Apple has immense discretion here, of course. But a punitive enforcement action with potentially large spillover effects, in impairing other apps, is being discussed.

Whether that's considered justified, and even whether such an action might create a legal/antitrust liability for Apple, could depend on the actual terms/definitions Apple provided.

In the long run, Apple can adjust their terms subject only to a few legal and market checks. But in the short term, Apple should respect the terms they've offered, contractually, to other entities.

I don't think antitrust is relevant in this case, because Apple doesn't have a monopoly in smartphones. In fact, if anyone does, it's Google, since Android accounts for 75% of mobile phones worldwide [1].

[1]: http://gs.statcounter.com/os-market-share/mobile/worldwide

Antitrust enforcement doesn't require an absolute monopoly, just abuse of market power in anti-competitive ways.

Further, Apple has a 100% monopoly control of the iOS App Store.

True, kind of — it depends on the definition of “market power.” There is a dominant market share test used by the courts, generally a market share over 50% is required while some courts require a much higher percentage.

Here is the better explanation from the FTC:

https://www.ftc.gov/tips-advice/competition-guidance/guide-a...

> Further, Apple has a 100% monopoly control of the iOS App Store.

That irrelevant. Best Buy also has a 100% monopoly control of Best Buy stores. That doesn’t mean that Best Buy has a monopoly on consumer electronics stores, nor does Apple have a monopoly for computer app stores.

True, Apple does have a monopoly when it comes to the iOS App Store.. but no more of a monopoly than Baskin Robbins has for ice cream sold by Baskin Robbins. That doesn’t mean you can’t by non-Baskin Robbins ice cream somewhere else, nor does it require Baskin Robbins to sell Hagen-Daz. If you want to be a sell your stuff at a store, you have to follow the rules of that store and pay the commission. Just like there are other places to buy computer software for a mobile device, there are other places to buy ice cream.

There are much greater implications for consumer welfare, and competition across many tech/service/product markets, in App Store control than in branded ice cream.