![]() ![]() He also is forbidden to even simply inform customers that there's still a small shop on an internet website, besides Apple's App Store, where you can get the CD for much cheaper. This means the original creator can't compete in a fair and equal way. The product is 30% cheaper, because the shop owner obviously doesn't have to pay a 30% rate to himself. Suddenly, the shop owner (=Apple) also creates its own CD: different cover, same music. So what does the creator of this CD do? He reluctantly agrees to the terms. The creator of the same CD is now basically forced to go through this one shop, because if he doesn't than he'll directly lose access to at least hundreds of millions of customers. On iPhone, there's just one gigantic shop (Apple's App Store). He'll lose the ability to sell his CD in just one shop, but that won't materially impact his/her business. If the creator of the CD (let's call him Spotify) doesn't agree with the terms of one shop (let's say a 15%-30% revenue cut), than the creator (=Spotify) could still sell his CD in dozens, hundreds or even thousands of different shops. ![]() There will be a few bigger chains, but generally, not a single shop has an extreme amount of power. ![]() In the real, physical world, there is an extremely wide variety of shops. Click to expand.I get where you are going, but I believe you're not making a good comparison. ![]()
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