Tinder Bypasses Google Play, Joining Revolt Against App Store Fee
bloomberg.com
bloomberg.com
Again, I am genuinely curious what ethical principle am I missing here.
For Apple, however, things aren't as nice and shiny. They force you to distribute and get apps through their store. They don't let you distribute your apps easily otherwise. You don't have a choice of sharing a piece of your app price with Apple or selling it through your website as a package, or through any other app store.
In this situation of non-competition, some very crucial assumptions about the efficiency of free markets break down entirely. I think hardly anyone is debating that apple/google make some money for the infrastructure they provide. But the amount they take would be significantly lower if there was real competition. Which there really isn't. That's what's called "rent extraction" and basically just means you're extracting more money for something than would be needed to make you do it in the first place. Would google/apple still be motivated to provide the same service if their cut was halved? Probably. It would still make a killing. But their dominant position allows them to take more, so they do.
TL;DR: At the base, your question (for me) really boils down to "why should there be any rules for corporation at all?" To which I would answer: because if left completely to their own devices, that would be a bad system for nearly everyone, except the very few at the very top.
According to this: https://support.google.com/googleplay/android-developer/answ...
These countries do not support merchant accounts: Antigua and Barbuda Angola Aruba Barbados Benin Bermuda Bosnia and Herzegovina Botswana British Indian Ocean Territory British Virgin Islands Burkina Faso Cameroon Cape Verde Cote d'Ivoire El Salvador Equatorial Guinea Falkland Islands Faroe Islands Gabon Georgia Gibraltar Greenland Liechtenstein Mali Monaco Montenegro Morocco Mozambique Nepal Netherlands Antilles Rwanda San Marino Senegal Serbia Seychelles Tajikistan Togo Turkmenistan Vatican City
Some of those are in Europe, but which in particular were you concerned about?
How does it matter? Are you or do you know someone at Alphabet who is able to help? :)
I'm sure they weight a ton or more when combined.
30% of a $50/month SaaS service just so a client can have a mobile front for something they mostly use on a desktop? Surely that's ridiculous
There’s only one app store for Apple device and Apple fought tooth nails to ban jailbreking and forbidding any other app store like system.
There’s only one extensive app store for android and Google forced it down the throat of any maker that wanted Google’s service libraries which tons of apps learned to rely on.
Platform owners have been playing dirty in a lot of aspects, I think it’s game for service owners to find workarounds or get out of paying a cut to Apple or Google.
I think nobody goes after consoles for now because there is no big enough business case getting hurt, and they’re kind of grandfathered in people’s perception.
This is incorrect. F-droid is quite extensive.
Google Play: 3.5 million apps App Store: 2.2 million apps F-Droid: 1,878
Several orders of magnitude off.
- It doesn't cost them that much anymore. Their cut is absurdly high. For apple it was a profit of 21.7 Billion last year from other people's apps , in exchange for whatever minor changes they made to their app store. Does it really cost even 1 Billion to keep the app store running?
- They should be more transparent about their numbers. How much does an app developer make? Their opaqueness is self-serving (attracting developers to work for them in the dark, basically). Their PR machine (like the article i 'm linking) is too loud and i believe misleads developers regarding what to expect from app revenue.
- Freedom is a benefit for the consumer, apple has way too many restrictions on the kind of apps i can have on my iphone. Whether it benefits the consumer or not is highly debateable.
- The lock-in of developers is real, it's built with dirty tricks, and i pity those devs who are bound by it.
https://www.cultofmac.com/601492/app-store-google-play-reven...
I don't think majority of people complaining are actually about the cut, but how much of the cut. And 30% is what a lot of people disagree with.
The reality is somewhere along the line Apple got too focused on their 20% Net Margin, they put themselves into a price corner. Before the iPhone era Apple mostly do ~10% Net margin, and at best some one offs ~13% quarters. Not only has Apple earned 30x the revenue post iPhone's introduction, that have also doubled their margin.
But then Pricing is only one part of the equation, it is the value on offer that matters, which is fundamentally what people are complaining about the App Store as well as iPhone 's prices.
We'll be able to tell if they're right by looking at whether the 30% savings offset the increased costs and lower install rates. The fact that developers are able to realistically try this out is a sign that the market is working as intended.
This is why Google's model of allowing 3rd-party stores is (imo) a pretty direct improvement over Apple's -- it allows us to run these kinds of experiments. Why waste time having a philosophical argument about whether or not Google's cut is fair when we can just test the hypothesis directly?
The other idea I want to push against is that because Google built a platform, they're entitled to continue to make money on it. That's just not how capitalism works -- "value" here is what the market will pay you, it has nothing to do with whether you did something good in the past. Google may have put a lot of resources into creating an amazing platform, but if being listed on the store is not currently increasing profits for large apps like Tinder after fees, then the cut isn't fair.
Their past contributions to the app ecosystem don't matter.
This goes back to what I was saying about whether or not a business should be owed some kind of 'gratitude' over past actions. There's no rule in a capitalist system that says you owe someone continued patronage just because they used to provide you with a good service.
It's all about what value Google is providing right now -- the past benefits are irrelevant.
Google already has special deals for companies that lowers the 30% fee significantly.
(I think even 2-3% fee is too much for doing basically nothing, but that is another discussion).
My guess is that the play store fee works more like a tax on a closed ecosystem than a price for a service. For example, when the government needs to pay for a more expansive healthcare bill, they may decide it makes more economic sense (or is more politically viable) to raise the additional funding through a tax that doesn't go back to most of the people who receive the benefits. So maybe they raise capital gains taxes, etc.
Likewise, while Google is an ads company, and running Android does benefit them some in that regard (e.g. ecosystem lockin), they're not running it as a charity. Android being given away for free, and many phones being subsidized, both benefit a lot of people, and because Google has more or less complete control of the market, they've decided the best way to pay for it is to tax the Play store, instead of charging those people for the benefit.
They important thing I'm trying to point out here is that they could do it differently - they could charge for Android, or require subscriptions to use more of their services, but they've decided the best way to monetize is through the store. In this case, the question of whether the fee is "reasonable" for what Google provides to app developers isn't quite as significant as it would be were Google simply providing a product on the free market.
But in this case I suspect you're both right, anyway, and this likely has more to do with data collection.
It's not a closed ecosystem anyway, I think. As far as I can tell, all the devices that officially have Google Play, also allow other applications to install APKs; now in a very fine-grained and straightforward way (as of Android 9).
<1% ?
If Google came up with a magical technique to get rid of all malware on their app store that didn't cost them a dime, you could still argue that they're adding value to justify the 30% cut.
If Google spends a billion dollars to get rid of all the malware on their app store, and it doesn't work, and using the app store is not significantly less dangerous than sideloading apps, then they're not adding any value to justify the 30% cut.
Note that I don't think Google's efforts are completely fruitless. At the very least, they seem to help with taking down duplicate apps, and that's something. But whether or not moderation is valuable only depends on whether they succeed or not -- their effort is irrelevant.
With nobody to filter out impersonators and repackaging of an app with added malware ?
Google will probably approve anything that's not an obvious malware but not much more than that
For example Chinese hackers added hidden code to 34 legit apps totaling 500 millions downloads and Apple didn't notice a thing.
https://www.macrumors.com/2015/09/20/xcodeghost-chinese-malw...
Happy now?
Developing The Android platform is a benefit for Google, not for the app makers.
30% is ridiculous for Apple and Google. It's an arbitrary number that they could get away with when the Appstore came out nine years ago and everyone ran with it ever since.
I don't know what a fair amount is. But I doubt it's in the two digits.
When Apple announced 30% cut, mobile devs where cheering, because many providers were charging way above 50%.
Well, I guess Symbian got N-Gage and the Ovi Store towards the end, but they never tried to lock it down against third party sources.
You just have one large customer in one country instead of thousands/millions in many different jurisdictions each with its own tax and consumer protection laws. That's worth more than 2.5% but it's not worth 30%.
I would say fair is somewhere between 5% and 10%, considering they also provide some distribution infrastructure on top of payments, billing, taxes and compliance.
The ecosystem may be better off with something like 20c + 20% transaction fees. But, a flat percentage needs to be surprisingly high just to breakeven.
Yes, you shouldn’t float a balance on your card - but the average person often does.
They can start their own currency, but only facebook is going that way and it takes a long time.
Yea 2% fee is too much because bandwidth is free.
Handling publication, payments, giving exposure and direct access via the play store, approving the apps, rejecting impersonations, the play store platform actually does a lot of stuff.
I agree that a 30% fee is a lot and probably way too much, but claiming that they do nothing is just ridiculous.
Source?
IIRC this change was introduced in API 23 (marshmallow), now a while ago.
Before that Android version, permissions (such as accessing your contacts or your calendar, using the camera sensor, etc) where requested and given at installation time.
23 introduced runtime permission : now you don't get the permissions at install time but at runtime : while the app run it incrementally asks to access your contacts, camera, or whatever else it needs.
But there is an issue : how to handle all the existing apps ?
What happens is that apps declare which sdk version they are targetting when they are compiled. If that version is 23 or higher, they get the new behavior.
For apps targeting 22 or less though, the system fallbacks to the previous behavior.
This way apps don't suddenly break when you update your phone and apps already published on the play store don't have to handle this change right away.
Most apps, especially popular ones have been pretty quick to follow these new targets.
However, some apps (cough like snapchat cough) have seen a loophole there and have been keeping their target sdk very low so they don't have to follow new behaviors.
So a couple of years ago Google decided to address that : now if you want to publish a new app, you have to target an android version that is at most one year old. App updates have the same rule, although IIRC the period is a little bit longer.
So it is no longer possible to game a system that is only there to gracefully handle old apps.
I have mentioned runtime permission because it is one change that is easy to explain, but each Android version has several behavior/security changes like this one, so enforcing this rule is definitely for the best.
You have always been able to collect subscription fees on your own website and distribute your app for free.
>TechCrunch learned this week that Netflix is testing a payment method that bypasses iTunes in 33 countries. Until Sept. 30, new or lapsed users in select European, Latin American and Asian markets will be unable to pay using iTunes. Instead -- like with Spotify -- they will be redirected to Netflix's website to enter payment details directly with the video streaming service. In May, Netflix made a similar move prohibiting new subscribers from paying via Google Play.
https://www.billboard.com/articles/business/8471988/spotify-...
Which is why Prime Video on the App Store doesn’t allow any rentals for example.
The kindle app offers no way to purchase for this reason.
Neither Google or Apple do that.
Of course, even if you set up your own payment infrastructure you are going to be paying somebody a cut.
Visa, MasterCard, PayPal, and Stripe et al. are going to take a cut of any transactions they process.
You have to decide if the fee they charge is worth the additional sales accepting that method of payment might bring in.
I have worked for a major music streaming service for a long time and publishing the app on iOS has been a constant pain.
Sometimes the app was not updated for months because apple would not validate it.
Each time the source of contention was that you could subscribe without using apple solutions (paying them) and that the subscriptions covered all platforms.
>> 2.3.2. If you want to unlock features or functionality within your app, (by way of example: subscriptions, in-game currencies, game levels, access to premium content, or unlocking a full version), you must use in-app purchase. Apps may not use their own mechanisms to unlock content or functionality, such as license keys, augmented reality markers, QR codes, etc. Apps and their metadata may not include buttons, external links, or other calls to action that direct customers to purchasing mechanisms other than in-app purchase.
Your app will be booted off the App Store if you try to redirect users from your app to an out-of-app purchase system
Netflix and Spotify do not actively redirect users to their own payment systems (in the U.S., at least). They do not provide any links, nor do they offer any instructions on how to sign up outside the app. They just say this:
Netflix: "You can't sign up for Netflix in the app. We know it's a hassle. Join and come back to start watching TV shows and movies."
Spotify: "You can't upgrade to Premium in the app. We know, it's not ideal."
The user is left completely on their own to figure out the subscription process. Netflix and Spotify are apparently big enough, and have enough consumer awareness of their services, that users will put in the effort to go sign up. For your app, this is almost certainly not the case.
2nd paragraph: > The online dating site launched a new default payment process that skips Google Play and forces users to enter their credit card details straight into Tinder’s app, according to new research by Macquarie analyst Ben Schachter.
If you're a tech startups engaging with end-users, right now there seems almost no way around offering an iPhone and Android app to accompany your product or service. There are whole sub economies where the app is the product.
Yet app stores are basically private property where the companies running the stores can set (and change) arbitrary rules and regulations. If a rule change means your app is no longer viable and that app was your product, sucks to be you.
Shouldn't at least the free market crowd object against a whole economy being at the mercy of two companies?
It's not the whole economy, unless google+apple conspire to regulate the market to prevent others from entering. Frankly, developers are free to leave the platform and we should be telling them to get out. We 've had enough of google+apple fanboys telling everyone that they must make an app for that. We don't have to, and it's like shooting yourself in the foot. Very few developers are successful and we 're better off working on open platforms. And also, most mobile ads traffic is fraudulent. Stop advertising your stuff on mobile.
Not to pick on you specifically, but this view is way too wrong to be so common.
The information economy is fundamentally different from the industrial economy for (at least) two reasons:
- Extremely high capital intensity
- Positive reinforcement through network effects (same and cross-side)
As a result, market concentration in information and technology markets is extremely high compared with other industries. It's not a conspiracy, and it's not something anyone can change. It's just the nature of the product itself.
There are a few strategies to combat it (open source, adversarial interop, etc...) but "just build your own" isn't one of them. Because it's almost always impossible in practice.
Yeah, you could build that capital for yourself rather than for a big company, if you wanted to; that doesn't mean it wasn't expensive.
That, and I think that big successful projects take a lot more than just someone who can build a decent website. Take friendster... one of my favorite examples 'cause it was one of the real-world cases of a company dying due to insufficient resources being put into systems administration and scaling. They were in the right place, at the right time, with the right product to become what facebook is now; they got traction, but due to performance and reliability issues, they ended up leaving an opening for Facebook to come in and eat their lunch.
And even getting to the point where facebook was is really hard.
I mean, it happens; Craigslist is a famous example, but usually you need more than one engineer worth of capital to build one of these things, and you need more than just engineers.
it wasn't, at all, if you re comparing it to almost any other industry sector
I mean, sure, a business starting with a million bucks is unlikely to become a multi-billion dollar business, but... I think it's a reasonable amount to start a reasonable business... and I think that's how McDonalds, at least, got it's start.
If you work in the industry and aren't familiar with concept yet, it's something that you would greatly benefit by reading up on. Capital intensity is about the RATIO of capital costs to operating costs. Compare the cost of developing a website with the cost of operating it. In general, the former are much higher than the latter--though there are some exceptions.
Actually, the total (absolute, not the ratio) cost is related to a third factor I didn't even list--constant or increasing returns to scale. This means that products can be VERY expensive to develop before an extra dollar of investment won't result in more than one additional dollar of profit. No surprise that there's a synergistic relationship here with capital intensity (very low per-unit costs). This isn't going to be super-applicable if you're building websites for small companies, but if you consider how much it would cost to develop a commercial operating system that was on par with what's currently out there (Android/iOS/Linux/MacOS/Windows/etc...) it would many millions on the low end to billions if you couldn't rely on open source.
> Capital-intensive industries use a large portion of capital to buy expensive machines, compared to their labor costs. The term came about in the mid- to late-nineteenth century as factories such as steel or iron sprung up around the newly industrialized world.
i dont know, computers are dirt cheap, and IT is famous for being particularly easy to enter into as a sector. I don't think i m the exception
Compare the cost of creating software (often many millions) to the per unit cost of copies of that software (zero).
Compare the cost of developing a new processor architecture and setting up the manufacturing plant (billions and billions) compared with the per-unit cost.
Compare the cost of building out a physical network infrastructure to cover a city (many millions) compared with the cost of connecting a single user to the box down the street.
Compare the cost to create all of Facebook's hardware and software infrastructure to the marginal cost of adding one more user to the platform.
With Apple, you have no proper way running an app without Apple. So it'll intriguing to see such act within a platform that is truly locked.
If Tinder requested this update be sent to Apple users than the review process would reject the update. The Play Store doesn't put a person in the app update loop.
It's a distro, you can still install extra stuff
That's how developers install their own apps in development, prior submitting the app to Apple for a review.
There are enterprise distribution certificates that don't have these restrictions, but using them to distribute apps outside of the company will end up getting it revoked. (Like what happened with Facebook)
As for the distribution, you can distribute your App open-source and let your users compile and install it themselves.
Yes yes, it's not like what we have on the PC's but the situation is definitely not "you cannot install apps that Apple has not approved".
The reality is this: You cannot mass distribute proprietary App's that Apple has not approved.
Because non-technical users will surely do that.
> The reality is this: You cannot mass distribute proprietary App's that Apple has not approved.
I feel this is the only point relevant to this post.
Yes, you can invite your developer friends to try out the app you wrote yourself. But if you actually want to make money from it, you need Apple's approval.
A step in the right direction for software as a whole.
The AOL/compuserve internet that we all thought we won against is here again. The walled garden is our reality.
This new trend could be the start of crumbling of the second wave of walled gardens. Open platforms allow for freedom (as in speech) and innovation that isn't so easily snuffed out by incumbents - a good thing for consumers.
Tinder and others averting the rent-seeking behavior of google signals that companies have realistic options in the fight against their sharecropping lords.
This movement could also help win the fight for opening up the iOS platform in the coming legal battles - the fact you can do this on android and not iOS might be significant.
The net is consolidating and so the wheel will turn again. Long live the decentralized, open net!
That the robber baron who owns the papers can say what he wants doesn't mean much to the man who is a black list for the rest of his life.
Freedom of speech is not freedom of consequences indeed.
Edit: just reread grandparent, the tinder tax doesn't make sense and your example was valid. Apparently I haven't had enough coffee to read properly yet.
If Google or Apple collect the payment, you're paying Google or Apple, they take a cut, then a portion goes to Tinder.
Guess which one results in Tinder raising their prices?
You could argue that the app stores aren't a charity and don't operate for free - that they need money to exist. I'd argue that the app store model itself doesn't need to exist and that it's a form of greedy rent-seeking and power thirst. Besides, neither Apple nor Google are hurting from their phone monopoly.
A true first class distribution model would allow you to install directly from the web without messing with settings. Perhaps even running as WASM seamlessly out of the box, never once switching contexts into a storefront.
If we'd done it this way from the beginning we'd have true cross-platform apps written in WASM with full native experiences. Microsoft still might have their phone, too. But things didn't evolve that way, sadly... Apple and Google wanted their control and walled gardens.
Of course, to reach true parity now we'd have to remove the app store to let web distribution catch up in the minds of consumers. But that will never happen unless we can lobby for antitrust breakups of these titans.
The biggest improvement on the smartphones in this regard is not the app stores themself, it's the very tight sandboxing of apps that is the real enabler of the ecosystem. With such a good sandbox we could be installing apps from anywhere on the web as we did on windows before but at the same time not risk our whole system in the process as we did before.
Does privacy not concern you?
Granted, Google probably is quite supportive of users vs app vendors, but the risk of losing their Google account is gigantic for many users, and there's no useful way to appeal (unless you happen to be in luck, your complaint goes viral and somebody from Google manually intervenes).
Unless you're referring to worries about giving out your payment information to "random sites"? If so, that's dumb because it's 2019 and there are tons of dedicated secure payment processors out there. Very few companies would even be willing to process payments themselves.
Any effort to take power away from Google's iron grip on the internet is good unless you're a Google employee or shareholder.
Perhaps they do, but the headline "X leaked data of millions of users" is more likely for X=Tinder than for X=Google, if you ask me.
The only thing that the actual vendor should see is a purchase from "a Discover customer."
Hell, for most online transactions I would like to proxy the whole thing. If I could give money to someone to buy things on my bealf and put their name, address, and shipping info instead of mine and then ship it to me I absolutely would every single time.
Many payments on the web are done by handing over payment card details and trusting the merchant to bill the correct amount.
The alternative is to use a middle-man like PayPal.
It's absurd that the banks and credit card companies haven't come up with a better solution than handing over your card details and taking it on trust, but here we are, and online sales are doing fine.
It's a regular occurrence for companies of all sizes to fail to protect customers' payment card information. For some reason, no-one talks about how preposterous is it that we still handle many online payments through total trust.
Little comfort knowing your card details will eventually expire, especially considering that they no longer really do [0]
As you say, far better to go the PayPal route, despite their considerable problems [1]
[0] https://twocents.lifehacker.com/some-bill-providers-will-aut...
On a side note, I launched Tinder recently to poke around and I see they're now offering read receipts as a feature. Purchasing "Tinder Gold" to see who has "liked" you, I can understand. Getting read receipts though? Ehh, it feels a bit far.
Don't get me wrong though, it's fully what I would expect from any VC funded entity. You've gotta keep showing growth until the end
People seem to prefer it at large. If you turn off read receipts on WhatsApp, then it disables them for you too. Yet I'm not sure I've seen anyone disable it.
KakaoTalk [0] does this and I end up just having way more notifications because I don't want to leave someone "on read" until I get around to responding. Actually, many, if not most people "read" incoming texts via the preview from notification centers so they can read it without feeling like they have to respond right then.
I hate how it conditioned me over time to check repeatedly to see if someone had read my text or not. You could argue that they might've just wanted to respond later, but that's not the "culture" of how kakaotalk is used generally. I have some friends that take anywhere from ~3 days to 2 weeks to respond but they don't open the text until then. I vastly prefer imessage or other apps now simply because I can toggle off read receipts.
[0]: kakaotalk is the messaging app of Korea. I don't think I've ever had someone send me an actual text or phone call outside of KakaoTalk. Line (Japan) is similar and also has read receipts unfortunately.
> poke around
Hahaha I'm sorry, I know this doesn't "stimulate intellectual curiosity" per the rules, but I couldn't let that sentence go given the colloquial meaning of the word "poke".
Here's what I want to do to cancel something: Click on play store. Click on subscriptions. Find the one I don't want. Click on "Cancel", click on "yes, cancel"
I'm going to bet you aren't tinder demographics ( which is basically 18-30). These people grew up on the internet and they grew up on easy payments. It is paypal/venmo/applepay/google pay. Credit cards ( not revolvers, but credit cards as a method of accessing a revolver ) is a relic of previous century.
So, rather than get your money back from a fraud, you'd just let them have the money and you'd just cancel the subscription?
Or are you talking about lying and committing fraud yourself by claiming "fraud" when there was actually none and you just wanted to cancel a subscription?
Which one is it? I just want to understand which one you are talking about here. It can only be one or the other in the context of your comment.
If it charged me for a month extra that i don't know, i get a notification and get it refunded via Google play store the same day.
That's the current workflow. Single location. All Google Play based subscriptions. No need to deal with a card replacement.
That's what Match is against.
The 30% cut is fine. It's well worth it for everything App Store/Google Play gives you as a dev.
Apple basically says that any digital goods purchased through an iOS app needs to pay Apple's 30% fee. This includes things like subscriptions and in-app purchases. I really noticed this with Audible, you can search the store but are not able to buy anything in their app on iOS.
My issue with apple is not that this fee exists, but that it is truly anti-competitive. Apple does not allow users to install apps outside of the app store. They also are holding back things like PWAs from being viable alternatives for very similar reasons (I'm looking at you Web Push notifications!).
Google's ecosystem on the other hand is more open. You can install APKs from anywhere and there are even third-party app stores like F-Droid. I honestly don't know if the play store has the same rules as Apple does, but even if they did i'd be ok with that because users and companies do have other options if they don't want to use Google Play.
The argument for me is do you want to be on the App store for the exposure/convenience of disribution or do you do it because there is no other alternative. The former is a marketplace with an audience and the ladder is a monopoly.
Even though the Play Store is full of malware and spyware.
By tolerating a tyrannical middleman for short term gains, you justify their unreasonable claims of value addition
You'd think the costs would trickle down to the consumer.