[HN Gopher] Subscription service charge on Google Play store wil...
___________________________________________________________________
 
Subscription service charge on Google Play store will drop to 15%
next year
 
Author : aembleton
Score  : 174 points
Date   : 2021-10-21 16:23 UTC (6 hours ago)
 
web link (android-developers.googleblog.com)
w3m dump (android-developers.googleblog.com)
 
| dataviz1000 wrote:
| Can someone explain the subscription on Google Play and Apple App
| Store today?
| 
| I launched an app for a B2B SAAS service that clients paid ten of
| thousands of dollars a year for. We put the app which was
| secondary to the web dashboard which the clients used mostly
| during business hours in the Apple App Store and on Google Play
| without mentioning any payment in the product description which
| both allowed. When I first submitted the app Apple said we had to
| remove the link to the payment form on our website after which
| they were cool with as long as it wasn't on the app description.
| We billed the users and maintained the accounts through the web
| application and web dashboard without giving any money to Google
| or Apple.
| 
| Is this still allowed today?
 
  | radley wrote:
  | Apple allows B2B to bill outside of the app store. Can't speak
  | for Google's Play Store.
 
| Scoundreller wrote:
| Should be 0% or otherwise heavily discounted for your first $x in
| sales. More money in early products today will mean more revenue
| for google later.
 
| ksec wrote:
| >Today, we're also making changes to the service fee in the Media
| Experience program, to better accommodate differences in these
| categories. Ebooks and on-demand music streaming services, where
| content costs account for the majority of sales, will now be
| eligible for a service fee as low as 10%.
| 
| And I _think_ Google has always been taking 15% on the first
| million revenue on services. Which wasn 't clear in the post.
| 
| The 10% changes is welcome. But may be too little too late in
| terms of legal and regulation.
 
| shining373 wrote:
| Do you know about "Payoneer Google Pay"? What you're seeing right
| is talking about two different online payment platforms for
| business. Basically, we have Google pay, PayPal and that of
| Payoneer payment processing service. Where do you think this
| article is driving us all to or what is it trying to review to us
| about. You can only know where the article is leading us all to
| only if you are still sitting down wherever you are and still
| reading the post.
| 
| Payoneer Google Pay - Online Payment Processing Platforms For
| Business Payoneer Google Pay
| 
| Just as explained earlier, that the topic is about two different
| platforms and we get their names mentioned. If you are to search
| about what you see above "Payoneer Google pay" there is nothing
| you will find about it. But searching after them one after the
| other, I assure you will be able to understand what you are
| looking for. In here, the two things we are discussing is what
| you are seeing as the key header of this post right now but
| beginning with the explanation below.
| 
| Payoneer Vs Google Pay
| 
| The reason why the words were appearing this way is for us to
| understand better. This is in other to get clear details of what
| we are looking into. However, what you see here is the one that
| tells you about the difference between them. Both starting with
| that of Payoneer and then over to Google pay.
| 
| Payoneer
| 
| Payoneer you see is a company known for the American financial
| services but not like BOA. This is made for providing online
| money transfer. Not just for a money transfer but also with a
| digital payment service for users with working capital.
| 
| Particularly, there is also programs for cross-border payments
| platforms for empowering businesses, online sellers, and
| freelancers. Basically, for the platform to pay and also get
| payments worldwide. There are so many services on the platform
| that you will love, solutions, industries, resources, partners,
| and more. Under each of the service options mentioned here, there
| are sub-options for each one of them.
| 
| You have to register on the site before you will be able to
| access the platform and do whatever you wish on the platform. The
| URL of the site if you are thinking of creating an account is
| www.payoneer.com. Also, when you visit this link on your browser,
| it will then link you to their homepage. This is where the
| registration link is.
| 
| Google Pay
| 
| Now, over to Google pay. Google pay is just like Payoneer, it is
| basically for sending and receiving money online. It is more like
| a digital wallet and a payment system which Google lunch by
| itself. For Android users, it allows them to make payments with
| their Android phones, tablets, or watches.
| 
| It is not just for Android users alone. However, users in the
| United States and India can as well use it on their iOS device,
| albeit with less limited functions. For the website, it tells you
| of all the payment activity that you have used your Android
| device to do. Like those that love playing online games whereby
| you buy items, games like Call of duty mobile.
| 
| We know it is a very well-known popular game. It also has an app
| free for download. The app is free just as mentioned and you can
| find it on your Android device Google play store. As for the
| website, we have something like www.pay.google.com and you don't
| need to create an account before you can use it.
| 
| As long you are a user of the Google platform, if you have your
| Gmail account, you are good to go. You can as well create an
| account if you don't have an account, just visit www.gmail.com
| and you can create your account. Thanks for efforts and I will
| be waiting for your next write ups thanks once again.
 
| heavyset_go wrote:
| More evidence of price fixing[1] from Apple and Google's mobile
| app distribution and payments cartel.
| 
| If there was real competition in the mobile app distribution and
| payments markets, and not just Google and Apple working in tandem
| to protect their profits, then consumers would benefit from
| increased efficiency and lower costs when it comes to how they
| get and pay for apps.
| 
| [1] https://en.wikipedia.org/wiki/Price_fixing
 
| kumarm wrote:
| Great news for anyone building business based on
| IAP/Subscriptions on Google Play. It is really sad to see mostly
| negative views on the topic.
| 
| Here are important benefits compared to previously made changes
| by google:
| 
| 1. Subscription revenue share drops to 15% instead of 30% without
| 1 million/year limit.
| 
| 2. E-Books and Music Streaming services will pay 10% instead of
| 30%.
| 
| This is great news not only for developers on google Play but
| also iOS Developers, it will put pressure on Apple to cut Apple
| Tax further.
 
| lwansbrough wrote:
| Wow Google must have done some major restructuring to cut their
| revenue in half! /s
 
| dcchambers wrote:
| I think people are focused on the wrong issue. The fee % is not
| the problem. The problem is the restriction against using other
| types of payment processors.
| 
| I am 100% OK with Google, Apple, or whoever charging whatever
| price they want to charge for using their app store services.
| They are, after all, providing all of the infrastucture for
| software delivery, updates, payments, etc. Not to mention giving
| you access to a massive potential userbase.
| 
| The problem is them preventing you (the developer) from allowing
| the user to use other forms of payment processing within the app
| itself. Apple is the worst offender of this. Google obviously
| allows side-loading of apps and other app stores for Android
| while Apple does not. Apple goes so far as to prevent you from
| linking to a website with an external payment option, or to even
| suggest in text within your app that there are ways to
| subscribe/pay outside of the app store.
| 
| They claim it's about the user experience and security, which is
| legitimate, but it's almost certainly about keeping those nice
| profit margins. It's within their right to charge what they want
| to use their store, but the restrictive nature of not allowing
| competition is wrong. If Apple would even allow sideloading of
| apps this wouldn't really be an issue. They could keep things as-
| is and just tell developers "Don't like the app store rules?
| That's fine, but you can't list your app here. Good luck in the
| free market."
| 
| Because mobile computing has become the primary form of computing
| for many (most?) people, the fact that these few companies have
| so much power about what people can and can not do on their own
| devices is scary.
| 
| Edit: At a minimum, they could require developers to make all
| payments available via the official app store payment platform,
| in addition to any other types of payment processing they want to
| do. This would let the customer decide and would get rid of any
| regulatory concerns about monopolies. And you know what? I bet
| most customers would still pay via the official app store/play
| store payment method, but at least the other options are there. I
| also think the policy of not allowing apps from outside the app
| store to be installed is insane. It's your device, you should be
| able to use it how you want to.
 
  | v7p1Qbt1im wrote:
  | Apple now moved on this by the smallest possible amount.
  | They'll allow media apps (like Netflix and Spotify) to link to
  | their own payment system on the web. Though the details aren't
  | quite clear afaik.
 
  | threatofrain wrote:
  | Where are the profit margins coming from with regards to
  | payment processing? With regards to in store fees such as the
  | IAP, Apple and Google collect fees because of a legally
  | enforced agreement with devs, and using PayPal does not dodge
  | this in any way. As far as I know, banks are currently eating
  | the very small fee for Apple Pay specifically on their end; not
  | sure about Google Pay.
  | 
  | To be clear, I am discussing the distinction between Apple Pay
  | and the IAP.
 
  | anxrn wrote:
  | Reminder that Jobs initially did not support having an app
  | store at all for the original iPhone, IIRC for reasons of
  | maintaining the bar on experience. His proposal was to build
  | "apps" for use in Safari.
  | 
  | https://appleinsider.com/articles/18/07/10/the-revolution-st...
 
    | kevin_thibedeau wrote:
    | That was because their iOS API wasn't ready for public
    | consumption. Web apps were a stopgap so they had something to
    | ship.
 
      | marcellus23 wrote:
      | No, Jobs actually didn't want an App Store. He had to be
      | convinced.
 
        | spoonjim wrote:
        | Nobody can know what Jobs actually wanted and what is
        | narrative-building because he was the best storyteller
        | this industry has ever seen.
 
        | TeMPOraL wrote:
        | I'd really love to know his mindset, because it's
        | completely unfathomable to me.
        | 
        | The idea of applications on the phone was something
        | _blindingly obvious_ to me ever since my first Nokia 3410
        | I had as a kid. The phone had a bunch of distinct
        | functionalities other than making calls, which you could
        | invoke through a menu. Why shouldn 't I be able to add
        | new ones? Write new ones myself?
        | 
        | Installing custom software was later normalized when
        | phones gained ability to run J2ME applets. By the time
        | iPhone was conceived, it was an expected feature.
 
        | hehetrthrthrjn wrote:
        | > I'd really love to know his mindset, because it's
        | completely unfathomable to me.
        | 
        | He was fixated on having complete control.
 
        | hbn wrote:
        | And why would webapps give Apple complete control?
        | 
        | Someone develops a webapp, I can make my own phone and
        | anyone who wants to continue using all the webapps they
        | were using in Safari on their iPhone can come over and do
        | that in the browser on my phone.
        | 
        | People develop native apps for the iPhone, and suddenly
        | leaving the iPhone means leaving behind all those apps.
 
        | KingMachiavelli wrote:
        | It's the other way around. WebApps at the time would have
        | been a complete joke since mobile browsers were so
        | limited. At least that's how I understand it. He just
        | didn't want any third party apps. He wanted to make every
        | app in-house. (For example the original YouTube app was
        | an in-house project.)
        | 
        | It sounds crazy but at the time the wild west of apps on
        | the desktop meant that the user experience was pretty
        | poor and allowed malware to explode.
        | 
        | It has been said that Microsoft's failure to fix these
        | issues is really what drove web application development.
        | No one realized a viable alternative was to lock down the
        | device to a single store/publisher and then take a 30%
        | cut.
        | 
        | Now that WebApps probably could replace nearly all native
        | apps, it's in Apple's best interest to not fully support
        | PWAs, WASM, etc. because the app store is so lucrative.
 
        | toyg wrote:
        | _> It has been said that Microsoft 's failure to fix
        | these issues is really what drove web application
        | development._
        | 
        | Nah, what drove web development was 100% ease of
        | deployment. No more dealing with installers that don't
        | work and people who don't know how to use them, the
        | browser is already there; no more dealing with the pain
        | of rolling out updates, you push to your own server and
        | it's done. And you don't have to care about Windows stack
        | vs Mac stack with completely different teams, a few
        | css/js tweaks and you're done. Sun understood the issue
        | and tried to put up a fight with their Java Web Start,
        | but in the end the JRE still required an installer, with
        | all the related issues. MS eventually got something like
        | that working seamlessly, but it was 15 years too late.
 
      | mthoms wrote:
      | Citation? This contradicts everything I've seen on the
      | matter.
 
        | finiteseries wrote:
        | The article linked in the comment they're replying to.
        | 
        |  _According to Walter Isaacson 's biography of Jobs, the
        | tech guru was opposed to allowing third-party to run
        | natively on iPhone..._
        | 
        |  _...Others in the know disagree with Isaacson 's story
        | and contend third-party apps were always on the iPhone
        | roadmap; Jobs and company were simply not comfortable
        | with releasing an SDK at launch._
        | 
        | https://appleinsider.com/articles/18/07/10/the-
        | revolution-st...
 
    | krferriter wrote:
    | We're now at the point where writing web-first apps that can
    | get optionally also get compiled into "native" apps that run
    | in a js/wasm runtime on any platform and act like native apps
    | might get popular again.
 
      | deadmutex wrote:
      | Is this allowed under iOS?
 
        | judge2020 wrote:
        | PWAs have acceptable (but not full) support on iOS 14 and
        | 15, you just are forced to ask customers to "press the
        | share button then press add to Home Screen" for it to
        | install to the Home Screen like a regular app.
 
        | paxys wrote:
        | "Acceptable" is a stretch. There is no way of discovery,
        | say via the App Store. There is no "Add to Home Screen"
        | button (apps can only tell users to open safari settings
        | and do it themselves). There are no push notifications or
        | background sync/fetch. No way to play background media.
        | Full screen doesn't work for anything outside of video.
        | Only a small part of the web manifest file is recognized.
        | The cache limit is a tiny 50MB, which will be purged in 7
        | days.
        | 
        | Here is a very detailed post on this -
        | https://infrequently.org/2021/04/progress-delayed/
 
        | [deleted]
 
        | yen223 wrote:
        | Yes. Apps that are basically a webview over a site are
        | pretty common.
 
        | [deleted]
 
  | weyland108 wrote:
  | As a iOS user I feel safer that all payments go through apple.
  | I am assured of certain level of privacy and security which is
  | very comforting.
 
    | ls15 wrote:
    | Nothing would stop you from limiting yourself to apps that
    | only use Apple's ecosystem, but what is the reason to stop
    | others from installing apps that are using other ecosystems
    | on their iOS devices?
    | 
    | I would certainly enjoy F-Droid for iOS.
 
    | didibus wrote:
    | What if the alternatives were PayPal, Amazon Pay, Google Pay,
    | Steam, etc. ? Would you not similarly trust those payment
    | processors?
    | 
    | Also, it should be telling that if you are using an App which
    | only offers: Sketchy Payment Processor, that the app itself
    | is sketchy, so just go use another app.
 
    | mattnewton wrote:
    | Why not just require whether or not it is going through apple
    | to be prominently displayed, and you can only use the apple
    | App Store then, and allow other people to use other payment
    | processors if they trust them?
 
    | elliekelly wrote:
    | If I can make a purchase or get a subscription through Apple
    | I always do because I know it will be infinitely easier to
    | cancel and I won't have to deal with any shady billing from
    | sites that store your card info. I don't understand why Apple
    | can't _require_ their payment methods but also allow the
    | option for external payment. Apple should position themselves
    | like American Express: maybe a touch more expensive but worth
    | it for the peace of mind and ease of getting assistance.
 
    | Andrew_nenakhov wrote:
    | Are you also feel safer that Apple decides what apps you are
    | allowed to run? For example, in China, iOS users aren't
    | allowed to run Signal or Protonmail apps.
    | 
    | Did it occur to you that if a user is not the final authority
    | who decides which apps should run on the device, he is not
    | really owning the device, but merely leasing it, under some
    | strict terms?
 
      | dymk wrote:
      | This isn't really a concern for me, no
 
        | Andrew_nenakhov wrote:
        | "When they came for Communists, I wasn't concerned,
        | because I'm not a Communist."
 
        | dymk wrote:
        | Take it up with the CCP
 
    | dcchambers wrote:
    | I think the solution is for Apple to require that all
    | payments at least have the option of being made through the
    | app store payment system, while allowing developers that want
    | to take the time and effort to set up outside payments do
    | that as well.
    | 
    | Consumers can continue to use app-store payments if they wish
    | (and I bet the vast majority would), but developers and
    | companies can no longer complain about Apple's monopoly over
    | payment processing.
 
      | notsrg wrote:
      | The problem with this is that using Apple Pay would be more
      | expensive and so why would anyone use it?
 
        | didibus wrote:
        | A bunch of people here just mentioned they love the fact
        | that the payment is handled by Apple for piece of mind.
        | So I guess that would be why?
 
        | dcchambers wrote:
        | Security and peace-of-mind, as the other commenter
        | requested. Convenience - already having a credit card
        | linked and ready to go.
        | 
        | Also who is to say the developer would charge less? Let's
        | say, for example, a company called ezpay charges $1 per
        | transaction. If an IAP costs $10, they make $7 off the
        | user who buys via Apple, and $9 off the user that buys
        | via ezpay API in the app. They could lower the ezpay
        | price to $8 and still only make $7, but why bother?
 
        | Gigachad wrote:
        | Virtually no one is concerned with the security of card
        | payments on non apple processors. They have been typing
        | their card numbers in to stripe/paypal/etc for years.
        | 
        | Only the tiniest % of HN idealists will pay 30% extra to
        | have it go through Apple.
 
        | AnthonyMouse wrote:
        | If competing payment methods were reasonably available
        | then maybe Apple Pay would lower its fees.
 
      | vanattab wrote:
      | Are you sure they wouldn't considering it would be 15%-20%
      | cheaper?
 
        | dcchambers wrote:
        | Who is to say the developer would charge less? Let's say,
        | for example, a company called ezpay charges $1 per
        | transaction. If an IAP costs $10, the dev makes $7 off
        | the user who buys via Apple, and $9 off the user that
        | buys via ezpay API in the app. They could lower the ezpay
        | price to $8 and still only make $7, but why bother?
 
        | Gigachad wrote:
        | Because another company will offer the same product for
        | slightly cheaper now that their fees are lower.
        | 
        | Google One already charges you less if you subscribe via
        | web or android. They just haven't been allowed to
        | advertise this fact in the iOS app.
 
        | [deleted]
 
      | [deleted]
 
    | krferriter wrote:
    | Okay but charging fees on in-app purchases as a pretty high
    | percentage of the purchase amount is ridiculous and basically
    | just a moneymaking racket with no real justification, that
    | they do just _because they can_ and they already have a
    | stable base of customers who are unlikely to switch to a
    | competitor (Android is the only competitor).
    | 
    | Flat per-transaction fees to cover operating costs is more
    | acceptable. But Apple might make less money in that scheme.
    | On the other hand, more developers might be willing to write
    | apps for iOS if they weren't getting gouged by such high
    | Apple Store fees, so Apple might even come out ahead if they
    | reformed their pricing and payments policy.
 
  | 8note wrote:
  | Control over payment flow is already in the right place imo,
  | though I think the charges should be per transaction flat rates
  | and not % based.
  | 
  | App developers are bad actors and should not be trusted to
  | control payment information, refund policies, or subscription
  | management. They will abuse all of them, and they already abuse
  | the limited tools they have for in app payments.
  | 
  | Payment flow needs to be controlled by an entity that is trying
  | to protect the buyer, not the developer
 
  | pornel wrote:
  | And Apple likes to pretend that there are no better payment
  | options. I would prefer to subscribe via PayPal, because it's
  | easier to cancel via them than via Apple's iTunes corpse.
 
    | criddell wrote:
    | The reason I vastly prefer paying via Apple over other
    | methods is precisely because of how easy it is for me to see
    | my subscriptions in one place and cancel with a click.
 
    | CountSessine wrote:
    | I don't understand?
    | 
    | Settings -> AppleID -> Subscriptions?
    | 
    | It's on your phone? You don't have to use iTunes at all? I
    | wouldn't have even thought to use iTunes? Unsubscribing is
    | the easiest thing in the world - much easier than PayPal.
    | It's right there in the Settings app.
 
  | [deleted]
 
  | realusername wrote:
  | I want it one step further, it's not called "sideloading" but
  | just "normal install", people should be able to install
  | anything they want without some unwanted middleman, all the
  | restrictions are just market distortions.
 
    | [deleted]
 
    | Denzel wrote:
    | > people should be able to install anything they want without
    | some unwanted middleman
    | 
    | What "people" are you referring to? The millions of people,
    | like yours truly, who've made the conscious decision to pay
    | Apple _because_ of their App Store model.
    | 
    | I'm an engineer, I have a desktop and a laptop I can install
    | whatever I want on. I'm ok with not doing that on my phone.
    | In fact, I _don't_ want that experience on my phone.
    | 
    | So, I don't understand when others speak for "people" like me
    | who've voiced their opinion via purchase. There's a long list
    | of moments where I've been over-the-moon, downright happy
    | with Apple's payment and subscription experience. It's been a
    | breath of fresh air vs. dealing with independent providers
    | where, oh, I have to cancel by calling your customer support
    | center? Oh, no, you need me to send an email instead? With a
    | photo of my ID? Oh, you accidentally continued charging me
    | because the subscription wasn't canceled? That's ok, but why
    | did you double the price of the subscription without so much
    | as an email notifying me? Oh, you sent an email titled
    | "Thanks for being a customer" and buried it in the addendum,
    | gotcha. Yeah, I'm ok, I'll stick with Apple's payments and
    | subscriptions system on my phone.
    | 
    | Those are all real experiences, by the way, that I'm happy to
    | say I haven't had with Apple for the past decade.
 
      | selfhoster11 wrote:
      | Some people went with Apple in spite of their closed App
      | Store model. They might have well not wanted it, but other
      | advantages of iPhones won out for reasons that will remain
      | their own.
      | 
      | As a reminder, Android requires manually ticking a checkbox
      | before allowing sideloading. Sideloading is a choice, not a
      | requirement. If you don't want to do it, don't enable it.
 
      | FpUser wrote:
      | That is your experience that I would not challenge. Mine is
      | completely different for a very simple reason: except
      | Netflix I completely ignore products that do not offer
      | perpetual license no matter what. And finding decent
      | products I need on generic web in my opinion is way better
      | then doing the same thing on app stores. There are
      | exceptions of course like off-line GPS software.
 
      | ajconway wrote:
      | This can be easily resolved by forcing developers who
      | provide their own method of payment to also include the App
      | Store's default in-app purchases. That's how it currently
      | works with Sign in with Apple.
 
    | littlecranky67 wrote:
    | Problem is we need an Appstore with enforcing rules nowadays
    | to protect ourselves from greedy ruthless software makers.
    | Just look at Windows - and ecosystem where Software mostly is
    | installed outside of an Appstore. What major players in the
    | Industry do now (Big players like Adobe but also other
    | smaller shops) would have been considered malware/adware some
    | 10 years ago. Stuff like uploading personal data, contents of
    | your Download folder, contacts information etc.
    | 
    | Even on Linux you can see that this "moderation" is
    | beneficial. No software will land in the repositories that
    | spy on the users, and its uncommon to install software
    | outside those repos that ship with your distro.
 
      | AnthonyMouse wrote:
      | > Even on Linux you can see that this "moderation" is
      | beneficial. No software will land in the repositories that
      | spy on the users, and its uncommon to install software
      | outside those repos that ship with your distro.
      | 
      | Which demonstrates that this works perfectly well without
      | restricting users from installing software outside of the
      | repositories.
      | 
      | You want the App Store to exist. You don't want it to be
      | mandatory.
 
  | neximo64 wrote:
  | And how would it be enforced? (If charged outside of the app
  | store and get an invoice from google instead on their cut)
 
    | gberger wrote:
    | Why should Google get a cut for a payment made outside of
    | their app store?
 
  | willseth wrote:
  | > The problem is them preventing you (the developer) from
  | allowing the user to use other forms of payment processing
  | within the app itself.
  | 
  | One major kink in this idea is that it breaks the free tier
  | model, since paid apps are essentially subsidizing free ones.
  | If you can use any payment processor in-app, then developers
  | will make their apps nominally "free" for App Store purposes,
  | and then use the payment processor of their choice in-app,
  | circumventing Apple's ability to collect any fee whatsoever. So
  | how do you address this problem without charging every
  | developer, even if they were otherwise willing to give away
  | their app?
 
    | lern_too_spel wrote:
    | They would still be required to report that they have in-app
    | purchases, just like they are currently required to report
    | they have ads, even if they aren't using Apple's or Google's
    | ad APIs.
 
      | willseth wrote:
      | This is the only reasonable suggestion I've heard, but it's
      | still very messy because it would not only require even
      | more careful policing of app code, but mostly because Apple
      | would have to invent an entirely new fee structure for apps
      | under this umbrella. It think to do it fairly it would just
      | end up looking like an AWS bill.
 
    | fyzix wrote:
    | An Apple developer account costs $100 per year and with
    | 20Million registered developers. $2B a year is more than
    | enough to host an appstore.
    | 
    | Or they can compete in the free market and offer their
    | payment gateway for a competitive fee, or they can do what
    | google is doing and allow third party app installs.
 
    | bww wrote:
    | If Apple allowed developers to keep 100% of revenue from App
    | Store transactions while Apple continued to pay for all the
    | operating costs it would still, undoubtedly, work out greatly
    | to Apple's advantage. They derive enormous value from having
    | apps in their store creating value for their platforms.
    | 
    | Of course, they would not be satisfied with that arrangement
    | because no company has ever been satisfied with making a ton
    | of money if it is possible for them to make some more. But
    | that certainly doesn't mean the model can't work or that if
    | there were regulation to this effect that it wouldn't still
    | be in Apple's enormous interest to continue to operate the
    | App Store.
 
    | bialpio wrote:
    | I think this could be defendable if they were selling the
    | devices at a loss ("cheap printer, expensive ink" model, or
    | gaming consoles model), but providing something that is
    | effectively a general purpose device on which they already
    | earn money, and that is locked down like this makes me
    | annoyed with them ("we know better what you should do with
    | your device, trust us"). That's the primary reason why I
    | don't even look at what devices they are offering, which is a
    | shame (I'd like to have more options).
    | 
    | > So how do you address this problem without charging every
    | developer, even if they were otherwise willing to give away
    | their app?
    | 
    | Aren't they already requiring developers to pay a fee to have
    | a developer account? I'm sure there are ways they could
    | recoup the costs of providing a service to the publishers of
    | free apps (normally, a free market would converge on the
    | actual price of providing this service). But they will only
    | look for a solution when forced to, why give away a stable
    | source of income?
 
  | 2OEH8eoCRo0 wrote:
  | In an alternate universe these app "stores" operate the same as
  | package managers on Linux do. No account necessary.
 
  | summerlight wrote:
  | > I think people are focused on the wrong issue. The fee % is
  | not the problem. The problem is the restriction against using
  | other types of payment processors.
  | 
  | I generally agree with this sentiment, but still feel that the
  | fee % itself is a significant part of the problem and worth to
  | tackle it in parallel.
  | 
  | My concern is that Google/Apple have lots of direct/indirect
  | advantages against its payment competitors as platform holders
  | and I'm 90% sure that they're willing to exercise that position
  | to keep the dominance of their payment solutions. And I think
  | they have a good chance of winning. We need to push them in all
  | possible directions even if some approaches don't work.
 
| concinds wrote:
| I don't see the point. Spotify's not willing to give up 10% of
| their Android revenue, they'll still use their own payment. Epic
| won't give up 15%. South Korea mandated that apps be allowed to
| have custom payment methods within apps. Why would any big
| company, whether Netflix, Epic or Spotify, still give Android
| 10%? It just seems that the "app store pay toll" is getting less
| and less justifiable; and it seems outrageous that mobile-first
| startups should give 15% of their revenues to rent-seeking by the
| #1 biggest company in the world and #5 biggest company in the
| world.
| 
| BTW, this regulatory pushback may really harm Android, because
| according to Sundar, Google Play constitutes most of Android
| revenue. With those revenues gone, that's a big chunk of money
| gone for Google. App Store revenue is also 37% of Apple's
| _profits_ , so obviously they're fighting tooth and nail, but
| it's easy to see where things are going. Apple/Google are going
| to be pretty desperate to prevent a total exodus.
 
  | thetrb wrote:
  | My view is that it's an effort to avoid regulation. It's easier
  | to justify a fee of 10-15% to regulators than a flat 30% fee.
 
  | totony wrote:
  | >Google Play constitutes most of Android revenue.
  | 
  | Google also includes a few services apps use (eg google play
  | services) which they could disable if an app isnt bought
  | through google play. Their alternative might be to monetize
  | their current services.
 
  | joenathanone wrote:
  | Agreed, personally I think 3-5% would be fair anything more is
  | rent seeking.
 
    | kfprt wrote:
    | The percentage should be set by the market. The problem is
    | that there exists a rent seeking monopoly at present.
 
    | echelon wrote:
    | Credit card transactions take far less, and they deal in
    | legitimate risk (chargebacks, stolen cards, fraud, etc).
    | 
    | As developers, we don't even _need_ app stores. They 're an
    | artifice that got shoved down our throat by trillion dollar
    | mega corporations. A taxation clearinghouse. You can
    | distribute the same program bytes from anywhere, most notably
    | the web.
    | 
    | It's Steve Ballmer's old dream of taxing all software.
    | There's just no point in it. It's massively unfair.
    | 
    | The excruciating review process adds insult to injury. And it
    | makes fixing bugs a slow and stressful nightmare.
    | 
    | If smart phone manufacturers really want to protect
    | customers, the best way to do that is to store signatures of
    | known bad applications and provide solid permissions-based
    | access to system resources.
    | 
    | Screw app stores.
 
      | beojan wrote:
      | From a user's perspective, the review is absolutely
      | necessary and really needs to be much better on Android.
      | Proactive vetoing of malware from distribution is much
      | better than reactive malware scanning against a signature
      | library.
      | 
      | That doesn't really justify a slice of subscription revenue
      | though.
 
        | echelon wrote:
        | > review is absolutely necessary
        | 
        | Wholeheartedly disagree. I download software on Linux and
        | Mac frequently without ever having it reviewed.
        | 
        | I buy physical products that have sensors. These don't
        | get scrutinized.
        | 
        | If we truly need a "health inspector", then it should be
        | a third party. Not the mafia that makes the device and
        | frequently launches competing apps and features.
        | 
        | And it seems totally uneven that websites can access and
        | deal in the same data, yet they escape review.
        | 
        | It's an invented charade that is brutally unfair.
 
        | ethbr0 wrote:
        | From a user's perspective, what do they want?
        | Availability, cheapness, quality, (all other things),
        | security, privacy
        | 
        | Android users don't care that they're being tracked, as
        | long as it doesn't break their app or drain their battery
        | too fast.
        | 
        | Google cares that apps track users, because (a) it allows
        | apps to end run around their own ad offering & (b) it
        | provides Apple with a talking point to bludgeon them
        | about the head with.
        | 
        | Review is a PR measure masquerading as a user benefit, in
        | order to technically enforce a centralized toll gate.
 
        | hutzlibu wrote:
        | But you know, that you can also just download and install
        | software on Android?
        | 
        | But yes, this requires knowledge of what you are doing.
        | 
        | So most people rightfully choose the playstore - and
        | maintaining (and curating) the playstore requires work.
        | So I also think it is fair, if google gets a cut. But 30%
        | and also 15% is just cutthroat price range.
 
        | [deleted]
 
      | cptskippy wrote:
      | > Credit card transactions take far less, and they deal in
      | legitimate risk (chargebacks, stolen cards, fraud, etc).
      | 
      | For high volume merchants.
      | 
      | For mom and pop shops they usually pay a fixed fee + %. For
      | transactions under $5 they can lose money on a sale which
      | is why you quite often see minimum purchase prices or
      | discounts when paying with cash. In some states however
      | there are no laws protecting small businesses and processor
      | contractors usually have a clause forbidding merchants from
      | steering customers away from paying with a card.
      | 
      | A local baobao shop by me offers a 10% discount for cash
      | transactions, that tells me they make more money offering a
      | 10% discount than accepting a card. When I was in Georgia
      | my drycleaner told me she didn't make money on any card
      | transaction under $25.
 
      | sofixa wrote:
      | As a consumer, i want app stores. It's million times better
      | than the default Windows situation downloading random
      | binaries off the Internet. Code signing and malware
      | signature matching are at best bandaids on a waterfall.
      | 
      | Having a centralised place with reviews categories, updates
      | etc. is very valuable.
 
        | heavyset_go wrote:
        | webOS in the Palm/HP Pre days and Maemo both had app
        | stores. webOS had the App Catalog and Maemo built an app
        | store around the apt package manager.
        | 
        | The difference is that Palm, HP and Nokia didn't take a
        | cut, and the stores themselves were based on open
        | protocols that allowed users to add their own sources for
        | apps. That resulted in excellent things like PreWare[1]
        | and, in Maemo's case, enthusiast run apt repositories.
        | 
        | It's entirely possibly to have safe and open app stores
        | that don't follow Apple's model. Apple's App Store model
        | is implemented and maintained to protect the revenue it
        | generates, and security has always been an afterthought.
        | 
        | [1] https://webos-internals.org/wiki/Application:Preware
 
        | [deleted]
 
        | smoldesu wrote:
        | Not all app stores are centralized, Linux has had this
        | figured out for years.
 
        | justapassenger wrote:
        | And yet, year of Linux on the desktop never happened.
        | 
        | Geeks are very different audience from general public.
 
        | Sohcahtoa82 wrote:
        | > Geeks are very different audience from general public.
        | 
        | HNers forget this quite often.
 
        | smoldesu wrote:
        | Sorry, I'll let the general public decide which package
        | manager is more ethical.
 
        | warkdarrior wrote:
        | I'll take any package manager that supports emoji in
        | package names.
 
        | Grimm1 wrote:
        | Suggesting that App distribution is even part of the
        | consideration for why Linux didn't catch on is kind of
        | hilarious to be honest. Their app distribution methods
        | being good or not had nothing to do with their lack of
        | adoption and it's kind of a non sequitur.
        | 
        | If I dropped their app distribution onto Windows it would
        | also succeed there with the general mainstream public, in
        | fact even more so, because of the garbage state for app
        | management there.
 
        | sofixa wrote:
        | Considering ChromeOS and Android's success, and the fact
        | that Windows 10 and Windows 11 include Linux VMs, it's
        | fair to say Linux on the desktop has had some decent
        | success, albeit somewhat indirectly. The generational
        | switch to Windows 11 will probably only help with that,
        | and IMHO Linux has never been easier on a desktop than
        | today.
 
        | sofixa wrote:
        | I'm not at all arguing for centralised app stores - the
        | Linux way is great, with default one(s) preconfigured,
        | and you are free to add extra ones you trust/want.
 
      | toast0 wrote:
      | > Credit card transactions take far less.
      | 
      | Depends on the payment processor/mechant bank/payment
      | network/issuing bank and the fixed fees vs transaction
      | amount. 3-5% is in range for a card not present transaction
      | for a low dollar amount with not a lot of volume.
      | 
      | If Google or Apple gets a good deal on credit card
      | processing because of volume and takes that plus a little
      | extra to pay for their services, that's a lot more fair
      | than 15-30%; high volume developers might want to shave
      | that margin a bit more, but low and medium probably
      | wouldn't bother.
 
      | wastedhours wrote:
      | As a developer I want the _option_ of App Stores taking
      | their cut - them being the Merchant of Record takes out a
      | monumental admin overhead from selling apps globally for a
      | small developer.
      | 
      | I also work for a global tech company whereby that approach
      | isn't needed as we have our own payment processing to
      | handle that, but as a part-time indie, I want the option of
      | deferring to the stores for payments.
 
        | commoner wrote:
        | As long as the cut is priced into that option (as in, the
        | fee is passed on to the customer through a higher price
        | for app stores) without affecting the price of buying
        | directly from the developer, and without any anti-
        | steering rules that prevent the developer from presenting
        | the customer with all purchase options and prices in the
        | app, there shouldn't be a problem.
        | 
        | Developers who don't want to set up payments outside of
        | the app store can choose not to do that. But that choice
        | should not prevent the developers who do want to offer a
        | lower-cost payment processing option to their customers
        | from doing so.
 
  | Factorium wrote:
  | Just to be clear, this is just 30% --> 15% for _subscriptions_.
  | 
  | One-off purchases for large companies ($1m+) still attracts
  | 30%.
 
  | mdoms wrote:
  | > I don't see the point. Spotify's not willing to give up 10%
  | of their Android revenue, they'll still use their own payment.
  | Epic won't give up 15%.
  | 
  | Sounds like we've got a healthy competitive marketplace. Great.
 
  | didibus wrote:
  | On the desktop, ton of apps don't do their own payments. It
  | takes quite a lot for a company to be able to process their own
  | payments. That's why you see a lot of pay with PayPal, Amazon,
  | Google Pay, Apple Pay, etc.
  | 
  | So I think for sure people will still offer Apple Pay. The
  | difference is that there'd be competition now, so Apple would
  | be forced to reduce their margins to the minimum, maybe close
  | to cost price to compete.
  | 
  | That's basically the point, the competition would drive prices
  | down.
 
    | [deleted]
 
    | moonchrome wrote:
    | Apple pay != App store payment
 
    | likeabbas wrote:
    | It's pretty easy to integrate Stripe as a payment processor
    | and they only take 3%
 
  | FormerBandmate wrote:
  | Google makes most of it's money on Android from integration of
  | services. If Windows Phone had taken over the non-Apple market,
  | as looked somewhat likely in 2009, Google may not have ended up
  | a trillion dollar company
 
| diebeforei485 wrote:
| No need for complicated pricing tier systems. Here's what I think
| fairer pricing would look like:
| 
| For anything that competes with the platform owner's paid apps
| (eg. Spotify, Netflix, Sweat with Kayla, Audible, etc compete
| with Apple Music, YouTube, Apple Fitness+, Google Books etc) -
| they should be allowed to use their own payment service in their
| apps just like Uber and Doordash do.
| 
| Anything else should be no more than a 15% cut.
 
| CodesInChaos wrote:
| The google play subscription API is probably the worst I ever had
| to integrate with.
| 
| For example
| 
| * Response leaves out historic data (i.e. a subscription doesn't
| show it was paused, had a trial, etc. once they're over)
| 
| * Fetching the subscription state frequently returns data
| inconsistent with previous results (e.g. the start date of the
| subscription keeps changing, the expiry date keeps jumping
| around), so piecing together a subscription's history by
| combining versions observed at different times is practically
| impossible
| 
| * Each subscription is a singly linked list, but doesn't give you
| enough information to actually follow the link. And it's from
| newest to oldest
| 
| * Authentication is a mess (it's half integrated into the google
| cloud, but not really)
| 
| * Settings changes take about ~24h to take effect
 
  | nicewarmvalley wrote:
  | +1
 
| gdeglin wrote:
| Here are some non-obvious reasons why this is a big deal:
| 
| 1. Regulatory and technology changes are making advertising a
| less effective business model. It's both more expensive to
| acquire users and less profitable to run ads. So each week more
| companies are switching to one-time IAP or subscriptions as a
| primary revenue source. This change will further accelerate this
| transition.
| 
| 2. A lot of apps sell digital content at a low margin. For
| example, Spotify and other music apps have to pay record labels
| for content. You can also consider marketplaces for user
| generated content that have this issue. Apple and Google's high
| service fees have prevented a large category of businesses from
| existing on the app store. Yes, they could try to direct users to
| pay through the browser, but anti-steering policies made this
| nearly impossible for companies without an established brand.
 
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