Apple reportedly buys Google Ads for high-value apps to get a 30% commission for the App Store

Apple reportedly secretly bought Google ads for high-value subscription apps to fill its pockets, according to the report Forbes. And many app developers aren’t too happy about that.

Google will not delete these ads even if they are purchased without the consent of the application developer. Under Google’s advertising policies, ads may use third-party trademarks if they are “primarily intended to sell (or clearly enable the sale of) products or services, components, replacement parts, or compatible products or services that match the trademark. Which means Apple doesn’t violate any Google ad policies.

But why do developers complain about free advertising, you wonder. Some developers say Apple’s 15% to 30% cut would eat up their margins. Furthermore, the report states that advertising prices rise when multiple parties bid on the same ad slots. This, in turn, makes advertising more expensive for application developers.

However, it should be noted that Forbes was notified by the developers and could not check whether Apple really bought the advertising space. The suspicions of application developers, however, do not stand on the basis of their claims that they did not buy the ads themselves. This and the fact that the ads go to the App Store link instead of the app website.

iPhone App Store

Apple does not reveal that it is behind the placement of ads for applications such as HBO, Masterclass, Bumble, Tinder, Plenty of Fish and Babbel. An unsuspecting Safari user has been redirected to the App Store instead of the developer’s site due to Apple’s covert ads. This gives the company a significant revenue reduction of 30% in the first year and a 15% reduction for each subsequent year when the user subscribes to the App Store. The tech giant’s covert tactics could potentially cost application developers millions of dollars in subscription revenue.

Although Apple’s commission does not affect you as a consumer, but inclusion in the App Store route can negatively affect the user experience. When you buy a subscription service in the App Store, you essentially become an Apple customer. If you run into problems with your subscription, app developers can’t help you because their hands are tied to iPhone’s privacy policy. Apple does not share detailed customer information with companies that run these applications and subscription services.

Apple is no stranger to the controversy of the App Store. Recently, Epic Games sued Apple for the right to offer its own payment options in its iPhone and iPad games. The judge ruled that Apple must allow app developers to connect to external payments in their apps.

Do you think Apple is doing a service to app developers with “free advertising”? Or is a mega corporation just greedy and eating their profits? Let us know in the comments below.

[Via Forbes]

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Naveen Kumar

Friendly communicator. Music maven. Explorer. Pop culture trailblazer. Social media practitioner.

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