[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)
        
 (HTM) web link (android-developers.googleblog.com)
 (TXT) 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 <a
       | href="https://www.tipcrewblog.com/iflix-movies-watch-and-
       | download-... </a>your thoughts. I really appreciate your <a
       | href="https://www.tipcrewblog.com/paycor/">efforts </a>and I will
       | be waiting for your next write ups <a
       | href="https://www.tipcrewblog.com/">thanks</a> 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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       (page generated 2021-10-21 23:00 UTC)