Re:Apple removes Fortnite from App Store after Epic attempts...
by umvi on Thursday August 13, 2020 @03:55PM
(#24147821)
> You tend to see it with gasoline pricing as well - all the major companies have nearly identical prices.
Yeah because otherwise you make no money on gas. If I undercut the store across the street by a penny, they will then immediately match me or undercut by a penny. Pretty soon, we are at the break-even point and can't go lower without losing money. That's not tacit collusion, that's just a race to the bottom.
There's a big difference between all major app stores taking 30% every time money changes hands, and a race-to-the-bottom industry like milk or gasoline. Try starting a dairy farm - I think you'll find you won't be able to price your milk lower than your competition, and as a result your milk will be the same price everyone else's has been for the past 50 years - ~$2-3/gallon.
Yeah because otherwise you make no money on gas. If I undercut the store across the street by a penny, they will then immediately match me or undercut by a penny. Pretty soon, we are at the break-even point and can't go lower without losing money. That's not tacit collusion, that's just a race to the bottom.
There's a big difference between all major app stores taking 30% every time money changes hands, and a race-to-the-bottom industry like milk or gasoline. Try starting a dairy farm - I think you'll find you won't be able to price your milk lower than your competition, and as a result your milk will be the same price everyone else's has been for the past 50 years - ~$2-3/gallon.