The US Senate Judiciary Committee made a critical decision for Apple and Google app market revenues. Accordingly, the committee found the in-app purchase commissions of technology giants excessive. In this sense, the Commission approved a draft law that will protect the conditions of competition. The bill, which is a blow for Apple and Google in-app purchase revenues, has the possibility to change all the 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 revenue
The US Senate Judiciary Committee is on the agenda with a bill that imposes new restrictions on the Google Play Store and Apple App Store application market revenues on the grounds that it blocks competition. According to the news of Reuters, the commission found 30 percent commission in terms of in-app purchase revenues for Apple and Google.
Google and Apple app revenues are critical for both companies.
In addition, the commission paves the way for alternative ways for in-app payments, which Epic Games is also complaining about. In this sense, applications will have the opportunity to use their own alternative in-app payment methods, apart from Google and Apple payment methods.
Google and Apple payment methods had reduced the commission fee of 30 percent due to the pandemic conditions. The Commission, on the other hand, does not find this temporary application sufficient even if it becomes permanent. In particular, the Commission is of the opinion that these commissions cause consumers to spend more on in-app payments.
Apple and Google, on the other hand, claim that with this bill, the protections that prevent applications from accessing personal data will be disabled. In this sense, Apple sent a letter to the commission members in this manner before the bill passed. With this bill, Apple is concerned that the personal privacy and security that it has increased in recent years will be in danger. Google has a similar concern. Accordingly, Google’s Vice President of public policy, Mark Isakowitz, made a statement after the decision:
“We have made clear our concerns to Congress. This bill could destroy many of the consumer benefits that existing payment systems provide and distort competition by exempting gaming platforms. That means Congress is trying to artificially pick winners and losers in a highly competitive market.”
What about the Epic Games, Apple case?
Epic Games had an alternative payment method to Apple and Google as an in-app payment method for Fortnite. In this sense, both Apple and Google deleted the Fortnite game because it was against market rules. Epic Games, on the other hand, embarked on a big lawsuit with Apple for the App Store, where it earned a large income.
For the Apple and Epic Games case, this bill could lead to new developments
Apple, The Epic Games lawsuit concluded in early December, with Apple clearing nine of the ten charges. However, Epic Games has taken the case to the appeal stage. However, it should be remembered that the court found Apple guilty of obstructing alternative payment methods. In this sense, there is a possibility that this new bill will put both Apple and Google in trouble in terms of application revenues.
In the US Senate Judiciary Committee, this new bill came up 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 then be discussed in the US Congress.
Do Apple and Google really take a high commission in terms of app revenue? You can leave your views on this subject in the ShiftDelete Forum and comments.
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