Economist Podcasts Stores of value: regulators lean on app vendors
May 27, 2024
Join Guy Scriven, US technology editor at The Economist, and Sakeep Rahim, a science and technology writer, as they dive into pressing issues in tech and agriculture. Scriven reveals the power dynamics behind Apple and Alphabet's app duopoly, while discussing rising regulatory scrutiny and the quest for competition. Rahim shares innovative, low-tech strategies to combat desert locust invasions, emphasizing proactive measures and the role of diplomacy. Plus, discover the alarming rise of election campaign costs in India and its implications for electoral integrity.
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App Store Revenue
- Apple and Alphabet's app stores generate significant revenue, around $40 billion annually, through in-app purchases and subscriptions.
- Despite being a smaller portion of their total revenue, app stores boast substantial profit margins, attracting government scrutiny.
Government Control
- Governments aim to control which apps are available, often requesting removal of undesirable content like pornography.
- This control extends to geopolitical concerns, such as data security and misinformation, exemplified by TikTok.
Duopoly Challenge
- Governments and developers seek to break Apple and Google's app store duopoly to increase competition.
- The EU's Digital Markets Act forces these companies to allow multiple app stores, potentially lowering commission fees.