The Monopoly of Big App Stores: A Closer Look at Google Play and Apple

In the digital age, mobile applications have become an integral part of our daily lives, offering convenience, entertainment, and productivity at our fingertips. However, behind the seemingly endless array of apps lies a landscape dominated by two major players: Google Play and Apple’s App Store. While these platforms have undoubtedly revolutionized the way we access and consume digital content, they have also come under scrutiny for their monopolistic practices.


The Dominance of Google Play and Apple’s App Store

Google Play and the App Store collectively control a significant portion of the global app market, with billions of users and millions of apps available for download. This duopoly gives them immense power over developers, users, and the digital economy as a whole.


The Monopolistic Practices

  1. High Commission Fees: One of the most contentious issues surrounding Google Play and the App Store is their hefty commission fees. Both platforms typically charge developers a 30% commission on all sales and in-app purchases, significantly impacting the revenue potential for app creators.
  2. Limited Payment Options: Google Play and Apple’s App Store mandate the use of their own payment systems for in-app purchases, prohibiting developers from using alternative payment methods. This not only restricts consumer choice but also ensures that the platforms maintain control over transactional data and revenue streams.
  3. Exclusionary Policies: Both Google Play and the App Store have been accused of employing exclusionary tactics to maintain their dominance. This includes preferential treatment for their own apps and services, as well as arbitrary enforcement of app store guidelines that can result in the removal or suppression of competing apps.


Legal Challenges and Court Rulings

Over the years, Google Play and Apple’s App Store have faced numerous legal challenges related to their monopolistic practices. Some notable cases include:

  1. Epic Games vs. Apple: In 2020, Epic Games, the creator of Fortnite, filed a lawsuit against Apple after the tech giant removed Fortnite from the App Store for violating its payment guidelines. The case brought to light concerns about Apple’s control over app distribution and in-app purchases.
  2. European Commission vs. Google: In 2018, the European Commission fined Google €4.34 billion for violating antitrust laws with its Android operating system. The commission found that Google had imposed illegal restrictions on Android device manufacturers and mobile network operators to maintain its dominant position in the market.

Conclusion

While Google Play and Apple’s App Store have undoubtedly transformed the way we interact with mobile technology, their monopolistic practices have raised significant concerns about competition, innovation, and consumer choice. As regulatory scrutiny intensifies and legal challenges mount, the future of app store monopolies remains uncertain.

Footnotes:

  1. Epic Games vs. Apple: Link
  2. European Commission vs. Google: Link
Monopoly Boardgames” by Suzy Hazelwood/ CC0 1.0