That would also allow for more competition based upon price.

Why do people in lower-cost countries need to use the stripped-down "free" version of a California or New England app, when they could get a premium Turkish, Thailand, or Nigerian clone for a pittance?

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So long as the American and European apps are subsidized, developers in other countries have an uphill battle.

And, no, the answer is not "give them subsidies, too". The answer is more free market.

That is always the correct, long term answer.