Why Are App Stores Increasingly Being Scrutinized For Their Taxes?

Apple and Google had been through a lot of changes lately regarding their official marketplaces. The App Store and the Play Store, respectively, are always scrutinized for their 30% revenue-share tax. Apple’s online store for mobiles is still far behind Google’s marketplace in total users.

Last year, Apple changed its guidelines regarding the App Store amid a lawsuit from an EU antitrust investigation and Epic Games. The Cupertino-based giant began to treat its small developers differently this year, halving the 30% commission for sales made through the App Store.

A huge economic growth for Apple

Apple CEO Tim Cook declared:

“The App Store has been an engine of economic growth like none other, creating millions of new jobs and a pathway to entrepreneurship accessible to anyone with a great idea.”

He also added:

“Our new program carries that progress forward — helping developers fund their small businesses, take risks on new ideas, expand their teams and continue to make apps that enrich people’s lives.”

It’s an unwritten law that successful businesses are increasingly being scrutinized for their taxes. Given Apple’s success, it would have been impossible otherwise.

Google’s Play Store is also on top

In 2020, Google’s Play Store users from all across the world downloaded 108.5 billion apps, which speaks for itself when it comes to the online store’s success. The Play Store counts over 1 billion users, surpassing Apple’s online store for mobile devices.

Every app store such as Google Play Store and Apple’s App Store make huge amounts of money by charging a fee on in-app purchases and taking a significant cut of revenue on any one time and subscription charge in apps.

Successful businesses are always being scrutinized for their taxes, and Google is surpassing Apple when it comes to app store popularity. Developers are flocking to other gaming platforms Crazy Games and Poki being one of the leading game portals. However, the Cupertino-based giant’s app store earned a staggering amount of $72.3 billion in 2020, while Google’s Play Store is far behind: $38.6 billion.

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