Comment by oneplane | Hacker News Reader

Comment by oneplane | Hacker News Reader

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While I agree that the percentage that Apple takes per sale is too high, I completely disagree with the term 'vendor Tax'. While it's fine as a fun synonym, it's problematic as soon as people start to think about it as an actual Tax. It's not a Tax, it's the amount of money the vendor/platform owner wants to make for every sale. You can opt-out (by not being on the platform, still a choice!) if you want to. But because it's bad for the bottom-line of most companies to do so, they position themselves as a sad little broken bird that gets stomped around by the big bad corp. Newsflash: they all are generic money making capitalistic institutions that on the business side exclusively exist to make money. For profit. For doing things, any thing, to make money. That goes for Spotify and Apple just the same.

On the side of 'level playing field' they do of course still have a point, just like all the anti-trust stuff we had/have with Microsoft and Google. It does make me wonder a bit why this hasn't been involving other companies like Amazon and Facebook. (or, why it hasn't been suggested as widely as it is now)

I do wonder about the technical aspect of those store denials and watchOS problems; other streaming services do not face the same issues/pressue, so what makes spotify so special? They app is a bit crappy (it's not very good at maintaining/restoring state and doesn't have the most consistent UI), but other than that, it doesn't do much different things when compared to others (like Deezer or Tidal). Putting it as a "Apple Music vs. Spotify" thing is a bit weird too; while it might make sense, it doesn't make sense if it's just that and all the other streaming and buying services are free to do what they want. It's weird stuff.

> Putting it as a "Apple Music vs. Spotify" thing is a bit weird too; while it might make sense, it doesn't make sense if it's just that and all the other streaming and buying services are free to do what they want. It's weird stuff.

Isn't Spotify just the biggest one by a large margin?

Because frankly I never heard of Deezer or Tidal, and everyone I know that uses a music streaming service is on Spotify or, rarely, iTunes (or Apple Music? is that a rebrand or is it a new thing?)

> It's not a Tax, it's the amount of money the vendor/platform owner wants to make for every sale. You can opt-out (by not being on the platform, still a choice!) if you want to.

And I can opt out of selling things in Idaho if I don't want to pay their sales tax. I don't understand the distinction you're making at all.

If you don't sell in Idaho, you lose that market. If you don't sell on Apple's platform, you lose that market. The issue is a combination of the "tax" and the market dominance of these two companies.

...okay? I'm asking why oneplane completely disagrees with using the word "tax" here.

It kinda applies, depending.

If you consider the Appstore/iOS ecosystem to be Apple's "land", then sure that 30% is like the tax for having a presence in that land.

That's the classic meaning of "tax".

However, nowadays, in most civilised countries we expect more of "tax". We expect it to not simply flow to whoever holds power over the land (ecosystem), for them to use for profit, projecting power and keeping it. We expect the tax instead to largely be invested in things that benefit the people paying it (users). In fact, the more this happens, instead of going to the rulers, the nicer a place to live (in general).

Now one the one hand Apple is doing a pretty good job with things that benefit the users: they get security and some privacy. On the other hand, as a tax, it's fair to ask whether that 30% is really necessary for these benefits or just for lining Apple's pockets. An additional thing, looking at it pragmatically, whatever Apple's doing to Spotify doesn't seem to be in the user's benefit at all. But then, they don't pay tax. So that points to the 30% being significantly more than the tax required to benefit the users.

It seems to me that Apple should lower this tax to a rate that Spotify is willing to pay and put up with.

Thing is, Apple is not really like a modern government to its users. They are a "if you don't like it, just leave"-ocracy. So when they put up a "public" service (Apple Music), that undercuts commercial services (Spotify), it is NOT in the benefit of the people (users) like a public transport system would be. This is because the undercutting is purely based on the tax-cut, not because it's more efficient to do it as a public service rather than a commercial one.

Using the word 'tax' here is like calling anything that you need to pay for 'tax'. If you put a bit of money in a vending machine to buy some chocolate, you don't call that vending machine tax, do you?

If you were to scope it to 'services' or 'platform', then perhaps we should call virtual hosting cost not cost but tax :p and if you rent a movie, that'd then be movie tax, or rental tax? But what about actual tax, are we going to call that tax tax? Because at this point people just start using the word tax for every generic transaction.

In your vending machine example, it is a transaction, not a tax, as you implied and I agree. However Apple taking cut of app's revenue is awfully a lot like corporate tax.

In that case are transaction fees for credit cards also tax? Or PayPal fees for that matter? Or fees for using platforms like eBay and Aliexpress?

Yes, I'd call any small mostly-percentage-based transaction fee that a platform imposes a "tax" or "platform tax".

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