Russia Plans to Cut App Store Fees Down to 20%; How Will Tech Company or Google React?

Jamie P., Tech Times 02 September 2020, 08:09 am

Russia has a new proposed law that could impact its relationship with tech giants like Apple or Google. The law will soon require game developers to only pay a 20% fee commission to its online application stores. This was 10% lower compared to its standard fees of 30%. Though not alike, it was kind of related to Epic Games problem against the app stores.

Will the 30% commission be changed?

In 2008, Apple started to launch its own app store. It was at the time, the company's decision to implement the 30% commission-rule on game developers that wanted to sell their apps on the platform.

Google PlayStore also followed this format. However, this might soon change, particularly in Russia.

On Wednesday, Sept. 2, Reuters reported that a Russian lawmaker had drafted a new law forcing the app stores to only charge 20% of the commission to developers, which is 10% lower than the 30% standard fee.

As explained, IT developers will benefit more from this lower charges once implemented.

"Lowering the commission and having the ability to bring products to users is a growth opportunity for IT developers," said Russian lawmaker Fedot Tumusov on social media.

Will Apple or Google accept the proposed law?

As of now, Apple nor Google has not yet commented on the proposed Russian law. Earlier reports suggest that this course of action from the government may not be accepted by the tech giants-- unlike what the country assumes.

Maybe another thing on the legislation that needs to be discussed is the prerequisite that Apple or Google must pay a third of their commissions to Russia's government for the funding of its special training for IT specialists.

Lawmaker cited Fortnite's case over the proposed law

According to the Russian lawmaker's Instagram post that proposes the bill, Epic Games Fortnite was one of the best examples of the torn relationship between a game developer and an app store.

"Apple's conflict with Epic Games, Facebook's attempt to inform users about Apple's imputed tax - all of this led me to believe that the problem could be resolved through legislation," roughly translated via his Instagram's post.

Though its not alike, Epic Games was also resistant to App Store's 30% commission cut. It was one of August's greatest controversies that led to the developer deciding to have its own in-app payment system.

Of course, Apple didn't like this idea, resulting in Fortnite's removal on the platform. Epic Games backlashed using the public's outcry and released a trending hashtag of #FreeFortnite and a parody video of Apple's advertisement, which they called 'Nineteen-Eighty-Fortnite.'

Until now, the lawsuits filed by both parties are still being studied by the court.