Apple is under heat again, this time to a greater extent. The trillion-dollar-company is at the receiving end of a proliferating backlash as companies revolt against it’s Appstore ‘tax’.
An increasing number of companies are expressing their irritation against Apple. They are stating that the company is collecting an absurdly high tax for connecting consumers to developers. Big names like Netflix Inc, gaming blockbuster Fortnite makers Epic games and Valve Corp have expressed their grievances.
Apple and Google both have been experiencing such backlash over their app- stores, however, the amount of grumbling they are receiving currently is unprecedented. Apple’s Appstore has been the biggest platform for developers to show their creations to the consumer realm. Companies take a 30% cut in the money paid by consumers to the developers, eventually making an $82 billion virtual industry.
“Apple are acting like avaricious middlemen by collecting such tax”
However, as the percentage of smartphone users has increased, so has the criticism against ‘greedy’ companies like Apple. The company that was labeled as the driving force of innovation, is now being scrutinized for acting like avaricious middlemen. “They’re very aggressive about making sure companies aren’t trying to work around their billing. Only if they kill the app store tax, will the small yet high potential companies will overcome the last barrier of reaching the virtual market, ” claims Alex of the mobile company Branch.
Netflix remarks that it is testing a way to bypass Apple’s in-app subscription method, by directing users straight to their own website. The in-app purchasing system allows Apple to take more than 1/3 cut in the transaction between companies like Netflix and the users. Valve Corps too tried to bend around this system by introducing a free app to allow gamers to play while away from their computers. However, Apple blocked this attempt and hence, it failed.
In order to defend their actions, Apple and Google both claim that this system helps them find and block ‘fake’ apps and software. However, since both these companies are duopolistic, the heat they have been receiving would likely diminish over the course of time.