More
    Mobile Google and Apple's app store duopoly may soon be...

    Google and Apple’s app store duopoly may soon be over

    -

    With their Operating systems virtually on every smartphone, Google Play store and Apple’s app store have dominated the world of mobile apps. For over a decade now, they have watched their monopolistic hold grow exponentially. However, this may soon change. More and more developers and publishers are growing uneasy of the oppressive “taxes” charged by these companies on app revenues; they are calling an end to that.

    Where it all started

    In August of this year, Epic Games; the maker of Fortnite, a hit multi-platform video game sued apple for anti-competitive behaviour. Epic Games accused the 2 trillion dollar company of taking advantage of its app store to impose exorbitant “taxes” on app developers. The company further explained in its Lawsuit that Apple asserted unlawful and unreasonable monopolistic barriers which prevented software developers from reaching the 1 billion user mark on their devices if they didn’t go through apple’s App store which charges whooping 30% of app revenues.

    What is Apple and Google’s take?

    Although Apple swiftly responded by blocking updates and new apps from fortnite, the lawsuit resonated with developers across these platforms. Many have long questioned Google and Apple’s basis for charging such fees calling them prohibitive and restraining. Apps with thin margins due to high royalty fees such as Netflix, Spotify and Disney find it hard to make a profit on these stores. Furthermore, new details about google and apple secretly making special deals with companies to waive charges recently emerged; Sparking outcry from other developers who largely view this as unfair.

    In their defense, Google and Apple insist that obtaining apps through their stores protects users from viruses, malware, scams and most importantly; Keep their payments safe. However critics have pointed out that just because one is uses their operating systems should confine them to using their app stores; There should be a degree of freedom to choose from other app vendors. Google and Apple through their systems make it hard for this to happen.

    Bottom Line

    Google and Apple generate billions of dollars worth of revenue every year from their app stores. In 2019 alone, Apple’s app store ecosystem generated $519 billion in revenue; 20% of that was from digital apps and services. Therefore, allowing developers to directly sell their apps without having to go through their stores could severely dwindle their revenues. However, in the face of backlash from developers and Antitrust concerns from Authorities, Apple and Google will soon have to address the issue. Whether this is done by restructuring app store charges and revenues or smoothing the process of buying apps from other vendors; Google and Apple are in for a big bite of their revenues!

    Faida Yves Moseshttps://clearvoice.com/cv/FaidaYvesMoses
    I am an economist, freelance writer and tech enthusiast. I love writing about Economics, Business and Tech; Breaking them down for readers to form informed perspectives about the world around them. Click on the website to book my writing gigs. If you enjoyed my article support my work by giving via PayPal Thank you!

    2 Comments

    Leave A Reply

    Please enter your comment!
    Please enter your name here

    New News

    Advertisers make a historic agreement with social media platforms...

    They have set a common definition of harassment.

    New WhatsApp feature lets you delete shared media immediately

    A new WhatsApp Feature will let you delete messages as soon as you leave the chat window, allowing you the ability to enhance your privacy.

    The Budget Phone with 90Hz Display and 65W Fast...

    With those features and that price, some of you might think that I have miss clicked but that's not the case. Realme announced its budget series Narzo 20.

    Trending This Week

    Google Discontinues Paid Chrome Extensions

    Google made an announcement recently that is discontinuing the paid Chrome extensions. Earlier this year Google suspended the paid extensions for a short time and now they are going to make that change permanent it seems.

    Snowflake records the largest ever software IPO

    The Warren Buffett backed software company has made software's largest ever IPO

    Advertisers make a historic agreement with social media platforms...

    They have set a common definition of harassment.

    You might also likeRELATED
    Recommended to you