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· Posted on
February 21, 2024

App-rehension: How Aussie developers are tackling the 30% commission monster

Aussie app developers are arguing that Apple and Google are breaching Aussie Consumer Law.

What's the key learning?

  • Aussie app developers are concerned about Apple and Google taking advantage of their market power.
  • When an industry has only one or a couple of main players, there’s always a risk of market power being misused.
  • The more big players grow, the harder it is for any underdog business to get their share of the pie.

👉 Background: As we know, Apple and Google are the ultimate gatekeepers of all things app stores. Apple and Google ‘facilitate’ almost all of the in-app purchases and charge app developers 30% commission from most purchases.

👉 What happened: Last month, a legal case was brought against Apple and Google for having app developers enter non-negotiable contracts. Now, the lawyers for Aussie app developers are arguing that Apple and Google are breaching Aussie Consumer Law.

👉 What else: They’re concerned about Apple and Google taking advantage of their market power. And now, they want the big tech to pay compensation to app developers and consumers too.

What's the key learning?

💡When an industry has only one or a couple of main players, there’s always a risk of market power being misused.

💡Over time, Apple has started to control more and more of the tech space by creating software that only worked on their products. But the more big players grow, the harder it is for any underdog business to get their share of the pie.

💡 This will be an interesting case to see whether regulators and courts will intervene, and bring some more competition to the mobile operating system space.

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