A New Wrinkle in the Epic/Apple Battle

I came across this video today from an indie game developer. I'm putting it here for two reasons. First, there's some interesting emails from Epic to Valve that shows they were going after Apple well before the Fortnight fiasco. Second, as an indie developer, I thought he had an interesting point of view on the 30% cut.

 
So in an understatement the latest ruling didn’t go well for Apple … at all:



Welp, seems to me like Apple is going to have to sue everyone who sells apps outside the app store for patent infringement (as applicable).
 
I’m a little confused, patent infringement?

It’s essentially impossible to write an iPhone app without practicing at least some claim of some Apple patent. But Apple essentially grants you a license when you participate in the developer program, which makes sense because you are essentially paying for the use of the IP when you pay them their cut.

If you aren’t paying for the use of the IP, then Apple may as well sue you. Nothing in the court’s order strips apple of its intellectual property rights.
 
It’s essentially impossible to write an iPhone app without practicing at least some claim of some Apple patent. But Apple essentially grants you a license when you participate in the developer program, which makes sense because you are essentially paying for the use of the IP when you pay them their cut.

If you aren’t paying for the use of the IP, then Apple may as well sue you. Nothing in the court’s order strips apple of its intellectual property rights.
That’s not covered by the $99/year developer account fee? I would think they would just raise that price (didn’t it used to be $2000 20 years ago? which with inflation would be much more now), which would not be good for smaller businesses.
 
That’s not covered by the $99/year developer account fee? I would think they would just raise that price (didn’t it used to be $2000 20 years ago? which with inflation would be much more now), which would not be good for smaller businesses.

The Apple Developer License Agreement only covers apps which have been “selected and digitally signed for distribution by Apple.” No license if you distribute it yourself, by my quick reading. They also have to meet the “Program Requirements” (i.e. apple’s app store rules).

The $99 gets you access to the app store, the SDKs, etc., but doesn’t give you, by itself, a license to do whatever you want with Apple’s patented inventions.
 
It’s essentially impossible to write an iPhone app without practicing at least some claim of some Apple patent. But Apple essentially grants you a license when you participate in the developer program, which makes sense because you are essentially paying for the use of the IP when you pay them their cut.

If you aren’t paying for the use of the IP, then Apple may as well sue you. Nothing in the court’s order strips apple of its intellectual property rights.
Sure they could sue them, if they want to absolutely kill any developer interest in the iPhone.

Further, soooo many Apps already pay nothing to Apple for "using their IP" such as Amazon, Walmart, etc... I know I know, different terms for different app types, but that undermines the argument. If the argument is that monetized Apps need to pay for IP there is no justifiable reason why some monetized apps pay and others don't. The ones that don't pay make just as much use of Apple's IP as the ones that do.

Apple needs devs just as much as devs need Apple.

I have a thought experiment, suppose Apple sold an iPhone with 3rd party app support and one without 3rd party apps at the same price (after all, you and others claim the price of the phone doesn't include the IP). Since we are trying to compensate for value added to the platform, all devs on the one that supports 3rd party apps must pay Apple 30% of their revenue, however, Apple must also pay 30% of the revenue of all iPhones that support 3rd party apps to developers. This would be only fair and just after all, given how many more iPhones Apple sells thanks to 3rd party devs, and thus how much value they add to the platform...

Do you think that Apple would go for the above argument?

I know there are niggles, how do you quantify the people who bought the third party app supporting phone but never installed a third party app... etc... I am sure you could probably work that out if you really tried.

Edit: I am not saying Apple shouldn't be able to charge for its tooling infrastructure, however, I think if they were to really try and monetize it in a way that would pass regulatory scrutiny (that was equal and fairly applied) they could end up losing devs rather than retaining them, hurting their platform more than helping it.

Apple got to the position they are in today in part because the tools and SDKs were only $99/year, they were less expensive to develop for than the competition, these days the reverse is true and it is only Apple's market size that keeps devs on the platform.
 
Sure they could sue them, if they want to absolutely kill any developer interest in the iPhone.

Blah blah blah. Developers go where the money is.

Further, soooo many Apps already pay nothing to Apple for "using their IP" such as Amazon, Walmart, etc... I know I know, different terms for different app types, but that undermines the argument. If the argument is that monetized Apps need to pay for IP there is no justifiable reason why some monetized apps pay and others don't.
Strawman. Nobody said that monetized Apps need to pay for IP. But Apple is *entitled* to be paid if it chooses to. And it is *entitled* to choose who it wants to pay. It’s not the government - it’s allowed to discriminate.

Apple needs devs just as much as devs need Apple.

It doesn’t need devs who free-ride, don’t provide it revenue, and who undermine the value of its ecosystem by turning iOS into Android.

3rd party apps must pay Apple 30% of their revenue, however, Apple must also pay 30% of the revenue of all iPhones that support 3rd party apps to developers. This would be only fair and just after all, given how many more iPhones Apple sells thanks to 3rd party devs, and thus how much value they add to the platform...

How would that be fair? The developers are compensated by their monetization. They are using Apple’s intellectual property, and Apple deserves to be compensated for that - it’s in the U.S. Constitution, in fact.
 
Not a lawyer and have no strong feelings either way with this, but as someone who has used an iPhone since the first model, it’s worth remembering that people were queuing up to buy one before the App Store was even a thought in someone’s mind.
 
Blah blah blah. Developers go where the money is.
Blah blah blah. Developers go where they can make money, not where they will lose it. If Apple starts suing devs who don't pay them devs are going to be very hesitant about building for iOS.

Strawman. Nobody said that monetized Apps need to pay for IP. But Apple is *entitled* to be paid if it chooses to. And it is *entitled* to choose who it wants to pay. It’s not the government - it’s allowed to discriminate.
I don't think it is going to be allowed to discriminate much anymore, this judge, the EU, Japan, etc... are all starting to coalesce around requiring Apple to behave in a more fair and equal manner.

Smartphones are important devices that are ubiquitous and it is assumed by almost everything that you have a smartphone. Parking lots around where I live are starting to require an app just to park. Smartphones are so commonplace that they are more like a utility/essential good than a luxury. I don't know if this is a good thing, in fact it probably isn't, but as long as society continues to build out services on the assumption that everyone has a smartphone then I expect that governments will begin to regulate the way they control access to the phones.

It doesn’t need devs who free-ride, don’t provide it revenue, and who undermine the value of its ecosystem by turning iOS into Android.
So they should require all devs to give them a cut then? Amazon Kindle gets kicked out of the store if they don't start offering in-app ebook purchases using apple's IAP? We can expect to see you advocating for removal of Uber, Lyft etc... so long as those apps keep freeloading?

How would that be fair? The developers are compensated by their monetization. They are using Apple’s intellectual property, and Apple deserves to be compensated for that - it’s in the U.S. Constitution, in fact.
It would be fair because, as my thought exercise posited, Apple wouldn't have made those sales without third party devs. Why should Apple free ride on the hard work of developers whose apps are what drive those extra iPhone sales?

You (and Apple) seem to think this isn't a symbiotic relationship, that Apple is the only one adding value to the platform and devs are freeloading if they don't pay Apple for the privilege of being able to build apps for the platform. I disagree, the platform would be far less valuable, and Apple would sell far fewer iPhones without 3rd party app support.
 
You (and Apple) seem to think this isn't a symbiotic relationship, that Apple is the only one adding value to the platform and devs are freeloading if they don't pay Apple for the privilege of being able to build apps for the platform. I disagree, the platform would be far less valuable, and Apple would sell far fewer iPhones without 3rd party app support.

The simple fact that Microsoft wasn't able to build this particular symbiotic relationship was a key reason Windows Phone failed (there's a lot of details on why it didn't happen, which includes things like coming in late to the market/etc).
 
Blah blah blah. Developers go where they can make money, not where they will lose it. If Apple starts suing devs who don't pay them devs are going to be very hesitant about building for iOS.
They wouldn't be hesitant about building for iOS. They would be hesitant about building for iOS *outside Apple's App Store*. Which is precisely what Apple wants.

So they should require all devs to give them a cut then? Amazon Kindle gets kicked out of the store if they don't start offering in-app ebook purchases using apple's IAP? We can expect to see you advocating for removal of Uber, Lyft etc... so long as those apps keep freeloading?
They can require all devs to give them a cut. But for some apps (ie Kindle) it's just too difficult to estimate what that cut should be without going app by app. So those kinds of apps pay nothing instead.

You (and Apple) seem to think this isn't a symbiotic relationship, that Apple is the only one adding value to the platform and devs are freeloading if they don't pay Apple for the privilege of being able to build apps for the platform. I disagree, the platform would be far less valuable, and Apple would sell far fewer iPhones without 3rd party app support.
I don't think anyone is disagreeing that the platform would be far less valuable without 3rd party developers. Hell, the platform probably wouldn't even exist without 3rd party developers. But that doesn't mean that both sides equally need each other, or that both sides add equal value.

Imagine Apple starts investing twice as much next year on providing better APIs that developers can use, saving 3rd party devs lots of time (and money!) by reducing the effort needed to develop applications. Wouldn't developers be getting a better deal then? If so, shouldn't Apple be entitled to charge more for these improved APIs?

Imagine the opposite happens, and Apple stops investing in improving the SDK, placing all APIs in maintenance mode. Wouldn't developers be getting a worse deal than they currently have now? If so, shouldn't developers be entitled to pay less?

I'm not saying the 30% Apple charges is the right amount, or that their model isn't flawed. But they should be able to charge developers for using their IP if they want to, while the general argument appears to be that devs should be able to use all Apple technologies for free ever because they also add value to the platform.

For example, if Apple were to switch were a model were you can get on the App Store for free but only get access to the lowest levels of their technology stack (ie: no AppKit/UIKit), and require complying with the App Store policies to be able to use those frameworks, that'd also be seen as anticompetitive, because the effort to build an UIKit/AppKit equivalent for your app would cost so much more than the 30% cut Apple takes.
 
They wouldn't be hesitant about building for iOS. They would be hesitant about building for iOS *outside Apple's App Store*. Which is precisely what Apple wants.
It depends on what you think this means, I was interpreting this as Apple starts suing devs who only offer links to the web for payment but are still in the App Store. If they did that then they would likely become hesitant to develop for Apple platforms.

However it looks like Apple has already updated the rules and is going to allow link out, though they are still requiring devs offer an IAP option alongside the web price.

They can require all devs to give them a cut. But for some apps (ie Kindle) it's just too difficult to estimate what that cut should be without going app by app. So those kinds of apps pay nothing instead.
Oh no it isn't, Apple could easily have required Kindle to offer IAP from day one or not let it in the store. Apple decided that it was better for the platform not to try and take a cut and have Kindle than to actually try and earn a cut.

I don't think anyone is disagreeing that the platform would be far less valuable without 3rd party developers. Hell, the platform probably wouldn't even exist without 3rd party developers. But that doesn't mean that both sides equally need each other, or that both sides add equal value.

Imagine Apple starts investing twice as much next year on providing better APIs that developers can use, saving 3rd party devs lots of time (and money!) by reducing the effort needed to develop applications. Wouldn't developers be getting a better deal then? If so, shouldn't Apple be entitled to charge more for these improved APIs?

Imagine the opposite happens, and Apple stops investing in improving the SDK, placing all APIs in maintenance mode. Wouldn't developers be getting a worse deal than they currently have now? If so, shouldn't developers be entitled to pay less?
I think equal value is still a fairer assessment (especially given that you admit that iOS wouldn't have succeeded without third party devs) which is why I think they shouldn't charge for API access. Primarily because devs and Apple both benefit from the relationship. If Apple cuts spending in APIs well, devs will deprioritize the platform and focus on other platforms, hurting Apple. If they invest more then there will be more dev prioritization of the platform. Apple has an incentive to provide APIs to devs.

I would argue that the rise of electron and web apps is partially because Apple's APIs have been degrading in recent years. I personally have no motivation to use SwiftUI on the Mac and wish they had instead modernized and improved AppKit or actually done a better job with UIKit Catalyst.

I'm not saying the 30% Apple charges is the right amount, or that their model isn't flawed. But they should be able to charge developers for using their IP if they want to, while the general argument appears to be that devs should be able to use all Apple technologies for free ever because they also add value to the platform.
There are two issues I take, the first, I don't like the erosion of personal property rights and empowering of corporate property rights. I bought the phone, the phone already has the APIs on it, Apple already got paid to develop iOS when I bought the phone.

Now while that is my ideal world, I do think there is a reasonable way to charge for the IP, which brings me on to the second thought: I think iOS is in a dominant enough position that the IP charge should be FRAND-ish, it should be a flat fee. More like the CTF in the EU but still more universal in that they wont be able to offer one set of terms with the CTF and one set of terms without it. The only distinctions that make sense for IP licensing are whether the app is truly free or is in any way monetized (including ads). Anything else is not particularly FRAND-ish and while Apple is a private business smartphones are now more important than PCs and are IMO reaching the point where they have a dominant enough position to be regulated in a FRAND-ish manner.

For example, if Apple were to switch were a model were you can get on the App Store for free but only get access to the lowest levels of their technology stack (ie: no AppKit/UIKit), and require complying with the App Store policies to be able to use those frameworks, that'd also be seen as anticompetitive, because the effort to build an UIKit/AppKit equivalent for your app would cost so much more than the 30% cut Apple takes.

If Apple let third party frameworks replace UIKit I doubt those frameworks would charge 30% of revenue, but maybe they would. Apple should absolutely NOT do this, this would lead to the undermining of their OS and their ability to keep devs on the platform. If there is a native third party UI framework that is available on iOS and Android OS that will ultimately erode the platform more than help it.
 
For example, if Apple were to switch were a model were you can get on the App Store for free but only get access to the lowest levels of their technology stack (ie: no AppKit/UIKit), and require complying with the App Store policies to be able to use those frameworks, that'd also be seen as anticompetitive, because the effort to build an UIKit/AppKit equivalent for your app would cost so much more than the 30% cut Apple takes.

That would be very bad, though. I once tried a popular Windows search tool (20 years ago, VPC) and it was aesthetically hideous. The colors of the UI elements were painful. The app worked well enough (notwithstanding the VPC penalty), but it was unpleasant to look at. And there was that thing with the suite of plugins for Photoshop that had some weird-ass widget design that was well outside the bounds of Apple's HIG. A model where devs would have to gin up their own UI would seriously damage the user experience and corrupt the standardized macOS/iOS environment. (And, yes, there are things in iOS that annoy the heck out of us, like all the slidiness, but at least it is broadly consistent.)
 
I would argue that the rise of electron and web apps is partially because Apple's APIs have been degrading in recent years. I personally have no motivation to use SwiftUI on the Mac and wish they had instead modernized and improved AppKit or actually done a better job with UIKit Catalyst.

Hard disagree. The rise is because bean counters and managers saw the "write once, run everywhere" nature of doing Javascript in everything that they couldn't stop salivating at a possible answer to the problem of "we need more development teams to target more platforms". It's infested Mobile with React Native and its ilk. Least common denominator development has been a thing for longer than I've been in the industry.

"Why hire an Android or iOS developer when I can hire more plentiful JS developers to build the same thing?" has been a thing long before Apple went into the mode of "fix one thing, break another", and has basically eaten much of the development on these platforms that get real budgets.
 
Hard disagree. The rise is because bean counters and managers saw the "write once, run everywhere" nature of doing Javascript in everything that they couldn't stop salivating at a possible answer to the problem of "we need more development teams to target more platforms". It's infested Mobile with React Native and its ilk. Least common denominator development has been a thing for longer than I've been in the industry.

"Why hire an Android or iOS developer when I can hire more plentiful JS developers to build the same thing?" has been a thing long before Apple went into the mode of "fix one thing, break another", and has basically eaten much of the development on these platforms that get real budgets.
I left this out but I am not at all happy with SwiftUI as a dev. Nor have I been happy with the direction Swift has taken over the last few years. Swift has become an incredibly complex language because rather than build new things as library's or frameworks they keep just making the language itself have to do more and more and more.

I am leaning towards a JS React app for my next project partially because I am tired of Apple's ever worsening UI decisions in their native frameworks. If I am going to have to basically rewrite the UI anyway (to actually offer the discoverability, and ease of use I want) then why bother building on Apple's buggy mess?
 
Oh no it isn't, Apple could easily have required Kindle to offer IAP from day one or not let it in the store. Apple decided that it was better for the platform not to try and take a cut and have Kindle than to actually try and earn a cut.
It is more difficult than that. There are entire categories of apps where the 30% cut wouldn’t be a cut of the developers’ revenue. Should Apple get a 30% cut of a TV you purchase on Amazon? Well, obviously not. Something like Kindle? Well, probably not, but it’s not as obvious. It’s not a physical product, but it’s still a product that just happens to be purchased through an app in the store. Unlike, say, a one-time-purchase mobile game.

I think equal value is still a fairer assessment (especially given that you admit that iOS wouldn't have succeeded without third party devs) which is why I think they shouldn't charge for API access.
Many different players contributed to the iPhone success, that doesn’t mean that the contribution was equal, even if it was necessary. Silly analogy: when I wrote my BSc thesis I used a bunch of Apple technologies (SceneKit, Swift, Metal…), and it wouldn’t have been possible for me to write it without using Apple technologies. Yet it wouldn’t be a fair assessment that Apple and I both contributed equally to my thesis, just because Apple’s technologies were instrumental.

If Apple cuts spending in APIs well, devs will deprioritize the platform and focus on other platforms, hurting Apple. If they invest more then there will be more dev prioritization of the platform. Apple has an incentive to provide APIs to devs.
Decision on which platform to prioritize is rarely based on the technical excellence of the platform, although it does factor into the equation. Just not as much as you think (in my experience, at least).

More importantly, if apps no longer need to pay Apple anything to use their APIs, you’re right that Apple still has an incentive to improve the APIs (as it indirectly results on more iPhone sales) but they have an even bigger incentive to simply release competing apps (which I assure you no developer wants). That way, the customer gets the same value (an app that does XYZ) and Apple gets some revenue back again.

Apple may be comfortable with the 30% cut now, but if the cut starts being 0%, that’s a huge reason for Apple to keep APIs internal and release competing 1st party apps.

I would argue that the rise of electron and web apps is partially because Apple's APIs have been degrading in recent years. I personally have no motivation to use SwiftUI on the Mac and wish they had instead modernized and improved AppKit or actually done a better job with UIKit Catalyst.
There’s not been a single time where I’ve seen this pitched and it hadn’t been simply to save money. And I’ve seen attempts to do this in every company I’ve worked at as an iOS dev. It’s always the money. Even if it results in terrible UX.

If Apple let third party frameworks replace UIKit I doubt those frameworks would charge 30% of revenue, but maybe they would. Apple should absolutely NOT do this, this would lead to the undermining of their OS and their ability to keep devs on the platform. If there is a native third party UI framework that is available on iOS and Android OS that will ultimately erode the platform more than help it.
Maybe not as a percentage of revenue, but I’ve seen 3rd party frameworks (not UI frameworks) charge significant amounts per app installation.

My point however is that the vast majority of devs would go with Apple’s frameworks. It’s not feasible to replace them and just roll your own solution or find a suitable 3rd party framework, that would be way more costly than the 30% cut, and the only reason behind trying to get rid of this 30% cut is money.
 
It is more difficult than that. There are entire categories of apps where the 30% cut wouldn’t be a cut of the developers’ revenue. Should Apple get a 30% cut of a TV you purchase on Amazon? Well, obviously not. Something like Kindle? Well, probably not, but it’s not as obvious. It’s not a physical product, but it’s still a product that just happens to be purchased through an app in the store. Unlike, say, a one-time-purchase mobile game.
For the TV, why obviously not? If I bought the TV as an impulse while on the go then perhaps if I had had to wait to get to my computer I wouldn't have bought it. You can come up with all sorts of scenarios where these companies that sell physical goods are benefitting from having Apps.
Spotify the 30% is coming out of not just Spotify's revenue but also the amount they pay artists.

The 30% cut is a cut of creators revenue in the Patreon App, that did not stop Apple from forcing IAP on Patreon.
It is becoming clearer over time and the degree to which Tim Cook is fighting these changes that this is not about compensation for IP but about protecting services revenue which helps artificially prop up the stock price.

If Apple was providing better services that customers were actually wanting to pay for they wouldn't have to keep squeezing App Devs to try and prop up the services revenue stream.

Many different players contributed to the iPhone success, that doesn’t mean that the contribution was equal, even if it was necessary. Silly analogy: when I wrote my BSc thesis I used a bunch of Apple technologies (SceneKit, Swift, Metal…), and it wouldn’t have been possible for me to write it without using Apple technologies. Yet it wouldn’t be a fair assessment that Apple and I both contributed equally to my thesis, just because Apple’s technologies were instrumental.
Should you have had to pay Apple to obtain your thesis then? Would you have willingly paid 30% of your tuition to Apple for access to SceneKit/Metal/Swift in order to complete it? You were able to gain credentials (that likely helped in future job applications) by building off of Apple's IP without paying Apple anything, why do they not deserve compensation?

This is the problem with trying to tie the IP compensation to a commission and why a fairer version of the CTF would be a superior choice if you were really trying to get compensated for IP.

Would you buy an iPhone without third party apps?
I wouldn't but thats just me, which is why I think Apple is undervaluing the contribution of third party devs to the iPhones success.

Decision on which platform to prioritize is rarely based on the technical excellence of the platform, although it does factor into the equation. Just not as much as you think (in my experience, at least).

More importantly, if apps no longer need to pay Apple anything to use their APIs, you’re right that Apple still has an incentive to improve the APIs (as it indirectly results on more iPhone sales) but they have an even bigger incentive to simply release competing apps (which I assure you no developer wants). That way, the customer gets the same value (an app that does XYZ) and Apple gets some revenue back again.
Part of my complaint with this line of reasoning is that most big devs already pay nothing (other than the annual dev fee) to use Apple's APIs, its really only games and smaller devs who are funding this because they don't have the budget to advertise and go cross platform. For smaller devs I actually think the 15% cut makes perfect sense, use the Apple IAP system and save yourself the money of implementing it yourself.

However, some small-ish devs that want to be cross platform are not allowed to use something like Stripe to process payment because they aren't big enough to have gotten an exemption category created especially for them like Netflix or Spotify have. Again, I'll bring up Patreon because they clearly are a cross platform app that should be exempt from being required to offer IAP but aren't.

Apple may be comfortable with the 30% cut now, but if the cut starts being 0%, that’s a huge reason for Apple to keep APIs internal and release competing 1st party apps.
Sure, and they will then get hit even harder in the EU for anti-competitive practices. So long as Apple's APIs are the only way to release for the iPhone (ReactNative and game engines are built on top of UIKit/Metal and so still use Apple's APIs internally), they are going to have to worry about regulation.

There’s not been a single time where I’ve seen this pitched and it hadn’t been simply to save money. And I’ve seen attempts to do this in every company I’ve worked at as an iOS dev. It’s always the money. Even if it results in terrible UX.
That's fair and I'll concede that money does play a role.
I would say it's a bit of both money and API quality.
Apple's failings on UX in recent years means that some of the clients I work with have been pushing for more custom UI across their Apps and they are wondering why they are paying for a native App when we have to spend so much money replacing Apple's UX anyway. If we could just use a SwiftUI Button without customization sure it would be worth the time savings but we have to write just as much code to customize it as we would for a web app.
For example, I've had a client who absolutely hates how the Sidebar on iPad behaves in SwiftUI and UIKit these days, the way triple column is clumsy and hard to adapt, etc... so we ended up rolling our own sidebar/splitview system because it provided a much better UX than Apple's, if we have to do that sort of thing anyway, how beneficial are Apple's APIs really?

Maybe not as a percentage of revenue, but I’ve seen 3rd party frameworks (not UI frameworks) charge significant amounts per app installation.

My point however is that the vast majority of devs would go with Apple’s frameworks. It’s not feasible to replace them and just roll your own solution or find a suitable 3rd party framework, that would be way more costly than the 30% cut, and the only reason behind trying to get rid of this 30% cut is money.
If you could replace UIKit and Swift UI at the platform level then that incentivizes third party, cross platform UI frameworks that would undermine the power of Apple and Google.
For example, Microsoft could build something that allowed a low level replacement of UIKit/SwiftUI and also JetpackCompose and then sell it to both or even give it away to undermine Apple and Google.
If Apple and Google had allowed this low level replacement from day 1 it is possible Microsoft Phone could have succeeded by convincing more people to build cross platform.
 
The 30% cut is a cut of creators revenue in the Patreon App, that did not stop Apple from forcing IAP on Patreon.
If it helps I do not think Patreon should be paying the 30% cut, for the same reason I don’t think the 30% cut should apply to physical products.

Part of my complaint with this line of reasoning is that most big devs already pay nothing (other than the annual dev fee) to use Apple's APIs, its really only games and smaller devs who are funding this because they don't have the budget to advertise and go cross platform.
Oh this is just not true. The vast majority of the App Store 30% cut revenue comes from developers making more than $1M/year. Small and indie devs barely make a dent in that AFAIK. It’s true that some get away by moving the payment system outside the store, but they’re still footing the bill for the small indie devs.

Should you have had to pay Apple to obtain your thesis then?
Other thesis did use proprietary software that costed money (ie Mathematica, PyMOL, the Adobe suite…). This is not something unusual. I wouldn’t have paid out of pocket but the university would have.

You were able to gain credentials (that likely helped in future job applications) by building off of Apple's IP without paying Apple anything, why do they not deserve compensation?
They do. It’s just that they chose not to ask for any compensation as long as I’m not making any commercial product out of it. This is again quite a common approach to licensing.

Sure, and they will then get hit even harder in the EU for anti-competitive practices.
Why would they be hit by EU anti-competitive practices for releasing a competing app? As long as they don’t bundle it with the OS or give it access to hardware 3rd party apps don’t have access to, it’s fair game. But any high level frameworks built on top of that? They can’t be forced to give those away. What you’re asking is for Apple to fund the IP required to easily build commercially successful projects without getting any money out of it except for the indirect increase in hardware sales. But there’s no legal basis for such a cap in where the revenue can come from.

Say for example Procreate chose to switch to a model where Apple got no cut in the revenue. Why can’t Apple release a competing drawing app, and have engineers working on that app instead of in, let’s say, improving PencilKit for everyone? 3rd parties can build their frameworks on top of the minimal low level stuff Apple provides to directly access the hardware.

If you could replace UIKit and Swift UI at the platform level then that incentivizes third party, cross platform UI frameworks that would undermine the power of Apple and Google.
For example, Microsoft could build something that allowed a low level replacement of UIKit/SwiftUI and also JetpackCompose and then sell it to both or even give it away to undermine Apple and Google.
If Apple and Google had allowed this low level replacement from day 1 it is possible Microsoft Phone could have succeeded by convincing more people to build cross platform.
You can replace UIKit and SwiftUI, other than very minimal stuff such as the app lifecycle methods (and probably you can get around the need for that too). In fact as far as I know there are technologies out there such as Flutter that have their own renderer and mostly don’t use UIKit/AppKit/SwiftUI for that. There’s really nothing forbidding a 3rd party company from building such a thing.
 
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