★ The EU’s Share of Apple’s Global Revenue
https://daringfireball.net/2024/03/eu_share_of_apples_revenue
The EU’s Share of Apple’s Global Revenue

The DMA allows the EC to penalize “gatekeepers” with fines that are vastly disproportionate to the amount of revenue they generate in EU member states.

Daring Fireball

@daringfireball
@jann

Yes. Finally.

I’ve been wondering when people would start mainstreaming the idea that (maybe) Apple *should* pull out of the idiotic EU. It’s not worth 7%.

Stupid (and also, politically motivated & excessively punitive) regulation *should* have consequences.

https://mastodon.social/@daringfireball/112163676624488247

@daringfireball @jann

And to be clear, this isn’t out of pique.

But very explicitly drawing a line in the sand about the kind of integrated products and platform Apple makes and the brand-value proposition they represent to customers.

If the EU wants to regulate those products out of the market, that is (however incomprehensibly) their choice.

@kraigschmidt @daringfireball @jann

Here's a rather detailed overview of this "stupid" regulation that most people haven't read, and people like Gruber willingly refuse to understand: https://ia.net/topics/unraveling-the-digital-markets-act

Here's also an explainer on why it is the way it is: https://www.baldurbjarnason.com/2024/facing-reality-in-the-eu-and-tech/

Can't find in me th strength to shed a tear for these corporations.

Unraveling the Digital Markets Act

To comprehend the DMA's relevance to us as an independent software company, we read and analyzed it from beginning to end.

iA

@kraigschmidt @daringfireball @jann

BTW, should Apple pull out of China, too? It has been bending over backwards implementing every single request from the Chinese government without a single complaint

@dmitriid @kraigschmidt @daringfireball China has far far more than 7% of their global revenue!
@jann Talk about a chicken-and-egg problem.
@kraigschmidt Should they also pull out of the US now that the DoJ is suing them?

@daringfireball Unfair trading conditions/commercial practices is a term of art in EU regulations, and is copiously defined here, and in linked documents.

https://commission.europa.eu/law/law-topic/consumer-protection-law/unfair-commercial-practices-law/unfair-commercial-practices-directive_en

The thing that Americans don’t get when interpreting EU anti-trust regulations is that the main thing they look at is fairness, rather than black-and-white issues, such as in the US.

Unfair commercial practices directive

EU rules to protect consumers from unfair practices before, during and after a commercial transaction

European Commission
@daringfireball Ooor, Apple should comply with DMA to avoid fines? I know this is rather ortodox idea…
@zilahu great idea, they should cripple their business for a bunch of bureaucrats.
@Strwpok comply with law is cripple their business? Interesting :)
@zilahu yes, complying with a law designed to cripple a business for zero good reason, will cripple their business. Hope that clears it up for you.

@Strwpok @zilahu

"Cripple".

All the issues Apple is facing are entirely self-inflicted.

@dmitriid @zilahu strange that these “self inflicted issues” aren’t issues anywhere else in the world. You do know Apple operate in multiple countries.

@Strwpok @zilahu

I wonder if you're able to find the glaring and obvious fault with your statement

@daringfireball The 7% is surprising. Just checked our App Store income for agenda.com, and it is around 23% EU (yes, EU not ‘Europe’), 40% US, 10% China. For us, losing the EU would be a serious problem.
@drewmccormack @daringfireball Can I ask what’s the next down after China?
@martind @daringfireball If I take ‘Europe’ as defined in the article (with Middle East), it is about 36%, just a little smaller than US.

@drewmccormack @daringfireball

It's a really good point. Gruber cares about corporations and their profits more than people (both customers and developers)

@daringfireball

Everything you write about "vague" or "unfair" is a purely US view of a person who refuses to understand a worldview outside of US-branded capitalism.

Here's an article describing all the things you willingly refuse to understand:

"Facing reality, whether it’s about Apple or the EU, is a core requirement for good management" https://www.baldurbjarnason.com/2024/facing-reality-in-the-eu-and-tech/

Also, your continuous "poor mega corporations who don't do no wrong" stream of easily refutable half-truths is getting tired

Facing reality, whether it's about Apple or the EU, is a core requirement for good management

Web dev at the end of the world, from Hveragerði, Iceland

@daringfireball

Also, remember "we don't need to make money on the AppStore" from Jobs himself. Good times.

But then greed prevailed. All the issues Apple is facing are entirely self-inflicted

@dmitriid @daringfireball actually as someone who lives in Europe I totally agree with Gruber. He makes logical points, nothing to do with Americanism.

@Strwpok @daringfireball

All his points stem exactly from a purely US-centric point of view where capitalism should run unchecked and poor trillion-dollar companies can do no wrong because profits.

He literally argues that Facebook should be allowed its pervasive and invasive tracking because doing otherwise might hurt their lucrative ads setup.

And so on and so forth

@dmitriid interesting interpretation, but wrong. He said that Facebook have given people a choice but the EU seen upset that people seem more than willing to accept the tracking to keep using the service for free.

@Strwpok

Nope. He literally wrote an article about Facebook's "lucrative ads business", and how much money each user brings Facebook. And he literally wrote multiple times that "maybe EU should ban targeted advertising altogether".

@daringfireball It seems one of the most fundamental (and fundamentally unfair, in my "American" view) problems with the DMA (and maybe many EU regulations?) is that compliance is not clearly defined.

Why can't the regulatory authorities publish explicit requirements? Why must they judge after the attempt? It suggests the goal is punishment for non-compliance rather than changing the actor's behavior.

@NailClippings @daringfireball

Because the range of human activities is too broad to explicitly define in a law. Laws very rarely explicitly define the exact things people and companies can or cannot do.

That said, DMA lists plenty of explicit requirements

@daringfireball “a significant number of high-GDP countries in Europe that aren’t in the EU — the UK (most famously), Russia, Turkey, Switzerland, Norway, and Ukraine. More importantly, Apple’s “Europe” includes the entire Middle East.”

In 2021 (screenshots only top 10 EU):
• EU GDPs ~$19 trillion.
• Non-EU (~$7T) + Middle East (~$6T) = ~$13 trillion.

Wild to think the EU countries (~$19T GDP) = 7% of global Apple revenue and the non-EU + Middle East (~$13T GDP) = 18%.

@daringfireball Apple should pull out of the EU. Then we can finally claim brexit as a win!
@daringfireball @gruber what happens to all this money? I mean starting with the 2 billion but any other fine. I know it will be held during the appeal but if the EU keeps it? Any guess?
@cavazos Kara Swisher asked Vestager about that on her podcast last week: once paid (there's a big “if" there), it gets distributed to EU member states to do with what they please. Presumably by population?
@gruber I guess like the DMA, at least that’s the spirit of it. Thanks, I'll listen to it.
@daringfireball No strong opinion about Apple compliant in China or should they rather bail out there as well? Your responsibility radar is misaligned.
@daringfireball Europe also contains India and Africa. India might be a fair share of the segment.
@daringfireball Interesting that Eric Seufert has a transcription that says « global App Store revenue » but Six Colors has « global absolute revenue »

@daringfireball The mac makes only 7 percent revenue. drop it.

and ipad is even less, about 6%. drop it as well.

this entire discussion is outright nonsense.

@daringfireball Those 7 % really sound odd. The EU is 17 % of the World economy, so maybe he misspoke. You can also remove Norway (and Iceland and Liechtenstein) from the list. They are part of the European Economic Area (EEA), so they’ll ratify everything the EU puts out. Switzerland and potentially the UK could be in a similar bind in a couple of years.
@daringfireball Apple isn’t doing a very good job selling its products if a population of 450 million relatively wealthy people only accounts for 7% of its sales…