App store revenue cuts in Russia might be capped at 20%

While the issue is still being debated in the United States, inside and outside the courts, Russia is already beginning to take steps to curb what has been an unwritten business practice when it comes to distributing digital content, especially in applications and games. . A lawmaker has proposed reducing the amount that app store owners can withdraw from the usual 30% to 20%, but adds one more requirement that Apple and Google may not be so willing to meet.

It has become common practice and business tradition for profits to be split 70/30 between the content owner and the distribution platform. This has been the practice on Steam and is currently a long-standing practice on the Apple App Store and Google Play Store. This practice has been contested time and again by the developers, but Epic Games has finally brought it to the courts in a very well-known way.

Now, a Russian lawmaker has proposed taking action on these complaints. While not completely abolishing this revenue cut system, which, of course, would be painful for app store owners, the law proposes a 20% cap on the commission that Apple, Google and other app stores would receive from direct sales. , as well as fragmented in-app purchases.

The proposed law has an additional stipulation that these application vendors charge one third of their commissions each quarter for a special training fund for IT specialists. While Google and Apple are happy to make one-off or even regular donations for these efforts to improve the local IT experience, they may not be too happy to be forced to set aside money for it.

The law can be especially problematic for Apple, as its app stores are the only sanctioned sources or, in the case of iOS, available for apps on its devices. The company is already experiencing legal headaches in Russia after it was found guilty of anti-competitive practices by blocking third-party parental control applications in favor of its own Screen Time feature.

News Reporter

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