Elon Musk has expressed his thoughts about the high app store fees due to the iOS/Android duopoly. He stated that it is a hidden 30% tax on the internet.
Google Play Store and Apple Play Store can Charge as High as 30% for Apps that are Just Listed on the Platform
Only some people know how much Google Play Store and the Apple App Store make from applications on their platforms. The charge can go as high as 30% for just being listed on the platform.
To explain, these platforms are not responsible for creating the apps; they just list the apps for people to download more conveniently. Google Play Store and Apple App Store do have their set of requirements.
Benefits of Being Listed on the App Stores
Aside from the visibility, the benefit of listed apps on the Google Play Store or Apple App Store is security. Since most apps have been vetted, there is a lower risk of downloading a bad file.
However, bad apps still get through the company's metrics every once in a while. Some developers have called for these app markets to lower their taxes on applications.
Google Allegedly Paid Activision Blizzard $300 Million to Not Make Its Own App Store
A piece on Slashdot was recently shared to Twitter sharing how Epic Says that Google had paid millions to Activision to stop it from launching a rival app store. It stated that Google paid $300 million to Activision Blizzard as part of a broad agreement just so that the gaming giant won't create its own app store, as per CNET.
In an unredacted filing, Epic noted that Google had done the same to other developers. Epic shared the agreement with Tencent, the Chinese company that owns Riot Games, giving it around $30 million over one year.
Google and Activision Denied the Allegations
The deal was part of the agreement for Riot to maintain its games powered by Google and spend money promoting them as part of Android. Both Google and Activision denied Epic's allegations regarding competing app stores.
The article was shared on Twitter, to which Elon Musk replied that app store fees are "obviously too high," and this was due to the duopoly between iOS and Android. He noted that the fees are a hidden 30% tax on the internet.
App store fees are obviously too high due to the iOS/Android duopoly.
— Elon Musk (@elonmusk) November 19, 2022
It is a hidden 30% tax on the Internet.
Meta's Mark Zuckerberg Also had Something to Say About the High Fees
An article by Business Insider said that Elon Musk was not the only one against the high fees charged by these app stores. The article cited an August 2020 BuzzFeed News report.
The report shared that Meta's Mark Zuckerberg held a companywide meeting regarding Apple having a "stranglehold as a gatekeeper on what gets on phones," saying it charges "monopoly rents." The report came after Apple refused their request to reduce the 30% fee on a new paid feature that Facebook said would help struggling businesses grow in the pandemic.
Related Article: Google Play Store Will Now Prompt You to Install an Update If an App is Crashing
This article is owned by Tech Times
Written by Urian B.
