Apple and Google app stores under fire over high tax collection
Increasing complaints about app store costs, as well as regulatory scrutiny and rivals’ pressure, may undermine these gold mines for the two tech giants
San Francisco/Los Angeles — A backlash against Apple and Google app stores is gaining steam, with a growing number of companies saying the tech giants are collecting too high a tax for connecting consumers to developers’ wares. Netflix and video game makers Epic Games and Valve are among companies that have recently tried to usurp the app stores or complained about the cost of the tolls Apple and Google charge. Grumbling about app store economics isn’t new. But the number of complaints, combined with new ways of reaching users, regulatory scrutiny and competitive pressure are threatening to undermine what have become digital gold mines for Apple and Google. "It feels like something bubbling up here," said Ben Schachter, an analyst at Macquarie. "The dollars are just getting so big. They just don’t want to be paying Apple and Google billions." Apple and Google launched their app stores in 2008, and they soon grew into powerful marketplaces that matched the creations of millions of in...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.