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I think the EU is getting all serious about trying to regulate Apple because they're jealous.

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Yeah, trying to regulate the regulator. They're basically doing, they basically want the same things.

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They're regular haters. Regular haters.

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Regular haters. Regular haters. Apple is trying to like, control its user base, make all these rules about how they're like,

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users, they're constituents if you will, or you know, can behave.

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A lot to live, a lot to act, a lot to interact with one another.

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And you got the EU. Trying to do the same thing.

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The same thing except the users are citizens. Its hypocrisy is what it is.

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Yeah. Why can't they be like other governmental jurisdictions and just not make any laws at all?

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Complete laissez faire, just letting people drive on the sidewalks, download whatever they want,

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side loading they call it, sin I say. It's basically like running people down on the sidewalk if you, side loading an app.

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So think about that. This was not condoned by God.

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Mr. I, we're here to talk about Apple and the EU and some of the most recent developments

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last week because this is coming out on Monday, February 19th.

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Last week Apple was let off the hook in regards to iMessage when it comes to

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slapping the rest of the EU, regulating them.

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Well, yeah, sort of. Because like, so the EU is Digital Markets Act.

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Trying to kind of rein in all these tech giants who are operating willy nilly doing whatever the heck they want,

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closing down their ecosystems, behaving in a way that I don't antitrust.

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That was half baked. And the iMessage was going to be, they were investigating.

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The EU was investigating whether iMessage should be one of these core platform providers

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and thus subject to more regulations.

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Especially because it technically meets the legal definition.

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It's, what is it I wrote down.

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The legal definition is it has at least 45 million EU users every month

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and it's controlled by a firm with at least 75 billion euros in market capitalization.

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And iMessage fits those definitions.

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But Apple specifically was arguing that it should be excluded for various reasons.

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Right. Which, you know, and we heard, oh sorry, and I'll say that the development here is that,

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so even though it fits that definition, the EU decided.

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Has made an explicit carve out. Right. For not only iMessage, but they also made the same thing for.

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Bing, edge browser, and Microsoft's ad services.

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Right. And so we know, you know, we published our TechLinked about this last week

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and we got a lot of comments from you guys talking about,

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especially specifically the ones of you that are in the EU.

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And you were like, we don't use iMessage. This is not a big deal.

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We're totally down with this because we all use WhatsApp instead.

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The other platform offered by a tech giant with like near complete control over social media.

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Which is itself actually considered a gatekeeper by the EU.

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Right. WhatsApp has been designated under the DMA.

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As it should. As it should.

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Yeah. So the EU kind of has backed off and at least that aspect of it.

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And, you know, the EU people, people who live in Europe might be like,

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okay, it totally makes sense. Over here in North America, you know.

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Bit of a culture clash. Definitely. Because over here, a lot of people use iMessage.

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My entire family. Yeah. I think that Android phones altogether still have more market share.

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But Apple is like, it's like Samsung and then Apple.

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Yeah. It's up there. I looked it up recently. I forgot what it was.

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A ton of people use iPhones and iMessage over here and it was interesting.

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It's always interesting reading people who live in the EU posting online about how they're like,

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we don't understand why North Americans are so worked up over this whole green bubble thing.

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Like it's just a bubble. Why does it matter?

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And I would agree with that to an extent. I do think we tend to get over obsessed with the green bubble.

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Because iMessage is interoperable to an extent.

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Yeah, it just sucks. You can message them. It's just you feel like a second-class citizen the entire time.

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Yeah. And I'm sure to some people they do.

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You know, I'm somebody who my friends and family, nearly all of them use iPhone.

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Oh, I am the black sheep of the family group yet. 100%.

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Yeah. Actually, two of my brothers are...

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I have four brothers. Two of them are Android users.

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That's important context. I'm gonna say two of my brothers immediately.

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Is there like 12 Riley Murdochs wandering the countryside?

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They are. It's a menace. Please be careful out there.

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Just mustaches, rustling and bushes? They will laugh awkwardly all the time, just for no reason.

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Two of them are Android users and basically every other person in my friends and family circle

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are iPhone users. So it is really annoying when I get a...

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I'll get messages because it sucks for both parties.

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I'll get messages with a photo or video from my parents and they're like,

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look at this and they were babysitting my kid the other day and they sent me a video.

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And I'm just like... Compressed, blurry. You're just like, I don't remember him being that pixelated when I dropped him off.

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It looks like he's either having fun or being disemboweled by a stuffed animal.

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I don't know what's going on. You seem excited. I'll judge from context that he's not dead.

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Yes, exactly. No, it's designed to annoy both sides of the interaction.

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It is designed to annoy the Android users and we're the one who tend to fixate on it,

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but it's also intended to annoy iPhone users.

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Right, into not doing anything.

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Well, that's what I'm confused about.

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You want your own users annoyed with...

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But I think they're depending on iPhone users on mass,

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not really understanding the root cause of the issue.

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They don't understand that Apple could fix it. They think the problem is that, oh, I'm texting this broke Android user.

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With their inferior device. Yeah, why don't they just buy an iPhone?

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And it's like, no, Tim Apple specifically in his giant tower of evil,

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he has been plotting to make it so that your grandkids' photos look like absolute messes.

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Look upon your photo library and despair.

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Oh my gosh. May I just say that I found recently that some people have actually made compilations of me

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doing the Tim Cook impression and it made me so happy.

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I think there's two big ones that are out there.

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Maybe a third one. I don't want to make anyone angry. If you made those, I sincerely thank you.

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They are fun. They bring me joy.

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But yeah, this iMessage thing, it's gotten North Americans confused

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and there was another thing that kind of came out last week

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about Apple and the EU and the regulations and whatnot,

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which was the Apple's attitude towards progressive web apps.

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Can you summarize exactly? This is not something that is in the official build yet.

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This is in beta build. And in the past three, so like with the first two, they're like,

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oh, this might be a mistake. This might be a glitch.

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Right. Now that it's been like three separate builds, Apple has not fixed this.

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This was previously functional. They're like, okay, this is probably intentional.

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This is probably Apple doing something intentionally,

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especially because it's happening at the same time as all of these other changes.

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Right. And it's that they are making progressive web apps

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non-functional in this build.

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So they're just they're breaking them. They're breaking them.

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They're breaking them. They're making them no longer act as apps

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that you can open from the home screen. You know, boop, there you go.

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And they're making them into essentially they function now

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as shortcuts that just open a web browser. They just open the web page.

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Which, to be fair, is essentially what progressive web apps are.

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Right? Yes. They are shortcuts.

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They're shortcuts, but they kind of also like some processing

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is done on the device and some is done. It's the illicit love child of an app and a web page.

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Right. They have features of both.

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They do allow you to have like local storage,

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which is no longer operable on iOS.

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They do allow notifications, which is no longer operable on iOS.

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Yeah. And the big thing is about progressive web apps.

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Like I don't actually see like a huge user backlash to this.

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Yeah. Well, and this is mostly something that the brands themselves

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really like. Yeah.

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I have, in the years that I've been covering tech news,

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I've encountered the idea of progressive web apps, obviously, and I've like seen them, you know.

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Yeah, because they support caring for the homeless and they want healthcare.

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Progressive web apps. And also they're really convenient.

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They open straight from the home page.

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They're web apps that push for change.

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No. Yeah.

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There's sort of changes to the app design

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that allows it to kind of like, you know, launch more responsively and, you know,

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be a bit easier to use in the way that an app is,

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like an actually installed app. But it's basically a website still.

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Yes. Because it is, yeah, you're going through a browser.

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And in my... It's an Uber web page that operates like the Uber app.

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Yeah. Looking these up a little bit just a few minutes ago,

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because I asked myself, I'm like, why do these exist?

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Who wanted these? Does this really make life better for users

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or for like business owners? And it seems like the people who really wanted these

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were business owners. I don't want to speak for anyone if you're,

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you know, on the user side of this and you're like, I love progressive web apps.

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Every time I, you know, go on my browser

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and look up a website. We don't mean to invalidate your lived experience.

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Yeah. I'd go on a website and it tells me,

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maybe you want to switch to the web app or whatever,

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and you do that and you're very happy, then fair enough.

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But for me, every time that it gave me that prompt on my phone, I'm like, no, just go to the,

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just go to the website, please.

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Stop. Yeah. And so...

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We are old men, so... Yeah, yeah.

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We don't like this new fangled business. As far as I can tell, the reason web apps really became a thing

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is because they allow businesses

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to kind of farm more interaction and engagement

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from users when they go to a website. So apparently...

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They decreased the friction of getting the consumer

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on the app, engaging with the material,

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buying the goods. Yeah.

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So apparently Pinterest, a 2018 review published by Forbes,

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this is just on Wikipedia, found that users of Pinterest's progressive web app

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spent 40% more time on the site compared to the previous mobile website.

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Revenue increased by 44%, core engagements by 60%.

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So I'm like, okay, I understand. You know, because a progressive web app

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is a bit easier to use than, like, a lot of mobile sites.

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It's a slicker experience. It has less friction, less of those petty annoyances

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that make you go, I should really go make something to eat.

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I should really go clean the house.

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Right. It's easier to just suck you in.

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I guess the benefit, though, for users

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is that you can have an app... They spend less time with their kids.

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And more time sucked into a security. You know, and anything that can get you away.

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Just that little bit of a dopamine hit to take away the nigh

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unstopping pain of existence. And Apple doesn't want that

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because they want your families to remain intact.

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Absolutely. And buy more Apple products.

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This is a Tim Cook conspiracy

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to maintain the traditional family. I'm not going to do another impression.

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The... The... The bait didn't work.

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We get so excited on the writing team. Every time...

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Every time Tim Cook makes an announcement.

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I'm like, yes, yes, he's back. Yes.

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But the benefit for the users is the fact that you can have, like,

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an app-like experience outside of the distribution channel

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that is the Apple App Store

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or Google Play. So businesses can deliver this sort of

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experience to users without going through all... Jumping through all those hoops.

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Without necessarily having to use those stores as an intermediary.

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Right. And that's why Apple wasn't really a fan of it

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to begin with. Apple was never a fan of it. Right.

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They caved a bit to pressure. Yeah.

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And it looks like they're uncaving. It looks like they're digging out that cave.

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Oh, wait. Really? I thought they...

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I mean this. Well, they're killing them, right? Yes.

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But they didn't want to put them in the first place. Oh, they caved to the pressure to allow... Yeah.

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Right, right, right. Another uncaving. Yeah, I get what you're saying.

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The cave, you know, I don't do well with cave analogies. They're decaving.

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Right. And like, caving is not...

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It's something that is not excavating a cave. It just means going inside a cave.

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Yes. Splunking. There's that.

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Wait, what is caving?

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I'm honestly... Well, I mean,

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I don't know if there's multiple definitions of the word cave.

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I know that like... Caving also known as spelunking.

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Yep. And potholing. So...

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I have never heard of that before. That's... They're just making them up at this point.

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That sounds dirty. Now, does this have anything to do with the EU thing, really?

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Because Apple was forced to open up iOS

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to third-party app stores.

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Sort of, we'll get into that.

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Because they were forced to do that, now they're like, well, I guess we don't need progressive web apps,

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which was the previous method to kind of like skirt the app store.

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Now you're gonna have your very own third-party app store,

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instead of the Apple app store on your iPhones.

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So you don't need progressive web apps anymore, so they're only killing these...

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Are you happy now, developers? Stop crying!

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So they're only killing it in the European Union.

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Yes, it's exclusive to the EU. And that's another hint, is like,

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okay, you're doing this intentionally, it's exclusively in the EU.

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Is this a response to the other things going on in the EU?

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Because, you know, Apple does do these things to keep regulators happy.

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And if it's making a concession another area,

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maybe we don't have to make this concession anymore. And of course, as their official explanation,

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Apple has to claim that malicious web apps

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could read data from other web apps and gain access to a user's camera,

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microphone, and location without user consent. And like, think of the user!

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When they said similar things like this... For shame!

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The user! They said similar. They did scary language like this as well

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when they released their, like, new rules for the app store in the EU.

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But, like, those things are true...

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Yes, they are. ...of any platform, if malware gets it.

228
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So it's like, the... You know, maybe we should talk about this

229
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when we, like, as we talk about the other regulations,

230
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but just quickly,

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anytime Apple talks about security as a reason for why they need to lock things down,

232
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it always reads so hollow, because every other platform allows these things

233
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and is able to have reasonable security,

234
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like, reasonable protection. But Apple is the only

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massive company, like, overseeing one of these massive platforms used by so many people

236
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who insists that they have to have things locked down

237
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so tight. Mother knows best. It's very paternalistic.

238
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It is. And it's one of those competing values

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kind of things where it's like, well, you want these services to be safe, right?

240
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And I do. True. I do.

241
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I very much do. But it's...

242
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The question is not, should this be safe,

243
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is are you balancing this correctly with other concerns?

244
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And largely,

245
00:16:51,000 --> 00:16:54,000
it is almost always the case that Apple is pushing

246
00:16:54,000 --> 00:16:57,000
always like 10% too far. Yeah.

247
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It's 10% too far. And it's interesting because

248
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even when they do kind of open up,

249
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they open up in the most limited way possible,

250
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which... Like a reluctant child who's been told to apologize,

251
00:17:11,000 --> 00:17:16,000
dragging their feet and saying, I'm sorry, I...

252
00:17:16,000 --> 00:17:20,000
Well, but it's even, it's worse than that, because they're not acting petulant or like...

253
00:17:20,000 --> 00:17:23,000
No. Like a kid so much as they... They're acting put upon.

254
00:17:23,000 --> 00:17:26,000
They're acting like a dictator

255
00:17:26,000 --> 00:17:29,000
that was just forced to respect human rights.

256
00:17:29,000 --> 00:17:34,000
Like, they're like, okay, I guess we will allow people...

257
00:17:34,000 --> 00:17:37,000
But just so you know, this is letting the communists win.

258
00:17:37,000 --> 00:17:40,000
Yeah. But just so you know, if we let people out of their cells,

259
00:17:40,000 --> 00:17:43,000
they could punch each other. So on the street.

260
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So everyone needs to stay. That's why we need a curfew.

261
00:17:46,000 --> 00:17:49,000
So that brings me to the App Store rules

262
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that Apple instituted

263
00:17:52,000 --> 00:17:56,000
because they were forced to because there was a deadline...

264
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Or the deadline is coming up. We haven't hit the deadline yet,

265
00:17:59,000 --> 00:18:02,000
but they know that they have to get these rules out and then there's a review process

266
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and like the EU has to approve them and all that stuff and that.

267
00:18:05,000 --> 00:18:12,000
I don't think anything has really moved forward on that. But if I'm not mistaking the deadline is...

268
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It's coming up. March 6th, I believe.

269
00:18:15,000 --> 00:18:18,000
So yeah, Apple is now allowing

270
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third-party app marketplaces,

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what they call... Well, they do have the bit of the Kleenex problem

272
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where their word for an App Store

273
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became the default word for an App Store.

274
00:18:30,000 --> 00:18:33,000
Yeah. And I guess they were really like the first big one.

275
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Yeah. They called them Apps. The Play Store is also an App Store.

276
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Not only... So they're saying we're allowing you

277
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to have these third-party App Stores. However,

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every app that goes on the

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App Marketplace, that is not ours,

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we still have to scan it. We still have to make sure that it's cool.

281
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Which is, you know,

282
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somewhat fair on macOS

283
00:19:01,000 --> 00:19:05,000
and on Windows. You can install any app you want

284
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and the system security will scan the app when it's installed

285
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or it'll check it against a list of currently known, you know,

286
00:19:12,000 --> 00:19:15,000
malicious apps or whatever and it'll give you a warning

287
00:19:15,000 --> 00:19:18,000
or whatever. But Apple's saying that

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in order for you to publish an app on this other App Store at all,

289
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they need to notarize it. For you to even consider downloading it,

290
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it must pass through a test.

291
00:19:29,000 --> 00:19:33,000
Which is just... And this is... Yeah, it's just so Apple.

292
00:19:33,000 --> 00:19:36,000
If you want to launch an alternate App Marketplace,

293
00:19:36,000 --> 00:19:40,000
you need to have a letter of credit from an A-rated financial institution

294
00:19:40,000 --> 00:19:44,000
and at least a million euros in the bank.

295
00:19:44,000 --> 00:19:48,000
Which I heard some developers say is actually kind of reasonable.

296
00:19:48,000 --> 00:19:52,000
It does mean that they have a backstop in case something terrible happens.

297
00:19:52,000 --> 00:19:55,000
Yeah. Which you do want for a company

298
00:19:55,000 --> 00:19:59,000
that's dealing with very large amounts of refunds, potentially.

299
00:19:59,000 --> 00:20:03,000
Right. But what they're definitely not allowing

300
00:20:03,000 --> 00:20:07,000
is... So, like, there's some progress here. They're definitely not allowing

301
00:20:07,000 --> 00:20:10,000
sideloading. No. People keep saying that.

302
00:20:10,000 --> 00:20:14,000
I've seen articles published in the last week that are saying that Apple is allowing

303
00:20:14,000 --> 00:20:18,000
sideloading. Really? And as far as I can tell, they are not.

304
00:20:18,000 --> 00:20:21,000
I heard... I saw a bunch of initial articles talking about it,

305
00:20:21,000 --> 00:20:25,000
but it's so annoying because you have some people who, I think,

306
00:20:25,000 --> 00:20:29,000
view sideloading as just... Anything that isn't the App Store?

307
00:20:29,000 --> 00:20:32,000
Yeah. Which is like... Well...

308
00:20:32,000 --> 00:20:35,000
Words have meanings. Yeah. Sideloading should mean

309
00:20:35,000 --> 00:20:39,000
going to a website or something or downloading a file, an APK file,

310
00:20:39,000 --> 00:20:42,000
or... Or a package file on...

311
00:20:42,000 --> 00:20:47,000
I don't know what it is on iOS, but... And then double-clicking that file to install it.

312
00:20:47,000 --> 00:20:51,000
And... You're not getting it through an App Store at all.

313
00:20:51,000 --> 00:20:54,000
To me, that's sideloading. But, you know, fair enough,

314
00:20:54,000 --> 00:20:57,000
Apple people, you know, they're in their own world sometimes.

315
00:20:57,000 --> 00:21:00,000
It's like you're calling her your side chick and she's just your wife? What's going on?

316
00:21:00,000 --> 00:21:03,000
I will say... I will say that

317
00:21:03,000 --> 00:21:07,000
every time I talk about Apple, I get self-conscious about whether, like,

318
00:21:07,000 --> 00:21:10,000
Apple people listening to this, people who are Apple fans listening to this

319
00:21:10,000 --> 00:21:13,000
think that I, like, absolutely just hate Apple. And I don't...

320
00:21:13,000 --> 00:21:16,000
I don't at all. I think that they... Every day he walks into the office

321
00:21:16,000 --> 00:21:20,000
and he just punches a picture of Tim Cook. It's just got him on a dartboard.

322
00:21:20,000 --> 00:21:25,000
He doesn't even throw the darts. He just... I will defeat you and take your place.

323
00:21:25,000 --> 00:21:28,000
That's what he's been practicing for. Yeah.

324
00:21:28,000 --> 00:21:31,000
Barbara, come on. Tim Cook's skin suit.

325
00:21:31,000 --> 00:21:35,000
No, I love Apple. I used to be an Apple user

326
00:21:35,000 --> 00:21:39,000
before I got hired at NCIX and, like, just fully got brainwashed

327
00:21:39,000 --> 00:21:42,000
into PC ecosystem. My wife uses Apple.

328
00:21:42,000 --> 00:21:45,000
Everyone, like, a lot of people I know, use Apple and I'm like,

329
00:21:45,000 --> 00:21:48,000
it's good for you. It's good for a certain type of people. They are very high-quality products.

330
00:21:48,000 --> 00:21:52,000
The UI is simple. The design is slick.

331
00:21:52,000 --> 00:21:55,000
And they're easy to use. And they're secure, you know?

332
00:21:55,000 --> 00:21:59,000
They are. For better or worse, the measures that Apple takes

333
00:21:59,000 --> 00:22:03,000
does help these people, these poor people,

334
00:22:03,000 --> 00:22:07,000
who don't know how to use a phone unless Apple tells them how to.

335
00:22:07,000 --> 00:22:10,000
See, I did it again. It's compulsive.

336
00:22:10,000 --> 00:22:14,000
I can't be fully positive. So you got some notes here.

337
00:22:14,000 --> 00:22:19,000
Commissions paid to Apple have been reduced to 10% for most devs

338
00:22:19,000 --> 00:22:22,000
and for subscriptions after the first year.

339
00:22:22,000 --> 00:22:25,000
And then there's a 17% commission

340
00:22:25,000 --> 00:22:30,000
for digital goods and services. And that is if developers choose

341
00:22:30,000 --> 00:22:33,000
to adopt the new business terms. Yes.

342
00:22:33,000 --> 00:22:36,000
They stay on the old business terms

343
00:22:36,000 --> 00:22:40,000
where it's like 30% or 15% depending on what your position is

344
00:22:40,000 --> 00:22:44,000
in the developer marketplace, how popular you are, et cetera, et cetera,

345
00:22:44,000 --> 00:22:47,000
how much revenue you're getting. Et cetera, et cetera. Yeah.

346
00:22:48,000 --> 00:22:51,000
But here's the kicker.

347
00:22:51,000 --> 00:22:54,000
Just from that, it sounds like... Sounds awesome.

348
00:22:54,000 --> 00:22:58,000
It sounds like you should move. But they also introduced...

349
00:22:58,000 --> 00:23:01,000
Oh, so add on to that potential 17%,

350
00:23:01,000 --> 00:23:05,000
3% fee if you still want to use Apple's payment processing.

351
00:23:05,000 --> 00:23:09,000
If you want to use an alternative payment processing, you can drop that 3% fee.

352
00:23:09,000 --> 00:23:13,000
But Apple also introduced an additional core technology fee

353
00:23:13,000 --> 00:23:19,000
of half a euro for each annual install per user

354
00:23:19,000 --> 00:23:22,000
after the app crosses one million installs threshold.

355
00:23:22,000 --> 00:23:26,000
And I am almost positive that they make this

356
00:23:26,000 --> 00:23:29,000
so hard to understand on purpose. Yeah.

357
00:23:30,000 --> 00:23:33,000
If math was your least favorite subject

358
00:23:33,000 --> 00:23:36,000
in school, this is meant to trick you.

359
00:23:36,000 --> 00:23:40,000
Yeah, for sure. Because it doesn't sound like a lot,

360
00:23:40,000 --> 00:23:43,000
but it's super complicated to understand,

361
00:23:43,000 --> 00:23:46,000
to really grok what's going on here.

362
00:23:46,000 --> 00:23:49,000
Yeah. And it took me a while to wrap my head around it.

363
00:23:49,000 --> 00:23:54,000
So essentially, the first time a user goes to install an app

364
00:23:54,000 --> 00:23:58,000
on their device, if they've never installed this app before,

365
00:23:59,000 --> 00:24:02,000
when they install it, the developer will pay half a euro.

366
00:24:02,000 --> 00:24:05,000
Then, that user can install that app

367
00:24:05,000 --> 00:24:09,000
anywhere they want on other devices, and the developer won't be charged

368
00:24:09,000 --> 00:24:13,000
for 12 months. 12 months after the day

369
00:24:13,000 --> 00:24:16,000
that the user installs the app for the first time,

370
00:24:16,000 --> 00:24:19,000
then if they uninstall it and reinstall it

371
00:24:19,000 --> 00:24:23,000
or install it on another device, then the developer will be pinged again.

372
00:24:23,000 --> 00:24:26,000
Yeah, dinged. Not pinged. They won't get a little message

373
00:24:26,000 --> 00:24:28,000
reminding them to reply to an email or something.

374
00:24:30,000 --> 00:24:33,000
Yeah, so. And that happens for every user

375
00:24:35,000 --> 00:24:38,000
after the app has been installed one million times.

376
00:24:38,000 --> 00:24:43,000
So if you've got two million, that's half a million euros in fees.

377
00:24:43,000 --> 00:24:46,000
Yes. And they have a handy calculator

378
00:24:46,000 --> 00:24:50,000
so developers can go and see how much they might lose.

379
00:24:50,000 --> 00:24:53,000
To see how absolutely ruined they're going to be.

380
00:24:53,000 --> 00:24:57,000
Yeah, and most developers, it seems if you have an app

381
00:24:57,000 --> 00:25:00,000
that's popular in any way. To any degree.

382
00:25:00,000 --> 00:25:04,000
But particularly, if you do not have in-app purchases.

383
00:25:04,000 --> 00:25:07,000
Like if you, because I was thinking about my favorite

384
00:25:07,000 --> 00:25:10,000
game back in the day, which was Plants vs. Zombies,

385
00:25:10,000 --> 00:25:14,000
the first one before they ruined it. And in that game,

386
00:25:14,000 --> 00:25:18,000
I only paid for that game once. But I like to redownload it

387
00:25:18,000 --> 00:25:20,000
every few years to play it again.

388
00:25:21,000 --> 00:25:23,000
I would be financially...

389
00:25:24,000 --> 00:25:27,000
Well, the developer would. The developer? No, like I would be punishing them.

390
00:25:27,000 --> 00:25:30,000
Yes, yes. They would be getting punished

391
00:25:30,000 --> 00:25:33,000
for my love. Yeah. Yeah.

392
00:25:33,000 --> 00:25:36,000
My affection and my nostalgia for this game

393
00:25:36,000 --> 00:25:40,000
and the fact that they're not pushy with in-app purchases

394
00:25:40,000 --> 00:25:43,000
that you don't, it's not a live service game

395
00:25:43,000 --> 00:25:47,000
that's constantly trying to suck the life out of you. That would actually be penalized

396
00:25:47,000 --> 00:25:50,000
by this kind of game, this kind of payment structure.

397
00:25:50,000 --> 00:25:54,000
And Apple has said that they are like, oh, we're going to protect against

398
00:25:55,000 --> 00:25:58,000
people... Maliciously doing this. Yeah, people taking advantage of the system

399
00:25:58,000 --> 00:26:01,000
if they want to like cancel developers. But you can also just

400
00:26:01,000 --> 00:26:04,000
unmaliciously be severely punished by this. Yeah.

401
00:26:04,000 --> 00:26:07,000
And that's actually far more likely. I think it was such whiplash,

402
00:26:07,000 --> 00:26:11,000
oh, and one more thing, that core technology fee of half a euro,

403
00:26:11,000 --> 00:26:14,000
it applies to alternate-app

404
00:26:14,000 --> 00:26:17,000
marketplaces for every install. They don't need to wait...

405
00:26:17,000 --> 00:26:20,000
They are not protected by the one million install threshold.

406
00:26:20,000 --> 00:26:25,000
Yeah, so you don't have to wait for an app marketplace to be installed a million times.

407
00:26:25,000 --> 00:26:28,000
Now, all of these numbers,

408
00:26:28,000 --> 00:26:32,000
does it only have to be installed one million times in the EU?

409
00:26:33,000 --> 00:26:36,000
Presumably. I feel like that's true. Presumably.

410
00:26:36,000 --> 00:26:40,000
Yeah, it must be. It'd be weird if it wasn't. It'd be weird if like,

411
00:26:40,000 --> 00:26:43,000
you had like a million installs in like,

412
00:26:43,000 --> 00:26:46,000
I don't know, Tajikistan. Yeah.

413
00:26:46,000 --> 00:26:50,000
And you had one install over that limit in the EU,

414
00:26:50,000 --> 00:26:53,000
and suddenly you owed Apple like a dollar.

415
00:26:53,000 --> 00:26:56,000
Yeah. So there's like, there's sort of...

416
00:26:56,000 --> 00:27:00,000
That's not intuitive. There's sort of a...

417
00:27:00,000 --> 00:27:04,000
You can see Apple's side here a little bit, because as we've said,

418
00:27:04,000 --> 00:27:08,000
EU people say again and again how not popular iPhones are

419
00:27:08,000 --> 00:27:12,000
and iMessages in Europe. Although iPhone is more popular than iMessage.

420
00:27:12,000 --> 00:27:15,000
That's true. A lot of people will still have iPhones. Download WhatsApp on it.

421
00:27:15,000 --> 00:27:19,000
Yeah, for sure. WhatsApp gets dinged.

422
00:27:19,000 --> 00:27:23,000
But yeah, this came out and the news came out

423
00:27:23,000 --> 00:27:27,000
and it seemed like, oh my gosh, the EU got Apple.

424
00:27:27,000 --> 00:27:30,000
You know, they... We've been forcing...

425
00:27:30,000 --> 00:27:33,000
They basically forced them to put USB-C in the iPhone.

426
00:27:33,000 --> 00:27:36,000
Yes. Apple finally caved to that,

427
00:27:36,000 --> 00:27:40,000
I think before they really had to, but like, they made it clear,

428
00:27:40,000 --> 00:27:43,000
I think at some point, I remember a press release.

429
00:27:43,000 --> 00:27:46,000
They knew it was inevitable. About how they were like, it was worse,

430
00:27:46,000 --> 00:27:49,000
but we're doing it anyway, I guess. For you.

431
00:27:49,000 --> 00:27:52,000
Even though the connector's better than lightning, whatever.

432
00:27:52,000 --> 00:27:55,000
I don't know if it's... If it's like a factual thing,

433
00:27:55,000 --> 00:27:59,000
I always felt that the lightning connectors wore out faster.

434
00:27:59,000 --> 00:28:03,000
The actual connector that's themselves are pretty robust.

435
00:28:03,000 --> 00:28:06,000
But like the... I found the cables fraying.

436
00:28:06,000 --> 00:28:10,000
The cables fray like anything else. Like nothing else.

437
00:28:10,000 --> 00:28:14,000
Yeah. Or maybe that's because I was jumping a rope with them.

438
00:28:14,000 --> 00:28:17,000
That'll do it. Apple...

439
00:28:17,000 --> 00:28:20,000
I got whiplash when we reported on this.

440
00:28:20,000 --> 00:28:23,000
It was like, wow, you got Apple.

441
00:28:23,000 --> 00:28:27,000
And then the more you read into it, the more like, oh, this is why

442
00:28:27,000 --> 00:28:31,000
people called it malicious compliance. However, one other thing that came out

443
00:28:31,000 --> 00:28:37,000
at the same time was Apple announced that globally, gaming apps,

444
00:28:37,000 --> 00:28:41,000
cloud gaming apps can now list all of their library and have their

445
00:28:41,000 --> 00:28:46,000
library of games accessible from within the iOS app on the App Store,

446
00:28:46,000 --> 00:28:50,000
which was not allowed before. Yeah, they'll list them all individually.

447
00:28:50,000 --> 00:28:53,000
Well, that's what Apple wanted them to do. Like Xbox and...

448
00:28:53,000 --> 00:28:57,000
Resident Evil 1, Resident Evil 2, Resident Evil 3, Code Veronica.

449
00:28:57,000 --> 00:29:01,000
Xbox basically said, yeah, no, we're not doing that.

450
00:29:01,000 --> 00:29:06,000
And then they just had the web app basically. You could go to gforcinalo.com

451
00:29:06,000 --> 00:29:10,000
or Xbox, Game Pass or whatever, and you could use the browser to stream games,

452
00:29:10,000 --> 00:29:15,000
but it's not a great solution. So at least that's the one thing

453
00:29:15,000 --> 00:29:18,000
that they unequivocally gave ground on.

454
00:29:18,000 --> 00:29:23,000
But the rest of it, it remains to be seen

455
00:29:23,000 --> 00:29:26,000
how the whole Apple versus the EU situation

456
00:29:26,000 --> 00:29:30,000
will continue to play out here. Where do you see things going from here?

457
00:29:30,000 --> 00:29:33,000
Do you see the EU calling Apple out on this

458
00:29:33,000 --> 00:29:37,000
and being like, no, this is not good enough, or are they gonna do a similar thing

459
00:29:37,000 --> 00:29:41,000
that they did with iMessage, because they know that iMessage qualifies,

460
00:29:41,000 --> 00:29:44,000
but it's only their jurisdiction in Europe.

461
00:29:44,000 --> 00:29:48,000
It makes kind of sense. It has a lot to do with just how we're defining

462
00:29:48,000 --> 00:29:52,000
what a market is. If we're only defining it as the EU

463
00:29:52,000 --> 00:29:56,000
and we're only defining it as... A lot of antitrust is like that,

464
00:29:56,000 --> 00:30:00,000
and it can be quite frustrating, because it feels like, principally,

465
00:30:00,000 --> 00:30:04,000
you should be doing it this way, but no, it is done by rule.

466
00:30:04,000 --> 00:30:09,000
It is done by these esoteric, very specific principles that are...

467
00:30:09,000 --> 00:30:12,000
We have been using legally as jurisprudence

468
00:30:12,000 --> 00:30:17,000
for hundreds of years, and they don't really make a lot of sense

469
00:30:17,000 --> 00:30:21,000
unless you're very immersed in them. Yeah, I mean...

470
00:30:21,000 --> 00:30:24,000
But I do think that Apple's going to get

471
00:30:24,000 --> 00:30:28,000
significantly more pushback for what they've been doing with the App Store

472
00:30:28,000 --> 00:30:32,000
than they will for... I do not think it's going to go...

473
00:30:32,000 --> 00:30:38,000
Maybe they're not going... Maybe regulators are not going to

474
00:30:38,000 --> 00:30:42,000
push them that hard, but I cannot imagine they'll just give them

475
00:30:42,000 --> 00:30:46,000
a complete carve-out and accept these new rules. Yeah, they're just...

476
00:30:46,000 --> 00:30:50,000
They're ridiculous, because... They seem actively worse

477
00:30:50,000 --> 00:30:54,000
than the rules they were forced to change. Developers basically have a choice between

478
00:30:54,000 --> 00:30:58,000
sticking with Apple's old rules, which are the proper right rules

479
00:30:58,000 --> 00:31:02,000
that you should follow, or switching to this new system

480
00:31:02,000 --> 00:31:06,000
because they really, really, really want to launch a third-party...

481
00:31:06,000 --> 00:31:10,000
Their apps on their third-party App Store, or like Epic, they want to launch their own

482
00:31:10,000 --> 00:31:14,000
third-party App Store. But by doing that,

483
00:31:14,000 --> 00:31:18,000
they're getting so much worse of a deal. A hefty financial penalty.

484
00:31:18,000 --> 00:31:22,000
And basically the only people... Epic has said,

485
00:31:22,000 --> 00:31:26,000
we're going to launch Fortnite on iOS through the Epic Game Store

486
00:31:26,000 --> 00:31:30,000
when we launch that as a new App Marketplace later this year.

487
00:31:30,000 --> 00:31:34,000
But... Like the Epic Game Store,

488
00:31:34,000 --> 00:31:38,000
which is to be an exercise in losing money because they're going to be...

489
00:31:38,000 --> 00:31:42,000
They're still going to be paying Apple crazy amounts of fees if they do this.

490
00:31:42,000 --> 00:31:46,000
Through the notes. I half expect them to just say,

491
00:31:46,000 --> 00:31:50,000
like, you know what, we're still not going to do it, because I feel like they wanted to take this win

492
00:31:50,000 --> 00:31:54,000
quote-unquote... They wanted to revel a little bit

493
00:31:54,000 --> 00:31:58,000
in Apple being forced to allow third-party App Stores

494
00:31:58,000 --> 00:32:02,000
by saying, haha! We are going to launch our App Store

495
00:32:02,000 --> 00:32:06,000
at all before. Now they can do it. But it's going to be like...

496
00:32:06,000 --> 00:32:10,000
At what cost? At a big one.

497
00:32:10,000 --> 00:32:14,000
But the thing is, we're not the only ones who are aware of this.

498
00:32:14,000 --> 00:32:18,000
Regulators are likely to be aware that offering someone

499
00:32:18,000 --> 00:32:22,000
a choice that technically exists but is effectively the

500
00:32:22,000 --> 00:32:26,000
exact same choice as before. It's just like, well, like previously

501
00:32:26,000 --> 00:32:30,000
I said you could go by my rules and now you have the option of going by my rules

502
00:32:30,000 --> 00:32:34,000
by stepping into this bear trap. Yeah.

503
00:32:34,000 --> 00:32:38,000
I cannot imagine that will fly. Yeah.

504
00:32:38,000 --> 00:32:42,000
And then there's the whole question of whether the EU should be attempting

505
00:32:42,000 --> 00:32:46,000
to regulate these companies in this way. Because

506
00:32:46,000 --> 00:32:50,000
as far as... So far

507
00:32:50,000 --> 00:32:54,000
it seems like the EU has kind of put through regulations

508
00:32:54,000 --> 00:32:58,000
that, at least to us in the tech sphere, we don't...

509
00:32:58,000 --> 00:33:02,000
We aren't really involved in keeping up with European

510
00:33:02,000 --> 00:33:06,000
regulations in non-tech... Speak for yourself.

511
00:33:06,000 --> 00:33:10,000
Sure. Potholes.

512
00:33:10,000 --> 00:33:14,000
And we can't talk about it now even if we are caught up with it.

513
00:33:14,000 --> 00:33:18,000
But with other areas of politics we're not going to delve into like,

514
00:33:18,000 --> 00:33:22,000
oh, the EU is regulating healthcare or all these things, right?

515
00:33:22,000 --> 00:33:26,000
Should there be a tariff on Brussels brown? Yeah, exactly.

516
00:33:26,000 --> 00:33:30,000
As far as that, we like what the EU has done so far

517
00:33:30,000 --> 00:33:34,000
broadly. But the question becomes

518
00:33:34,000 --> 00:33:38,000
when do they stop? At what point will the EU say,

519
00:33:38,000 --> 00:33:42,000
all right, that's enough regulation now. The market is

520
00:33:42,000 --> 00:33:46,000
sufficiently de-freedomized a little bit

521
00:33:46,000 --> 00:33:50,000
so that it's a bit more fair. But I

522
00:33:50,000 --> 00:33:54,000
hope that they stop at the right point instead of just

523
00:33:54,000 --> 00:33:58,000
regulations on companies such that because

524
00:33:58,000 --> 00:34:02,000
sometimes you can foster innovation other times you can stifle innovation

525
00:34:02,000 --> 00:34:06,000
with regulations, so I don't know. I don't live in Europe.

526
00:34:06,000 --> 00:34:10,000
We live in Canada. Which is essentially the Europe of North America.

527
00:34:10,000 --> 00:34:14,000
I think you offended a lot of Europeans there.

528
00:34:14,000 --> 00:34:18,000
And I'm glad. Primarily because it's a country and not...

529
00:34:18,000 --> 00:34:22,000
Okay, well let me say goodbye to the Europeans in their own language.

530
00:34:22,000 --> 00:34:26,000
Thank you for watching, guys. Um...

531
00:34:26,000 --> 00:34:30,000
Don't forget to subscribe to TechLanged.

532
00:34:30,000 --> 00:34:34,000
See you. That might be too offensive

533
00:34:34,000 --> 00:34:38,000
to include in the video. But I'm not going to do an alternative

534
00:34:38,000 --> 00:34:40,000
so we're forced to use it.
