Russian Lawmaker Seeks to Cap Apple's App Store Commission at 20%

[MacRumors]

Draft legislation submitted in Russia this week could see Apple's App Store commission cut by a third if it is ratified by the country's parliament.

Reuters reports that the bill requires that commissions on the sale of apps by Apple and Google be capped at 20%. Apple has a long-standing policy of collecting 30% commission on all sales (including in-app purchases) in the App store.

The bill, submitted to Russia's lower house of parliament by lawmaker Fedot Tumusov, stipulates that commissions on the sale of applications be capped at 20%.

The bill, if adopted, would also oblige app sellers to pay a third of their commissions to a special training fund for IT specialists on a quarterly basis.

According to a Russian-language Kommersant report, which has been shared by Tumusov on Twitter, the bill also proposes to oblige owners of mobile operating systems to allow users to install alternative stores. This would be especially problematic for Apple, since the App Store is the only official source for apps on its mobile devices.

Apple has been involved in a number of ‌App Store‌ controversies in recent months, from the Hey email app rejection to its battle with Epic Games. Regulators have also been taking a look at Apple's policies regarding ‌App Store‌ commissions and exclusive control over app distribution.

Apple is already facing App Store scrutiny in Russia since the Russian Federal Anti-Monopoly Service (FAS) concluded that Apple abused its dominant ‌App Store‌ position and limited competition in the iOS app market by banning parental control apps. Apple said at the time that it would appeal the decision.

Article Link: Russian Lawmaker Seeks to Cap Apple's App Store Commission at 20%

 

[ruka.snow]

So they want the industry-standard fee cut to 20% with no consolation on if this is viable or not, and on top of that, 1/3rd of that fee should be paid to the government on top of whatever sales tax they have. Sure these companies will just have to cut something to make it work, perhaps free apps and free hosting.

I am sure developers will be delighted when their $2000/month storage bill comes in whether they sell a single unit or not, like the good old days.

 

[gnasher729]

Poor Russians, no App Store for you soon.

Correction: No Russian App Store for you soon. You can always sign up on a different App Store.

Another correction: Only free apps and no in-app purchases available on the App Store. Developers can choose to make their app and in app purchases free for Russia only.

 

[2979382]

This is getting ridiculous and completely out of hand. The only thing a government should have power over in terms of money and a private company is the taxes they charge it.

 

[Wildkraut]

\o/ wohhhhhh it's slowly getting there...

The most important part of this news is "...the bill also proposes to oblige owners of mobile operating systems to allow users to install alternative stores."

Now just EU and US missing...

Great, just great news!

 

[alecgold]

Seems like a rather dumb sollution. I understand that Apple has a partial monopoly, but it’s not a complete one: you always have the option of switching to android or a few small other operating systems.
I personally like the idea of a walled garden a lot as it contributes a lot to my digital safety.

 

[2979382]

\o/ wohhhhhh it's slowly getting there...

The most important part of this news is "...the bill also proposes to oblige owners of mobile operating systems to allow users to install alternative stores."

Now just EU and US missing...

Great, just great news!

I sincerely hope you're being sarcastic. What that bill proposes is absolutely ludicrous and clearly cooked up by either incredibly stupid people who don't understand technology and operating systems, or highly malicious government operatives who want a back-door into Apple's OS.

 

[LeeW]

All that will happen here is that Apple and others will make amendments that mean your 20% only covers A + B, if you want C it will be an extra charge. They will find a way around it.

 

[farewelwilliams]

very bad news for indie developers.

 

[ArPe]

Draft legislation submitted in Russia this week could see Apple's App Store commission cut by a third if it is ratified by the country's parliament.

Reuters reports that the bill requires that commissions on the sale of apps by Apple and Google be capped at 20%. Apple has a long-standing policy of collecting 30% commission on all sales (including in-app purchases) in the App store.
According to a Russian-language Kommersant report, which has been shared by Tumusov on Twitter, the bill also proposes to oblige owners of mobile operating systems to allow users to install alternative stores. This would be especially problematic for Apple, since the App Store is the only official source for apps on its mobile devices.

Apple has been involved in a number of ‌App Store‌ controversies in recent months, from the Hey email app rejection to its battle with Epic Games. Regulators have also been taking a look at Apple's policies regarding ‌App Store‌ commissions and exclusive control over app distribution.

Apple is already facing App Store scrutiny in Russia since the Russian Federal Anti-Monopoly Service (FAS) concluded that Apple abused its dominant ‌App Store‌ position and limited competition in the iOS app market by banning parental control apps. Apple said at the time that it would appeal the decision.

Article Link: Russian Lawmaker Seeks to Cap Apple's App Store Commission at 20%

1. They are asking Apple and Google to give part of their commission to fund “IT training”. This is coded language for troll farms, cyberwarfare units and Wagner Group.

2. Like Epic, they are trying to open up iOS so that malware, spyware and banned apps can be installed, either by a distributor or user stupidity.

This is what happens when you don’t have a vetted sandboxed system:

Chinese-Made Smartphones Are Secretly Stealing Money From People Around The World

Preinstalled malware on low-cost Chinese phones has stolen data and money from some of the world's poorest people.

www.buzzfeednews.com

 

[verpeiler]

very bad news for indie developers.

Why is that bad for indie developers? Serious question.

 

[beanbaguk]

\o/ wohhhhhh it's slowly getting there...

The most important part of this news is "...the bill also proposes to oblige owners of mobile operating systems to allow users to install alternative stores."

Now just EU and US missing...

Great, just great news!

I also feel the same will happen for Epic.

In terms of outcome, there may be some change, but it'll take years for this to develop because ultimately, Google, Microsoft and other app-stores will be subject to the same anti-monopoly rules and the consultation period will take years and years, dragged out by lawyers.

 

[Wildkraut]

I sincerely hope you're being sarcastic. What that bill proposes is absolutely ludicrous and clearly cooked up by either incredibly stupid people who don't understand technology and operating systems, or highly malicious government operatives who want a back-door into Apple's OS.

lol no I'm not being sarcastic in any way.
These false security excuses are even more stupid, usually statements of people who never reverse engineered, or never dived deeper into low level programming.

Sure being jailed into an ecosystem, adds security through obscurity, this I can't deny.

 

[vladimirc]

Why is that bad for indie developers? Serious question.

they will gain more money that they can use on drugs. Apple should not allow that

 

[ruka.snow]

Why is that bad for indie developers? Serious question.

I'll end up costing us. The current Steam and App Store have been a level playing field where indie developers can shove up a game with no hosting costs and people willing to try it because they trust these stores. As soon as you take away that trust and as soon as these stores have to start charging you for storage and distribution, then we get back to the pre AppStore days where it was prohibitively expensive to sell.

 

[farewelwilliams]

Why is that bad for indie developers? Serious question.

30% pays for many developer services like free CloudKit, free Apple Maps usage, fast app review times, many SDK features and improvements every year, and much more.

20% means Apple will cut back on developer services to make up the difference and likely charge for services that used to be 100% free for all developers.

 

[beanbaguk]

Why is that bad for indie developers? Serious question.

Apple could simply recoup costs by increasing developer licences, or adding fees in other areas.

Why shouldn't they?

No company worth their salt will stand back and allow this to happen. The whole Epic scenario is a farce. If they truly cared for the customer, they would have reduced their stupid fake currency by 30% on their platform to show the true difference between them and Apple. But they didn't. They made an adjustment to make themselves look good in the eyes of the consumer, but also rake in more profit, while Apple get a big fat zero. And then further down the line, who protects the consumer when Epic decides to quietly increase the cost, back to level with Apple? Who suffers then, because I assure you it would happen in time.

The whole situation is really dumb, bullish and this latest twist is just an example of people looking at money and not the consumer.

 

[sndcj1]

So, they are expecting these stores to go from 30% to 13.3%
Not sure if 3% of the smartphone market is worth that.

 

[2979382]

30% pays for many developer services like free CloudKit, free Apple Maps usage, fast app review times, many SDK features and improvements every year, and much more.

20% means Apple will cut back on developer services to make up the difference and likely charge for services that used to be 100% free for all developers.

Apple maps usage is free?!? I did not know that, but you're right, according to this: https://developer.apple.com/forums/thread/127493 I learned something today. Thanks! 🙏

 

[Wildkraut]

While I'm all for a bit of educational and health socialism, this is a corrupt bill designed to line the pockets of the elite in Russia. They've just decided to ride on the wave of Epic in the hope to gain, but the reality, it'll just fizzle out as quick as it came about.

I also feel the same will happen for Epic.

In terms of outcome, there may be some change, but it'll take years for this to develop because ultimately, Google, Microsoft and other app-stores will be subject to the same anti-monopoly rules and the consultation period will take years and years, dragged out by lawyers.

I hope all OS and hardware manufacturers face it, the one more the other less. AppStore monopoly (doesn't matter which company), needs to be regulated by law. Well, Apple is just #1 one in the line, the rest will face it too, or quickly adapt to avoid it.

 

[AndiG]

I'll end up costing us. The current Steam and App Store have been a level playing field where indie developers can shove up a game with no hosting costs and people willing to try it because they trust these stores. As soon as you take away that trust and as soon as these stores have to start charging you for storage and distribution, then we get back to the pre AppStore days where it was prohibitively expensive to sell.

There is a reason why people buy Smartphones - the reason is called Apps ... Do you think Apple will force hundreds of thousands apps out of its stores? Never ever ....

 

[skir]

Some more details from Russian article. 1/3 mandatory payment to some non-yet-existent fund is only applied if a company chooses maximal commission rate (20%). Also Kommersant wrote that this bill is actually against Russian Civil Code's "freedom of contract" (yes, there are some freedoms claimed in Russian law). And also there is no penalty provided for violators.

General opinion is that this bill will probably not be passed (in this form at least). MPs in Russia don't have much individual power, so many bills are generated just for hype.

 

[threesixty360]

Haha... Looks like a mafia shakedown...

It’s going to be hilarious when companies like Epic start charging indie devs even more money in years to come. (As if corporations are not by their very nature designed to extract the most money they can).

The reality of “these people are not you’re friends” will become very real at that time.

 

[farewelwilliams]

Apple maps usage is free?!? I did not know that, but you're right, according to this: https://developer.apple.com/forums/thread/127493 I learned something today. Thanks! 🙏

Yup! Even big companies like Yelp and Facebook are saving hundreds thousands of dollars each month by using Apple Maps in their iOS app instead of Google Maps. Every developer benefits!

 

[2979382]

I hope they all face it, the one more the other less. AppStore monopoly (doesn't matter which company), needs to be regulated by law. Well, Apple is just #1 one in the line, the rest will face it too, or quickly adapt to avoid it.

I'd like to understand why you think app stores should be regulated by law? I don't see the world's richest 1% being regulated by law and being told they have too much money and need to start giving it away. I don't see totalitarian governments being told they have too much power and told to democratise. What you are proposing is moving the monopolies from successful companies to governments. I bet you'd think differently if you had a high stake in Apple or Google...