Mikey Campbell
In a settlement between mobile advertising firm Tapjoy and the U.S. Federal Trade Commission, two commissioners lambasted Apple and Google for creating a hostile environment for gaming industry players.
Democratic Commissioners Rohit Chopra and Rebecca Kelly Slaughter in a statement said Tapjoy is "a minnow next to the gatekeeping giants of the mobile gaming industry, Apple and Google." The FTC's three Republican commissioners did not attach their names to the critical letter, reports CNBC.
"By offering a platform connecting advertisers, gamers, and game developers, Tapjoy allows these developers to generate advertising revenue that Apple and Google do not tax," the commissioners said. "But this monetization model also creates opportunities for fraud"
Chopra and Slaughter surmise that "heavy taxation" under app store models run by Apple and Google has pushed developers to "alternative monetization models that rely on surveillance, manipulation, and other harmful practices." Tapjoy, which was accused of false advertising related to unfulfilled in-game offers, was one of those avenues.
When reached for comment, Apple directed CNBC to CEO Tim Cook's congressional testimony last year.
"For the vast majority of apps on the App Store, developers keep 100% of the money they make. The only apps that are subject to a commission are those where the developer acquires a customer on an Apple device and where the features or services would be experienced and consumed on an Apple device," Cook said in a prepared statement designed to address scrutiny of App Store monetary policy.
Both Apple and Google have come under fire for taking a healthy portion of digital app store fees. The most public challenge comes from Epic Games, which last year leveled legal claims against Apple over the tech giant's cut of in-game purchases, as well as regulations that restrict third-party app stores on iOS.
Seemingly in response to heightened criticism of its App Store practices, Apple in November announced a Small Business Program that reduces the App Store commission rate to 15% per year for developers making under $1 million a year.
AppleInsider Staff
Andrew Orr
Amber Neely
William Gallagher
Christine McKee
13 Comments
I think we've seen with the likes of Facebook and similar that app developers will utilise invasive and questionable revenue generation business models regardless of the app stores and they will follow these practices through to their websites.
Also where do companies like Nintendo sit in all of this? The Nintendo Switch is frequently the highest selling console, it is the premier Mobile Gaming device - yet for every game that exists on Nintendo's eStore and Apple's Appstore: the Appstore version is significantly cheaper. (Side note: This also applies to the Steam store.) Using the USA's "cheaper is always better" rule for competition, it stands to reason that Apple is providing a competitive service.
I think Nintendo would like a word.
Good. Kick xbox & playstation the fuck off & outta here. Lol
I don't ever remember anyone stating that Microsoft and Sony are the "gatekeepers" to the console gaming market. Microsoft and Sony owns about the same marketshare of the "console gaming market" as Apple and Google does of the "mobile gaming market". And guess what, they charge the same 30% "tax" for game developers to be on their X-Box and PlayStation platforms.
PLUS, console games can cost up to $60 AND it cost a minimum of $60 a year for a subscription for an online account, to play online games with a game console. And one would still need to pay for some of the more popular online games. From which the owner of the platform will "tax" the game developer 30%.
AND, over 70% of the gamers are playing on a game console. Even though it's the most expensive way to play games. While less than 30% of the gamers are playing on computers or mobile devices.
Then we have this, about the maker and seller of the X-Box itself, none the less. It actually sounds worse than what any free app on a mobile device does.
https://www.pcworld.com/article/2060363/what-data-does-microsofts-xbox-services-collect-we-break-it-down.html
Now that the Dems have full control of House, Senate and the Presidency, watch out Apple! Apple as a corporation and Apple's employees as individuals are strong supporters of the Democrat party and yet it's the Democrat party which consistently spars with Apple's business practices.