Apple Opens Door to Alternative App Stores But Fees and Strict Rules Seen as Barrier to Entry
• Apple announced new rules allowing third-party app stores, but critics say the strict requirements and fees seem designed to maintain their monopoly.
• An entrepreneur trying to launch an iPhone app store compares Apple's rules to extortion by mob bosses in The Godfather.
• Apple is requiring $1 million in reserves to open an iPhone app store, plus 50 cent fees per download over 1 million.
• App developers face fees up to 17% to sell on third-party iPhone app stores, incentivizing staying exclusive on Apple's store.
• Android phones have historically been more open to alternative app stores, but Google Play also charges similar 30% commissions.