App stores are in the crosshairs of regulators around the world, threatening the privacy and security of consumers in jurisdictions throwing the red tape at companies. The E.U. has preliminarily found that Apple has a monopoly and is abusing its market power in the distribution of music streaming apps. In the U.S., several states are considering legislation to regulate the platforms. Epic Games is currently suing Apple in District Court in California. Regulating app stores is a bad idea at the continental, federal or state level. There simply isn’t the consumer harm to justify these regulatory interventions.
App stores are digital distribution platforms for apps, used mostly for mobile devices and tablets. End users can download apps from their device’s built-in app store or, in some cases, an alternative app store or website. App developers pay anywhere from nothing to 30% commission to the two biggest app stores, Apple’s App Store and Google’s Google Play, depending on the circumstance. That’s in line with industry averages for app stores and consoles.
This arrangement has surely generated profits for app stores, but it has also facilitated a great amount of wealth for app developers and third-party businesses. Apple, for instance, reports that $441 billion went to those parties via their App Store globally in 2019 alone. It’s hard to imagine that most companies could achieve that kind of distribution and revenue without the help reaching millions of potential customers app stores like Google’s and Apple’s provide. But any developer who doesn’t think so, has many alternative app stores that cater to specific types of apps or geographical areas available from which he can choose.
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