Exploring the powerful smartphone-app duopoly held by Apple and Alphabet, with governments aiming to regulate their dominance. The podcast also delves into the high costs of India's elections and the innovative solutions in combating locust swarms.
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Quick takeaways
Regulators are pressuring for more competition in the Apple-Google duopoly of app stores.
Initiatives to challenge the duopoly, like Microsoft and Epic Games launching their own stores, face historical struggles to gain market share.
Deep dives
Regulation and Competition in App Stores
Governments worldwide are scrutinizing app stores, like those of Apple and Google, due to their lucrative business model. These tech giants take a significant cut from in-app purchases and subscriptions, earning them billions annually. With operating margins far exceeding those of their core businesses, App Stores have attracted attention for potential regulatory intervention aiming to diversify the market and reduce platform dominance.
Challenges and Debates Around App Store Monopolies
Regulators, particularly in the EU, are pushing for more competition in the App Store market dominated by Apple and Google. Legal battles over commission fees and restrictions on app availability highlight the ongoing debate. Developers support regulatory efforts to lower fees and increase market access, but the impact of these changes on market dynamics remains uncertain.
Future of App Stores and Competition
Initiatives, such as Microsoft and Epic Games launching their own app stores, aim to challenge the Apple-Google duopoly. However, historical attempts at alternative stores have struggled to gain significant market share. While regulatory pressure mounts for increased competition, user demand and trust in existing app store security measures may limit the success of new entrants, maintaining the dominance of the established players.
Apple and Alphabet operate what is in effect a smartphone-app duopoly. Governments want to curb their power, but it is not clear whether more competition would change things. We ask why India’s election is so eye-wateringly expensive; the country’s size is not the only answer (08:59). And new approaches in the old fight against swarms of locusts (14:07).