Apple’s Walled Garden Is Crumbling
If there’s any modern company in tech that has promoted a more closed-off ecosystem than Apple, then I’ve never heard of them. Apple’s walled garden approach has paid off handsomely for them, by not only attracting users to stick with their products but almost forcing them to stay in the ecosystem once they’re in.
That approach shows when it comes to their App Store too. Unlike Android, there’s only one place to download apps for iOS as a regular user and this means that Apple has full control over the market that they’ve created. In particular, on paid apps and in-app purchases, the Cupertino company has given themselves up to a 30% cut of the pie from hard-working developers. It’s exactly this that has led over 1,500 app developers in the UK to file a $1 billion lawsuit against the company.
Initially, Apple tried to get the lawsuit dismissed, but that didn’t work out for them as a UK court has given the green light for the case to proceed. Obviously, the only reason the company had the balls for a move like this was because of its position at the top of the food chain, which it is clearly abusing. However, they have time to come up with a strategy as this lawsuit isn’t expected to be brought to trial before next year.
Still on abuse of power, I’m not just saying this as a personal opinion, because that’s the exact reason why Apple is under heat from the European Union and the US DOJ. The company has now been told to allow users, at least in the EU, to have the option of downloading apps for their iPhones and iOS devices from other sources, similar to what Android has had in place for years on end.
How Might This Affect Apple As A Company?
Apple is being forced to make a lot of changes that go against the business model that they’ve had in place since the birth of the iPhone, and with exclusivity slowly being ripped away from them, it makes me wonder, will this hurt or harm the brand?
I don’t know what the net result will be, but I do think some aspects will bring more users in, as the platform will finally have more choices. For instance, finally allowing for RCS messaging and new app stores. However, at the same time, I do feel like breaking down Apple’s walls will finally allow people who have felt “trapped” in the ecosystem to breathe fresh air and explore other options.
The European Union Will Be Remembered As A Catalyst For Change
The European Union used its power to get Apple to do what was previously thought to be unthinkable, and that was to finally ditch the Lightning connector on iPhones and move to USB-C. However, things aren’t going to end there, or with Apple alone either.
The EU’s Digital Markets Act is pushing hard against Apple and Alphabet, among others, to force them to make changes that give smaller companies more of a fighting chance in the market. Most of these changes won’t affect the core functionality of our favorite platforms but will offer users more choices, which is hard to say no to. Regardless, the EU has caused and will cause some of the biggest tech shakeups in modern times, and as long as it makes things better for the consumers, I’m here for it.
