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I think, cynically, this will drive most users from apps to Reddit's own site/app where they can serve ads and do invasive tracking. So, long-term, Reddit gets what it wants.

I doubt enough people care enough to stay off Reddit because Apollo is shut down. (I aways think about how the "nudie scanner" revolts fizzled to a whimper in the end--and how people now just put up with doing the perp stance and being mm wave scanned.)

One way out would be for Reddit to enforce certain restrictions on 3rd party app, similar to Apple's App Store. "You must show ads", for example.

Third party apps don't show ads. The official app does. Therefore, if they funnel third party users to the official app, they can show more ads and make more money. You may not like it but that's the thinking they have.

It doesn't kill of 3rd party Apps, it just requires them to do a minimum amount of monetisation.

The pricing is actually reasonable. 1/4the of Twitters price.