Question: Apple iOS and Google's Android OS represent a duopoly in the smartphone operating system market. Epic Games complain that two firms' app stores are monopolies.

  1. Apple iOS and Google's Android OS represent a duopoly in the smartphone operating system market. Epic Games complain that two firms' app stores are monopolies. How is that possible?
  2. Apple launched their App Store well before Google entered the smartphone market. Google charges the same 30 percent fee as Apple. Explain why Google does not simply lower their fee to lure clients away from Apple.
  3. A 30 percent fee is a very large share of revenue, particularly for small start-up firms. Why might app developers be willing to pay that to get access to app stores. That is, what value do Apple and Google add that would warrant such a fee?
  4. Do you think Apple is misusing its power to quash competition? Why or why not? Join the conversation below.
  5. If Apple is found to be engaging in "anticompetitive conduct," as Epic Games alleges, what remedies are available?
  6. Provide an update on this case. That is, has this case been resolved. If yes, what was the resolution. If not, give an update on the status of this case.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!