I win, tails you lose,” which feels pretty accurate.

Apple’s response to the mandatory allowance of developers to utilize payment options outside of their App Store has been met with disdain from the tech community. Their actions have rightfully caused negative backlash as their demands far outweigh the little they are actually offering. It’s a clear indication that Apple is more concerned with maintaining their high cut of developer revenue than promoting fairness within their app marketplace.

Apple and Epic Games both filed an appeal against a previous verdict in favor of Apple but still required them to allow developers to redirect users to external websites for payments instead of keeping them confined to the App Store. Despite the Supreme Court refusing to intervene, Apple had no choice but to comply and make it possible for developers to charge users without using Apple’s existing systems.

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Unfortunately, Apple’s response leaves much to be desired. They have only reduced their demands by 3%, going from a 30% cut to 27% for payments made outside of the App Store. In essence, even if a user leaves Apple’s tightly controlled platform and makes a purchase from a different service that can be used within an app, Apple is still expecting a portion of the profits as long as the transaction occurs within a week.

Eric Seufert of Heracles Capital accurately described Apple’s actions as “heads I win, tails you lose,” highlighting the unbalanced nature of their offer to developers.

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Max Chen

Max Chen is an AI expert and journalist with a focus on the ethical and societal implications of emerging technologies. He has a background in computer science and is known for his clear and concise writing on complex technical topics. He has also written extensively on the potential risks and benefits of AI, and is a frequent speaker on the subject at industry conferences and events.

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