Big hit to Google and Apple revenues! Is Epic Games right?

4 mins read
Big hit to Google and Apple revenues! Is Epic Games right?

Apple and Google are in danger of being hit by the app revenue bill. The Apple Epic Games case could also go in a different direction.

Big hit to Google and Apple revenues! Is Epic Games right?

The U.S. Senate Judiciary Committee has made a critical decision on Apple and Google app market revenues. Accordingly, the committee found the tech giants’ in-app purchasing commissions too much. In this sense, the Commission approved a bill that would protect the conditions of competition. The bill, which is a blow to Apple and Google in-app purchase revenues, is also likely to change all balances for the Epic Games case.

The bill passed the commission with the support of both Republican and Democratic Senators. In this sense, the bill is likely to become law.

Senate Judiciary Committee sided with Epic Games for Apple and Google app revenues

The U.S. Senate Judiciary Committee is on the agenda with a bill imposing new restrictions on Google Play Store and Apple App Store app marketplace revenues, saying it blocks competition. For Apple and Google, the commission found a 30 percent commission in terms of in-app purchase revenues, Reuters reported.

The commission also paves the way for alternative ways to make in-app payments, which Epic Games has also complained about. In this sense, the apps will have the opportunity to use their own alternative in-app payment methods besides Google and Apple payment methods.

Google and Apple reduced the 30 percent commission fee due to the pandemic conditions of payment methods. The Commission, on the other hand, does not consider this temporary practice sufficient even if it becomes permanent. In particular, the commission says these commissions cause consumers to spend more on in-app payments.

Apple and Google claim that the bill will disable protections that prevent apps from accessing personal data. In this sense, Apple sent a letter to the commissioners before the bill passed. Apple is concerned that this bill will compromise the personal privacy and security it has increased in recent years. Google has a similar concern. Accordingly, Mark Isakowitz, Google’s Vice President of Public Policy, issued a statement after the decision:

“We have made clear our concerns to Congress. This bill could destroy many consumer benefits that existing payment systems provide and distort competition by exempting gaming platforms. This means that Congress is trying to artificially select winners and losers in a highly competitive market.”

How’s the Epic Game, Apple court?

Epic Games had an Apple and Google alternative payment method as an in-app payment method for Fortnite. In this sense, both Apple and Google deleted Fortnite because it violated the market rules. Epic Games, on the other hand, has filed a big lawsuit with Apple, especially for the App Store, where it generates big revenue.

Apple, Epic Games case ended in early December after Apple was cleared of nine of ten charges. Epic Games, however, has taken the case to the appeal stage. However, it is important to remember that the court found Apple guilty of blocking alternative payment methods. In this sense, this new bill is likely to put both Apple and Google in trouble with app revenues.

This new bill was introduced on the U.S. Senate Judiciary Committee with the support of Democratic Senators Richard Blumenthal and Amy Klobuchar, as well as Republican Senator Marsha Blackburn. The bill passed by the commission will be debated later in the US Congress.

Are Apple and Google really getting a high commission in terms of app revenues? You can leave your opinions on this topic to the ShiftDelete Forum and comments.

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