Apple forces companies that operate within its App Store to process their payments through its platform
In this system, almost all your allies must give a commission of 30 percent of the value of the transaction
However, companies like Amazon, Airbnb, and some taxi platforms get discounts or don’t pay the fare.
Often business relationships between companies may not always be friendly. This is especially true in the case of certain preponderant agents that seem to have almost absolute control over some markets. And it is that, in these circumstances, there is no other option for the commercial allies than to adjust to the conditions that the industry leader commands, even if they are unfair. This is precisely the situation of many Apple allies.
At least so indicates a new report from .. Yesterday, the European Union (EU) launched two investigations against Tim Cook’s company to investigate both its App Store and its financial transactions unit, Apple Play. This, as a result of complaints from allies such as Spotify that the company forces its partners to adjust to a payment system that usually benefits the brand and affects consumers. And the streaming platform is not alone.
A few hours ago both Match Group, owners of popular dating apps like Tinder and Hinge, and Epic Games, the studio behind Fortnite, backed Spotify’s allegations. In an official statement and a tweet from its CEO, respectively, they acknowledged that Apple sets unfair rules for its business allies, unfairly benefiting its services. In a statement to ., the tech said the EU charges are unfounded.
Here Apple speaks of a level playing field. To me, this means: All iOS developers are free to process payments directly, all users are free to install software from any source. In this endeavor, Epic won’t seek nor accept a special deal just for ourselves.https: //t.co/A4sT1eMKMm
– Tim Sweeney (@TimSweeneyEpic) June 17, 2020
New problems for Apple
In the case of large technology companies, complaints about anti-competitive practices are daily bread. Like Apple, Google received a lawsuit in the United States (USA) for the creation of an alleged advertising monopoly. Amazon is also under the scrutiny of the authorities in Washington for allegedly using the information of its sellers for their benefit. Even Facebook could lose Giphy to these fears in the UK.
Admittedly, Apple’s situation is very difficult. It is one thing for the EU authorities, which are strict in themselves, to have launched legal proceedings against his company. But something very different is that their own commercial allies fan against them to demand a fairer ecosystem. Spotify, although it is a leader in its segment, was a single brand. Now with Epic and Match, more agents of all sizes could get motivated and join.
What can Apple do to get out of this problem? First, it will be necessary to follow the process set by the EU and try to comply with all requests made by the authorities. Otherwise, you could be in even more trouble than a simple anti-competitive investigation. But it would also be worthwhile to talk to your business partners, find inconvenience, and design solutions to get ahead of any verdict.
Fighting a common enemy
Apple is also not the first company that motivates its rivals (or in this case, very annoying partners) to join forces to try to defeat it. In 2017, companies like Netflix and HBO formed a front to combat piracy that affects the video content industry. At the time, Microsoft and Walmart decided to join forces to go against Amazon. For their part, AT&T and Google set out to sign an agreement and thus beat China’s Huawei.
Why is it necessary that, when fighting agents as big as Apple, the rivals add their respective strengths? According to PSMJ, a strategic agreement allows each of the agents to complement their strengths and weaknesses with those of the other party. For its part, Reference for Business ensures that this reduces costs and risks significantly. And the IFA points out that brand recognition tends to add up and increase.
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