2 Replies Latest reply on May 27, 2011 9:21 AM by donc13

    The Apple Tax: Will B&N pay?

    NookVine

      Apple changed their terms with their app developers.  B&N will no longer be able to sell books on their web site after June 30 if the books are to be viewed using the iPad app. All books must be bought through iTunes.  So, an iPad owner will have to buy a B&N book through Apple even if it will be eventually read on the Nook.  This also affects Amazon and any other media centric company.  One company recently called it quits by closing their business entirely (see article here). What is B&N to do? If they block sales from the B&N website, Nook owners can't buy books.  If they allow sales from the B&N website, then the iPad owners will not be able to access those books.

       

      Could Apple impose these new terms with other products? Will that Starbucks coffee or that Chipotle burrito you bought from your iPhone be next in line for the Apple "tax"?  It does not seem a far stretch to me, and I think the Justice Department should be interested in the ramifications of this too.  I hope B&N will stand up against this big brother tactic from Apple (yes, Apple, you are now "Big Brother" despite your 1984 commercial that says otherwise).  We should know something by June 30th.

       

      OK, I will step down from my soapbox now.

       

        • Re: The Apple Tax: Will B&N pay?
          Schwa

          1) Start successful ebook business

           

          2) Make successful ereading device

           

          3) make an app that runs on a competing device

           

          4) win many user awards for said app on said competing device

           

          5) competing device blocks usage of your award winning popular reading app

           

          6) customers complain that your app is no longer available on competing device

           

          7) offer them the device mentioned in step 2 that does a lot of the same FUNCTIONS THEY ACTUALLY USE for half the price

           

          8) win

           

          YMMV :smileywink:

          • Re: The Apple Tax: Will B&N pay?

            NookVine wrote:

            Apple changed their terms with their app developers.  B&N will no longer be able to sell books on their web site after June 30 if the books are to be viewed using the iPad app. All books must be bought through iTunes.  So, an iPad owner will have to buy a B&N book through Apple even if it will be eventually read on the Nook.  This also affects Amazon and any other media centric company.  One company recently called it quits by closing their business entirely (see article here). What is B&N to do? If they block sales from the B&N website, Nook owners can't buy books.  If they allow sales from the B&N website, then the iPad owners will not be able to access those books.

             

            Could Apple impose these new terms with other products? Will that Starbucks coffee or that Chipotle burrito you bought from your iPhone be next in line for the Apple "tax"?  It does not seem a far stretch to me, and I think the Justice Department should be interested in the ramifications of this too.  I hope B&N will stand up against this big brother tactic from Apple (yes, Apple, you are now "Big Brother" despite your 1984 commercial that says otherwise).  We should know something by June 30th.

             

            OK, I will step down from my soapbox now.

             


            Google "apple app store antitrust" and you'll see that the Dept. of Justice is already taking notice.

             

            It's not so much Apple's 30% terms, it's that there are no other "official" options as Apple only allows apps (and thus app contents) be obtained from them.

             

            Thus leaving vendors with no choice but to follow Apple's terms or go pound sand.    Which does smell of anti-competitive practice.