South Korean legislators urge Google to follow Apple's lead and cut app store fees

Posted:
in General Discussion
Just days after Apple cut its App Store fees for most developers, a group of seven South Korean lawmakers is asking Google to do the same in the Google Play Store for in-app purchases.

Credit: Google
Credit: Google


Apple on Wednesday announced a new program, set to go into effect Jan. 1, that would cut App Store commissions to 15% for developers and businesses paid less than $1 million per year. Currently, Apple and Google charge a standard rate of 30% on in-app purchases.

On Thursday, a group of South Korean legislators from the country's People Power Party called on Google to follow Apple's lead and do the same on the Google Play Store, according to the Yonhap News Agency.

"Apple's policy to halve its commission is well-timed. We urge Google to reduce its commission for small app developers to below 15 percent to boost South Korea's app ecosystem," the lawmakers said in a statement.

The Mountain View search giant recently came under scrutiny for announcing that it would require all app developers to use its own billing system and give up 30% cut of in-app purchases starting October 2021. In response, lawmakers in South Korea have mulled legislation that would limit Google and other app store operators from imposing certain payment method restrictions.

Apple has come under fire for similar policies in its own App Store guidelines. The company doesn't allow outside payment methods within apps hosted on the App Store. Back in August, "Fortnite" creator Epic games attempted to bypass those guidelines, prompting Apple to remove "Fortnite" from the App Store and sparking an ongoing legal battle between the two companies.

Comments

  • Reply 1 of 11
    mcdavemcdave Posts: 1,756member
    I guess circumventing in-app purchases & subscriptions will help developers fly below that $1m threshold.
    watto_cobra
  • Reply 2 of 11
    Apple can probably afford it, but can Google? They’ve been making all kinds of changes to their monetization efforts on YouTube and other traditionally money-losing businesses. I doubt they’ll go for such a change.
    watto_cobra
  • Reply 3 of 11
    wood1208wood1208 Posts: 2,545member
    Google don't have to if don't see business needs or fits into their strategy. Though glad Apple did for smaller developers but Epic is too big arrogant so don't let it get off the hook with any concession.
    watto_cobra
  • Reply 4 of 11
    gatorguygatorguy Posts: 23,171member
    @SpamSandwich ;Could Google afford to? Of course they could. Factually they have more free cash than Apple last I checked. Will they? I'd be fairly certain they will, and soon.
    muthuk_vanalingam
  • Reply 5 of 11
    BeatsBeats Posts: 2,531member
    This is funny. iKnockoff users are poor and spend less money. This will hurt Google.

    But just because Apple does something, doesn't mean everyone else has to follow, that's ridiculous.
  • Reply 6 of 11
    Beats said:
    This is funny. iKnockoff users are poor and spend less money. 
    Well that’s an interesting assumption. I know well off programmers who have Samsung phones because they don’t like “Apple”
    muthuk_vanalingam
  • Reply 7 of 11
    App sales revenue on Google's Play Store is a fraction of Apple's App Store, so Google dropping its commission to 15% should have LESS effect on Google than Apple. As a developer for both platforms, I'm on the verge of abandoning Android for my US-focused apps anyway. There's VERY little money coming in from US Android users. I'm surprised Samsung still has so much US market share the way Android app revenue is drying up.
    watto_cobra
  • Reply 8 of 11
    Beats said:
    This is funny. iKnockoff users are poor and spend less money. 
    Well that’s an interesting assumption. I know well off programmers who have Samsung phones because they don’t like “Apple”
    I have several family members who own other Apple products, but for some reason they prefer Android phones. This has never made sense to me.
    watto_cobra
  • Reply 9 of 11
    Well that’s an interesting assumption. I know well off programmers who have Samsung phones because they don’t like “Apple”
    Out of curiosity, what types of apps and what is their target audience? For me, Android app revenue is tanking.
    watto_cobra
  • Reply 10 of 11
    gatorguygatorguy Posts: 23,171member
    narwhal said:
    Well that’s an interesting assumption. I know well off programmers who have Samsung phones because they don’t like “Apple”
    Out of curiosity, what types of apps and what is their target audience? For me, Android app revenue is tanking.
    Could be your apps. ;)

    AI had a recent article where it's indicated Play Store revenue is growing faster than the App Store. In addition neither one is hurting in that revenue department:
    Citing preliminary estimates from its own Store Intelligence solution, Sensor Tower reports consumer spending on in-app purchases, subscriptions and one-time app purchases rose to $19 billion globally on the App Store, up 31% year-over-year. By comparison, Google's Play Store grew 34% over the same period to net $10.3 billion.

    If you were going to compare the two in just the US the revenues would be closer together. A lot of the App Store money is coming from China where I assume you have no presence. 
    edited November 2020
  • Reply 11 of 11
    We don't know Google's margin on these 30%. Though, to be fair, neither Apple's. But what if Google's margin is much smaller than Apple's. Then it might be a wrong business decision to cut the fee.

    P.S.
    It is still dumb to 'urge'. The market forces will decide.

    watto_cobra
Sign In or Register to comment.