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I don’t see how willingly deciding to use a closed platform and criticizing it for not being open and then asking the platform to open up affecting everyone else who also decided to use a close platform is logical.



The situation is that there's healthy competition between phone makers (Apple and Google/samsung/etc). If there was only one company making phones, that would be a monopoly and monopolies tend toward rent seeking extraction - which may require regulation, or consumers would have a bad time.

Apple has a clear, technologically enforced, complete monopoly on apps distributed on their phones. And google has a weak monopoly on their phones - you can distribute your app on other app stores, but its difficult for everyone. The situation on Android is slightly worse than Microsoft distributing IE with windows. And when that happened, the feds initiated a huge antitrust case against microsoft and nearly broke up the company.

Does the fact that there's competition in the phone market mean we should forgive monopolistic behaviour in the app markets on those phones? Thats a tricky question. Its too simple to just fall back on heuristics.

Is there monopolistic behaviour in the app market?

- Does the monopolistic provider use their position to block competition? Yes. Apple doesn't allow any competitors to their own software in the app store.

- Does the monopolistic provider rent seek, and extract far more money from the market than they would if there was healthy competition? Uncertain - I'm not sure if 15% is a reasonable or unreasonable cut. 30% almost certainly wasn't reasonable for the services apple provided.

- Do people buy phones mostly because of their app stores? If they do, then phone competition == app store competition. If they primarily choose a phone on other factors (cameras, etc) then these are separate markets and should be considered separately. Answer: ???

Is there a precedent? Its not exactly the same, but Australia didn't like telstra (an ISP who owned most of the cable at the time) renting their cables at unreasonable prices to other ISPs. They stopped anyone else from reasonably competing with them. You could make the same argument - "You willingly bought a house there so you can't complain. If you don't like it, move". But we regulated them anyway. Notably the US hasn't regulated comcast / etc from doing the same thing over there.

Longer answer than you were expecting. tldr; its complicated. Heuristics aren't enough. Personally I don't think competition in phones means its acceptable that we have monopolies in app stores. I find the justifications for letting apple have a monopoly in the app store unconvincing and I favor regulation.




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