Why Apple and Google App Store Monopoly May End Soon

New rules for mobile app stores can trigger a wave of creative and cheap apps with more privacy options for users. All up-and-coming developers dream of becoming viral and creating apps that make a lot of money overnight. The Angry Birds game became a global phenomenon within a few weeks of its launch in 2009, earning US $ 10 million (£ 8 million) in its first year.

But overall, the numbers reveal that mobile apps don’t guarantee wealth. According to a 2021 survey, only 0.5% of consumer apps are commercially successful. Developers need to draw attention among the approximately 3 million apps and games on Google Play and the 4.5 million apps and games on the Apple Store.

On Apple’s iPhone and iPad platforms, the App Store is the only way to distribute apps. Until recently, Apple and Google stores charged a 30% commission. However, after lawsuits such as 2020, when video game company Epic Games claimed that Apple had an illegal monopoly on the market, most independent app developers and small businesses both halved it.

Epic Games lost, but Apple was subject to pending App Store changes. Both Epic Games and Apple are fascinating. Epic Games has filed a similar proceeding against Google, which will be tried in 2023. The app store sets rules about privacy, security, and the types of apps you can create.

Third-party stores can set various rules that allow them to be more relaxed and retain more money from the apps that developers sell.

You were shear locked

Independent developers say they are sometimes “sherlocked” by Google and Apple. They develop the app, and shortly thereafter, the platform incorporates the functionality of the app into the operating system itself, killing the developer’s product.

Making money from developing mobile apps is not as easy as you might think.
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FlickType was developed in 2019 as a third-party keyboard for iPhone and Apple Watch.Shortly thereafter, Apple told developers that the keyboard for the Apple Watch was prohibitedThey announced the features themselves.

It can take 3-9 months to develop an app, and it can cost US $ 40,000- $ 300,000 to create a minimal viable product. Some apps take longer to develop than this.

In 2021, a group of UK-based developers filed a £ 1.5 billion class action proceeding against Apple over store fees. The case will be heard in England.

The European Commission has told Apple that it can’t tell users about cheaper alternative apps due to abuse of its position in the music streaming industry, distorted competition, and restrictions on app developers.

For example, when Apple creates music apps, rivals such as Spotify claim this is unfair. They have to pay 15% or 30% of their revenue to their rival Apple, which runs the store platform. Until recently, Apple prohibited Spotify from notifying users about cheaper options (such as subscribing from the service’s website).

A report from the UK’s Competitive Markets Authority highlighted concerns that tech giants are creating barriers to innovation and competition. Their full market research will be reported in June 2022. The British government has promised to introduce a new law “if parliamentary time permits”.

Alternative app store

EU Digital Markets Act may come into force by the spring of 2023. The law aims to open up mobile platforms by allowing users to install apps from alternative stores, and to prevent app store providers from preferring their products and services to third parties. Provided by the developer.

In February 2022, a committee in the US Senate approved a bill aimed at curbing app stores.

It is possible to install other niche store apps on Android hardware, such as the F-Droid store for open source apps. However, the Play Store is available on almost all Android smartphones by default. This means that the apps available in the Play Store can reach far more users.

Both Apple and Google’s app review process (check before making a developer’s app available) has been strongly criticized for lack of transparency, consistency, and general inequality. Independent developers have no real influence over multi-billion dollar international enterprises.

Google has been criticized for failing to provide a meaningful explanation when removing an app from the store.

User privacy

Apple has expressed security and privacy concerns about allowing apps from other stores on its devices.

The App Store review process can ensure that your app complies with your privacy policy. However, most users haven’t read these, and apps can access and share much more data than they are aware of.

Third-party app stores can create trade-offs between user freedom and user safety. Some users may prefer Apple and Google’s approach to privacy. Others may prefer a more open experience. There you can install apps from small independent developers who can develop apps without jumping over the hoops of large app stores.

The fact is that it’s possible to give users this choice-evidence from the proceedings shows that Apple originally planned to support running apps from outside the app store. .. Digital Markets Act could force Apple to rethink.

DMA does not provide results to users and developers unless properly implemented. The European Commission itself will be the first dedicated regulatory agency. However, this is time consuming and the committee needs to grow a team large enough to provide meaningful oversight and enforcement.