Google Play Store App Revenue capped in Russia

Apple and Google may soon receive a cap limit of 20% on their app stores. Both the Apple App Store and Google Play Store, at least, in Russia, would be limited when it comes to the commission they get on mobile apps and related purchases. A lawmaker has recently submitted draft legislation that would cut the revenue of the two major companies in Russia. It was lawmaker Fedot Tumusov who passed the bill at the lower house of parliament in the country.

The 20% cap will mainly be felt by Apple who presently collects a 30% commission. The bill will also require them to pay a third of the commissions received quarterly to a special training fund for IT specialists. Tumusov believes this is a “growth opportunity for IT developers”.

If you may remember, Apple and Google have a recent rift with Epic Games. The latter challenged the two app stores by making changes to its payment method. Apple and Google deleted Fortnite. Lawsuits were thrown at one another but a US federal judge already blocked Apple from closing down a tool used by Epic Games.

The anti-monopoly service in Russia is saying Apple is abusing its position on the mobile apps market. It wants Apple to rethink its violations. The discussion is only being done in Russia but we won’t be surprised if similar moves will be done in other countries.

Apple and Google have been receiving up to 30% of app sales and in-app purchases. It is a common business practice but it seems many developers are no longer happy with the system. It’s being challenged now by a lot of forces. Let’s see how this story will end.