Latest news with #inapppurchases
Yahoo
01-08-2025
- Business
- Yahoo
‘Only a Monopoly Can Pull That Off': Billionaire Grant Cardone Calls Apple's 30% App Store Fee 'Insane'
Grant Cardone, a prominent real estate investor, entrepreneur, and business educator, has publicly questioned the legitimacy of Apple's (AAPL) long-standing 30% commission on in-app purchases, describing it as 'insane' and suggesting it is only possible for companies with monopolistic power. 'The fact Apple charges developers 30% on in-app purchases is insane. No company should be able to make 30% of gross fees charged,' Cardone wrote on X in July. He continued, 'There's no justification for it & it cost the end user. Only a monopoly can pull that off.' More News from Barchart Morgan Stanley Says Nvidia Has 'Exceptional' Strength. Should You Buy NVDA Stock Here? Dear MicroStrategy Stock Fans, Mark Your Calendars for July 31 2 Growth Stocks Wall Street Predicts Will Soar 74% to 159% Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Cardone's perspective is based on his extensive experience as both an entrepreneur and outspoken advocate for small businesses. Having built a multi-billion-dollar real estate portfolio and a portfolio of media and education businesses, Cardone frequently touts competitive openness and strategies to empower individuals and organizations in markets often dominated by major players. His business philosophy revolves around challenging industry norms and questioning practices that disadvantage smaller participants, as reflected in his criticism of Apple's fee structure. For more than a decade, Apple enforced a 30% commission on all revenue generated through in-app purchases on its App Store, a model that became a significant source of revenue for the company and an industry benchmark. Apple defended the fee as necessary to support platform maintenance, security, and distribution, yet many developers and business leaders argued it stifled competition, limited consumer choice, and cut deeply into the already narrow margins of app makers. Notably, Cardone's assertion that 'only a monopoly can pull that off' resonates with findings from recent regulatory battles. Criticism of Apple's approach has not only come from business figures like Cardone, but also from regulators in the United States and Europe. These authorities have found Apple's rules in violation of antitrust standards and, in some regions, forced the company to reduce its fee or permit alternative payment methods. A recent landmark federal court decision concluded that Apple must allow app developers to direct users to alternative payment systems outside of Apple's commission structure. The court criticized Apple's persistent efforts to shield its revenue even after initial legal interventions, highlighting how integral the fee had become to Apple's business model and how resistant the company was to outside scrutiny. The wide-reaching implications of these decisions support Cardone's view that such a sizable fee is unsustainable in a truly competitive environment. From a market dynamics perspective, Cardone's comments tie into ongoing concerns about digital platforms' gatekeeping power, and the negative impacts on both developers and consumers. As the global app economy evolves and as regulators increase pressure, Apple's decades-old commission policy is being dismantled. The shift is likely to encourage more competition, lower costs for developers, and potentially better pricing or innovation for end users — all outcomes Cardone has championed throughout his business career. In essence, Cardone's critique speaks to larger questions of what constitutes fair play in modern digital marketplaces and who ultimately bears the cost of entrenched market power. In that regard, his voice underscores a movement pushing for greater accountability and opportunity across the technology sector. On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Times
30-06-2025
- Entertainment
- Times
Four-year-olds ‘exploited' by tech giants' app store age ratings
Children as young as four are being exploited because of misleading age ratings on Apple and Google's app stores, it has been claimed. The recommended app store ages for some of the most popular apps, such as Candy Crush Saga, Whiteout Survival and Toca Boca World, are much younger than the limits set by developers in the terms and conditions. This leads to young children being left in the 'firing line' of in-app purchases, targeted advertising and data processing, campaigners say. The Good Law Project and 5Rights, a charity protecting children's digital rights, have filed a legal complaint with the Competition and Markets Authority (CMA) over the issue. Candy Crush Saga, which has 275 million monthly users, has an age rating of 4+ on Apple and 3 on Google, but its terms and conditions say players have to be at least 13. For Toca Boca World, which has 60 million monthly users, the ages are 4+ on Apple and 3 on Google but the terms and conditions say under-18s need parental consent. Whiteout Survival, which has 10 million monthly users, is rated 4+ on Apple and 7 on Google but its policies set a minimum age of 13 and under-18s need parental consent. All these games are free to download but generate revenue from in-app purchases, as well as data processing and advertising. Apple and Google can take up to 30 per cent of this revenue. The disparity is created by the app stores rating on content of the games but developers state ages based on data-processing laws. Of the top 500 apps by in-app revenue, 45 per cent display a lower age rating in the app store than terms and conditions and 74 per cent have a lower app-store age than the privacy policy, the complaint says. Duncan McCann, Good Law Project's tech and data policy lead, said: 'These tech giants are refusing to do the right thing and act, simply because it is so lucrative not to do so.' Leanda Barrington-Leach, executive director of 5Rights, said: 'It is unfathomable how Apple and Google can so blatantly mislead consumers.' The CMA is investigating whether Apple and Google have 'strategic market status'. If the regulator finds that they do, it can impose conduct requirements on them. Apple said: 'We are committed to protecting user privacy and security and providing a safe experience for children.' Google said: 'Google Play does not control app ratings — these are the responsibility of the app developers and the International Age Rating Coalition. Ratings in Europe (including the United Kingdom) are maintained by Pan European Game Information.'
