Apple and Google receive a 30 percent share from the developer in in-app purchases made through the App Store and Play Store. E-commerce giant Amazon gave up selling e-books and similar digital content in its iOS app last year in order not to pay a commission to Apple.
The company started to implement the same decision on Android. According to the news of the BBC, all digital content purchases, especially e-books, have been stopped in the “Amazon Shopping” application in the Google Play Store. It is discussed that this decision may negatively affect Amazon’s revenues from digital sales.
Now redirects to Amazon website
Those who want to buy e-books now have to use Amazon Kindle. Those who want to buy and download other digital content that Amazon sells will be directed to amazon.com. The company allows video and music playback from its mobile app, but this feature may be removed soon.
In its financial report covering the first quarter of 2022, Amazon reported a total loss of $3.84 billion, or $7.56 per share. In the first quarter of 2021, it announced a profit of $ 8.1 billion. While the company expects its net sales to be between $116-121 billion in the second quarter; Analysts are expecting $125.5 billion.
By the way, Amazon doesn’t just avoid paying commissions to app stores. Last November, the popular financial services provider announced that it would not accept credit cards in the UK due to a dispute with Visa over transaction fees. In January, he reversed this decision.
Gaming giant Epic Games also suffers from the 30 percent commission policy of technology companies. Two years ago, he tried to avoid paying Google and Apple stakes by implementing his own payment infrastructure in Fortnite. However, this move backfired and Fortnite was removed from the App Store and Google Play Store.
On the other hand, Elon Musk, who bought Twitter for 44 billion dollars, harshly criticized the company with the statement that “Apple’s earnings are 10 times more than it should be”. In accordance with the legal regulation enacted in South Korea, Google announced that it will allow alternative payment systems in the Play Store. However, he will continue to receive commissions.
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