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More than 30 states sue Google over 'extravagant' fees in Play store

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Re: More than 30 states sue Google over 'extravagant' fees in Play store

#31

Earlier quoted context omitted.

Only for developers making less that 1 million in net sales per year will the fee be 15%. For every other developer, it's still 30%.

First million is at 15% for everyone I figure?

I believe that's how Google is doing it, but Apple is not

Re: More than 30 states sue Google over 'extravagant' fees in Play store

#32

Earlier quoted context omitted.

Only for developers making less that 1 million in net sales per year will the fee be 15%. For every other developer, it's still 30%.

First million is at 15% for everyone I figure?

Google does a 15% progressive fee for the first $1mil. Apple sorta does the same, though once you cross the $1mil threshold, you pay a 30% cut next year on all your sales.

Re: More than 30 states sue Google over 'extravagant' fees in Play store

#33
post #30
post #9

I'm really hoping someone wakes up and realizes the problem is not the fees but that consumers don't know about them. Let the consumer be informed about Google and Apple's rake on all their in-app charges. The outrage will take care of the rest. Not sure about Google, but Apple has deliberately prohibited developers from itemizing the 30% fee for consumers. That simple rule is what keeps their money pipe flowing. Mar…

At risk of sounding idiot and down votes. Can you explain me when was the last time you saw the itemized breakdown of a toy, or a T-Shirt you bought in Target/Walmart? Same is true for Nintendo, Sony, and Xbox systems. Why do we think it's fair for Walmart to not show exact breakdown on how much commission they are charging for keeping something on shelf and Google is wrong about it?

I strongly believe that Nintendo, Sony, & Xbox should also disclose their rake. However, it's also well understood that they take heavy losses on consoles that are made up on game margins. The same cannot be said for Google and Apple.

Retailers have substantial costs associated with distributing products and physical shelf space is a scarce resource. There are, by comparison, no limits to the number of apps on Apple and Google's "stores" and we know that the costs of maintaining them are quite low because the respective business units are wildly profitable.

The points you raised are the rather beguiling false equivalencies that have been propagated largely by people with a vested interest in preserving this system and averting scrutiny.

Re: More than 30 states sue Google over 'extravagant' fees in Play store

#34
post #9

I'm really hoping someone wakes up and realizes the problem is not the fees but that consumers don't know about them. Let the consumer be informed about Google and Apple's rake on all their in-app charges. The outrage will take care of the rest. Not sure about Google, but Apple has deliberately prohibited developers from itemizing the 30% fee for consumers. That simple rule is what keeps their money pipe flowing. Mar…

Why would consumers care? Maybe for an indie developer they think is getting screwed, but if an app costs a dollar, the consumer's price point is a dollar. They know that if the developer makes more money they aren't going to decrease the price of the app.

Market forces produced consolidation, as they always do. Consolidation and capture of distribution, which happens in most industries, sets the pricing of products using cartel and gangster tactics. App stores aren't any different from the railroads of the 1800s or Walmart or Amazon inflicting all kinds of pricing tricks on suppliers.

The question we should be asking is: Why should the owner of a distribution network get to retain all that power to themselves? Distribution networks should be highly regulated, price controlled, or state owned. All else just yields completely unaccountable power to an unelected private entity that gets to control the material state of the world.

Re: More than 30 states sue Google over 'extravagant' fees in Play store

#35
post #9

I'm really hoping someone wakes up and realizes the problem is not the fees but that consumers don't know about them. Let the consumer be informed about Google and Apple's rake on all their in-app charges. The outrage will take care of the rest. Not sure about Google, but Apple has deliberately prohibited developers from itemizing the 30% fee for consumers. That simple rule is what keeps their money pipe flowing. Mar…

Why would consumers care? Maybe for an indie developer they think is getting screwed, but if an app costs a dollar, the consumer's price point is a dollar. They know that if the developer makes more money they aren't going to decrease the price of the app. Market forces produced consolidation, as they always do. Consolidation and capture of distribution, which happens in most industries, sets the pricing of products…

[deleted]

Re: More than 30 states sue Google over 'extravagant' fees in Play store

#36

Earlier quoted context omitted.

Only for developers making less that 1 million in net sales per year will the fee be 15%. For every other developer, it's still 30%.

First million is at 15% for everyone I figure?

This article [0] says the Play Store takes 15% from the first million but Apple's store takes 30% of everything once you pass one million/year. But it also makes it clear that only a very small percentage of apps in either store make more than one million/year.

Another article [1] says 98% of developers in the Apple store would be below one million/year but also that that long tail generates only 5% of the store's revenue. There are a tiny number of apps that are enormous winners, games I assume, and there's everything else.

[0] https://techcrunch.com/2021/03/18/data-shows-how-few-google-...

[1] https://www.theverge.com/2020/11/18/21572302/apple-app-store...

Re: More than 30 states sue Google over 'extravagant' fees in Play store

#37
post #9

I'm really hoping someone wakes up and realizes the problem is not the fees but that consumers don't know about them. Let the consumer be informed about Google and Apple's rake on all their in-app charges. The outrage will take care of the rest. Not sure about Google, but Apple has deliberately prohibited developers from itemizing the 30% fee for consumers. That simple rule is what keeps their money pipe flowing. Mar…

This is an interesting point but it would apply to almost every line of business. Retail charges 60% markup. Imagine the outrage. 30% is a gross margin and doesn't take into consideration a lot of thigns. It'd be nice if Americans were exposed to the margins of everything but I'm not sure how much would change. The 'end price' for consumers is fair enough - the issue is one of competitiveness and that Android phones…

I tend to agree that most people wouldn't care about Google's cut. The only way to bring the fee down is to create more 'stores' where developers can sell their apps. Then the margin will completely collapse from 30% to near 0.

Re: More than 30 states sue Google over 'extravagant' fees in Play store

#38
post #12

Earlier quoted context omitted.

I could be wrong, but it sure seems like there are a couple of upcoming generations that can’t afford houses that will “cancel” some of these companies at the drop of a hat. I think we’ll eventually hit a tipping point where the economic realities of what’s been going on for the last 3-4 decades will suddenly become the focus of the majority and big companies will have no good will to defend themselves.

Your anger reminds me of how many people (including me) felt about m$ft in the nineties. I predict similar results.

Or how AT&T was broken up and has successfully acquired most of that back and then some. People don’t remember, and let these things continue to happen.

Re: More than 30 states sue Google over 'extravagant' fees in Play store

#39
post #33
post #30

Earlier quoted context omitted.

At risk of sounding idiot and down votes. Can you explain me when was the last time you saw the itemized breakdown of a toy, or a T-Shirt you bought in Target/Walmart? Same is true for Nintendo, Sony, and Xbox systems. Why do we think it's fair for Walmart to not show exact breakdown on how much commission they are charging for keeping something on shelf and Google is wrong about it?

I strongly believe that Nintendo, Sony, & Xbox should also disclose their rake. However, it's also well understood that they take heavy losses on consoles that are made up on game margins. The same cannot be said for Google and Apple. Retailers have substantial costs associated with distributing products and physical shelf space is a scarce resource. There are, by comparison, no limits to the number of apps on Apple…

Exactly how profitable does a market need to be to require showing margins to the customer? Where are you drawing the threshold?

Re: More than 30 states sue Google over 'extravagant' fees in Play store

#40
post #30
post #9

I'm really hoping someone wakes up and realizes the problem is not the fees but that consumers don't know about them. Let the consumer be informed about Google and Apple's rake on all their in-app charges. The outrage will take care of the rest. Not sure about Google, but Apple has deliberately prohibited developers from itemizing the 30% fee for consumers. That simple rule is what keeps their money pipe flowing. Mar…

At risk of sounding idiot and down votes. Can you explain me when was the last time you saw the itemized breakdown of a toy, or a T-Shirt you bought in Target/Walmart? Same is true for Nintendo, Sony, and Xbox systems. Why do we think it's fair for Walmart to not show exact breakdown on how much commission they are charging for keeping something on shelf and Google is wrong about it?

The analogy doesn't work. A more apt analogy would be to compare Google and Apple to car manufacturers who charge you a 30% markup on anything you buy from a store you drive to... But the stores have to charge you that automatically, and they're not allowed to tell you that they charged it.
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