In recent years, the app industry has witnessed many disputes between app developers and Apple over the company’s 30% commission policy for in-app purchases and subscriptions. One of the latest companies to make headlines in this ongoing battle is HoYoverse, the Chinese video game developer renowned for titles such as Genshin Impact and Honkai Impact 3rd, where it has been reported that HoYoverse has attempted to avoid Apple’s 30% commission policy, not once, but twice to achieve revenue growth.
The controversy surrounding Apple’s 30% commission policy: The Apple Tax
Apple’s 30% commission policy, often referred to as the Apple Tax, has been a contentious issue for many app developers and companies. This policy requires developers to pay a 30% fee on all in-app purchases and subscriptions made through the Apple App Store. While Apple justifies this fee by arguing it supports the infrastructure and security of the App Store, many developers believe it to be excessively high and unfair.
HoYoverseis is believed to have established a direct payment system within its apps in order to avoid Apple’s commission expense. Users would be able to make purchases without going through Apple’s in-app purchase mechanism, avoiding the 30% tax. This is bizarre to be honest, given how ties between the giants strengthened this March with Apple CEO Tim Cook‘s visit.
Companies like Epic Games, the makers of Fortnite, have utilized similar strategies, resulting in their apps being removed from the App Store. Implementing direct payments or initiating legal action against Apple may result in clashes and disputes between HoYoverse and the tech giant. These conflicts may result in app removals from the App Store, like how Fortnite was removed, reducing HoYoverse’s reach and revenue.
The tactics HoYoverse employs can have an impact on the user experience within their apps. Direct payments, for example, might provide consumers with greater freedom and perhaps lower pricing, but they also pose security problems. As the situation evolves, app developers, platform owners, and regulators must collaborate to find a balance between the interests of all players in the app ecosystem.
What are your thoughts on HoYoverse Attempting to Avoid Apple’s 30% Commission Policy? Let us know your opinions in the comments below!
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