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Better title: Google matches what Apple already did. I said it about Apple and I’ll say it about Google: this is a PR move, nothing more. Google really missed
by cletus 6y ago
Better title: Google matches what Apple already did.
I said it about Apple and I’ll say it about Google: this is a PR move, nothing more.
Google really missed an opportunity here to put Apple in a tough spot by just cutting it to 15%.
Your biggest users of your payment infrastructure are also the most likely, most willing and most able to handle their own payments because they already do (eg Netflix, Epic).
If either company has reduced their cut to 15% for only their largest customers then this would make sense as a business decision. Doing the opposite is trying to stave off government intervention, nothing more.
The writing is on the wall for being the sole payments provider AND charging 30% for it. The only question is what they will be forced to do and (imho) you’re better off placating your biggest customers because they’re the ones who will likely sue you and lobby against you in the US/EU.
- hu3 6y agoGoogle's proposition is better still. If I make $2 million on Apple i'll have to pay $600k in fees. On Google it's $450k.
- cletus 6y agoDoes Apple really do that? If you make $1m, they'll take $150k but if you make $1 more they'll take $300k? Really? I assumed it wouldn't be that dumb. Is it really the case?
- Dylan16807 6y agoIf you can convince apple to let you into the 15% program and then hit $2M, you'll pay $450k for that year and then get kicked out of the program. Subsequent years you will pay $600k if your revenue stays the same. If your revenue drops below $1M at some point, you'll have to pay 30% for that year, but the next year you'll be able to re-enter the program.
- hu3 6y agoIt's that dumb and convoluted like Dylan16807 explained.
- dannyw 6y agoIt is the case.
- bogwog 6y ago> Google really missed an opportunity here to put Apple in a tough spot by just cutting it to 15% Why would Google want to start a bidding war here? They're both monopolies and they don't compete with each other. If Google lowers the fee to 5%, that's not going to convince developers (and their customers) to leave iOS for Android; it's just going to shift revenues out of Google's piggy bank and into developers' piggy banks in the best case. In the worst case, it will increase anti-trust scrutiny, either because Apple doesn't lower it so they're showing they don't need to compete, or they do lower it despite it being an illogical business decision (and possibly inviting lawsuits from shareholders), suggesting that there's some collusion going on to stave off anti-trust regulation.