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Apple would be better off taking a 10% discount on apps: Bill Garley



Benchmark’s Bill Garley said on Tuesday that Apple was in trouble years ago when it introduced its 30% app-acceptance rate in apps, a figure that has come under greater scrutiny.

“I would always prefer a company to have a lower rake and a very long sustainable future, and I thought the 30% number was so high and so delightful that you would tune in to the exact level of difficulty you have right now. “said Garley, who led the company ‘s investments in companies such as GrubHub and Zillow, in an interview with CNC̵

7; s TechCheck.

For years, Apple has taken 30% of purchases of software or digital goods from apps distributed through the App Store. But developers say Apple’s App Store platform is unfair to smaller companies, and last year Apple cut the commission to 15 percent for apps with less than $ 1 million in annual net sales on its platform. Most recently, Epic Games sued Apple and claimed in court that the company’s App Store was anti-competitive.

Apple has denied the allegations, saying “there is no dominant market share in any category in which we do business.” In response to the complaint, Apple claims to have built the App Store and is able to set rules that are designed to ensure that applications are high quality and secure.

“I think it was a bad decision then and it was hard to recover. I think it would be best to just pick something like 10 and take it down for everyone,” Garley said.

Still, it’s a problem that could have been avoided, Garley said.

“If you started with a lower rake and were somehow fair, you wouldn’t be in this mess,” Garley said.

The tech investor has long said Apple has taken too much, criticizing the company in a 2013 blog post called “A Rake Too Far: Optimal Platform Cricing Strategy.”

“Most venture capitalists encourage entrepreneurs to maximize prices, to extract as much rent as possible from their ecosystem in every transaction. This is probably short-sighted. There is a big difference between what you I can extract against what you need to extract. The water is flowing down, “Garley wrote in 2013.

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