Re:EU says Apple’s App Store breaks competition rules after ...
by w0m on Monday May 03, 2021 @09:11AM
(#27024586)
That ignores the 'operate at a loss to kill competition then jack up prices/lower quality' strategy that the EU is directly trying to fight here. It's a common trope; Monopolies are great for the consumer; until they aren't held accountable.
Re:EU says Apple’s App Store breaks competition rules after ...
by LaMarseillaise on Tuesday May 04, 2021 @02:55PM
(#27041412)
Imagine that Apple charges a 0% fee. They could still undercut the pricing of Spotify, using their vast resources, and accomplish the same.
I think this does not account for the opportunity cost. If Apple Music competes with Spotify, then Apple Music implicitly pays the 30% fee of the next best alternative. If Spotify operates at a loss with the fee, and Apple Music is otherwise an identical business, then Apple should prefer Spotify - it makes more money this way. The fee is basically irrelevant.