Changes Coming to our Mobile Marketplaces?

It has been a few months since the initial news of the legal battles that would take place between Epic Games, Apple, and Google after changes made by Epic to have direct payment methods which had been against the terms and service of both platforms – whilst things have quiet, there’s still a long battle ahead, but we’ve already seen how big changes could be coming to our mobile marketplaces and what this could mean for app developers. 

The first big step came from Apple – whilst there had been a lot of back and forth on whether or not any changes would be made with Apple getting the upper hand in some cases, in a proactive approach they have since stated that in 2021, any developer with revenues totalling less than $1 million will be charged 15% on an in-app purchase, as opposed to the current 30%, and making a move toward what many believe was the overall goal from Epic. Whilst the 15% drop is significant, it may not be enough in the argument that both Apple and Google are running a monopoly on the app space on the marketplaces, as only those posted on either receive a trusted mark for consumers often rendering the other marketplaces as obsolete. 

(Image from arstechnica.com)

This initial change has also only been made by Apple, as Google have managed to remain somewhat out of the public eye and silent during the proceedings. Whilst the Epic lawsuit was targeted at both, Apple had taken the brunt of the force following initial comments which had turned it in to a bit of a two-horse race, but as things continue through the process, it’s likely that soon enough Google will have to start going on the defensive and defend some of the choices it has made, along with the ongoing choice currently not to follow Apple in reducing the app store tax. The change could be good for certain developers and operators however, as it may open the door to the app store that had previously remained closed – online casinos provide a perfect example as a server that isn’t often found on the app store with many believing it is largely because of this huge tariff placed on deposits which would cut into revenues, but as rulings have changed for many operators over the past year such as payment methods as UK casinos accepting credit cards have become less common, opportunities to branch out into these other areas may become more valuable. 15% may still be too high however as hopes that this number will continue to fall remain, and others will be looking closely to see if the market has space for their offerings once the dust settles – there’s still a long way to go though, the legal battle is still relatively young and experts have already suggested this could be a multi-year approach, so those expecting the big changes to keep rolling immediately may be disappointed with the slower paced approach that is bound to take place in the coming  years.