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Location: Zoom
Date: Wednesday, 17th June
Project: Basecamp
Role: Founder & CTO

New concerns have been raised around Apple's business model after the company rejected future updates for Basecamp's newly launched email app Hey. Apple initially approved the app, but then put it on hold — meaning Basecamp couldn't submit any updates or bug fixes until it added an option for users to subscribe to Hey's service through an in-app purchase.

Basecamp has disputed this decision, saying it shouldn't be forced to allow users to sign up for Hey through in-app purchase, subjecting then to Apple's 30% tax on its subscription fee.

HEY's predicament has highlighted inconsistencies in Apple's policy execution, having allowed other apps with similar business models to exist in the App Store without mandatory in-app subscriptions. They have also made exemptions for streaming applications and rivals; Amazon and Netflix.

The case has raised questions about how Apple is operating and whether it's exercising an anti-competitive advantage over services from third-party developers.

HEY's fight comes as the company is already facing two EU antitrust investigations after Spotify and other firms filed similar complaints to those raised by Basecamp.

In this bonus episode, I talk to Basecamp Founder & CTO, David Hansson. We discuss Apple’s threats to remove their email app HEY from the App Store and Apple’s monopolistic business model.

00:02:25: Introductions 
00:03:42: Situation with Apple
00:08:09: Apple’s monopoly
00:13:43: Destroying innovation
00:14:45: Mac App Store
00:17:03: Advantages controlling the platform
00:20:44: EU investigation
00:24:19: Inconsistencies with Clause 3.1.1
00:26:56: Next steps
00:30:42: Final comments

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• Connect with David:

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• Connect with Basecamp

  • The Website

  • HEY

• Mentioned in the interview: 

  • Apple faces antitrust probes by European Commission over App Store and Apple Pay

  • Apple CEO Tim Cook says monopolies aren't bad if they aren't abused

  • Apple doubles down on controversial decision to reject email app Hey

  • Interview: Apple's Schiller says position on Hey app is unchanged and no rules changes are imminent

  • United States v. Microsoft Corp..

  • Why Did Microsoft Face Antitrust Charges in 1998?

  • How the antitrust battles of the ‘90s set the stage for today’s tech giants

  • Browser wars

  • Netscape: the web browser that came back to haunt Microsoft

  • Everything we know about Apple AirTags so far

  • Elizabeth Warren wants to break up Apple, too

  • August 6, 1997 — The day Apple and Microsoft made peace

• Other relevant WBD podcasts:

  • WBD171: Michael Goldstein on Rejecting All Forms of Activism

  • WBD150: Erik Voorhees on Understanding Libertarianism

  • WBD141 - Stephan Livera on Austrian Economics, Libertarianism and Bitcoin