Lately, we’ve heard a lot about how developers are unhappy with the 30% cut that both Apple and Google take from them, and their apps. Most notably is Epic Games, who has been trying to circumvent both Apple and Google, with their own online store, so they can keep the full 100% profits from their games like Fortnite.
It appears that Epic’s little stunt recently with Apple, has gotten Korea’s attention. As the Ministry of Science and ICT in Korea has said it is going to look into this revenue cut for both Apple and Google.
According to the Korea Herald: “The Ministry of Science and ICT said Wednesday that it will look into Google and Apple’s in-app payment systems over claims that they apply excessive commissions to app developers using their platforms.”
Apple and Google charge 30% on all revenue, not just ads and IAPs
Both Apple and Google have always taken a 30% cut on all revenue from their platform. Whether that’s in-app ads, In App Purchases, or even ads from Adsense.
The argument is that without their platforms, developers, creators and website owners wouldn’t be able to reach the customers that they are able to reach. Not to mention the fact that they do need to pay for the costs of keeping up the App Store, or YouTube. Which is true, it’s not free to host all of those apps, nor all of the videos on YouTube. But 30% does seem a bit excessive.
Epic Games has been the loudest voice in the room on this topic, but not the only voice in the room. Many other developers have voiced displeasure, including Basecamp’s CEO, when they launched their new email app on iOS. Which was denied at first, due to how purchases were made.
Epic Games is also suing both companies for this “excessive” revenue split
As mentioned, Epic is also suing both Apple and Google for this excessive revenue split, and it’s looking like it might go in Epic’s way. Especially if Korea’s Ministry of Science and ICT do decide that the revenue split is too much.
Most developers aren’t asking for no split at all. Of course, Apple and Google should get paid, but something closer to 10% would be more feasible. After all, these are trillion-dollar companies. It’s not like they need to make 30% on every single in-app purchase to put food on the table. But some developers need that 30% to be able to put food on the table and pay their bills.
It’s unclear what the outcome will be of this investigation into Apple and Google by Korea, but it likely won’t be the last.