Sitting On The 19.5 Billion "Leeks Field", Google, Which Is Harvesting Face To Face, Features A Hidden Business Crisis Behind It

On September 28, Eastern Time, Google announced that it'll enforce the "30% application store" rule starting next year. By then, all developers who publish Android apps within the Google Play store must use the in-app purchase payment service provided by Google, and other independent payment systems are going to be prohibited.

The timing of Google's option to enforce the rake rules is imaginative. On the one hand, many vendors like Epic and Facebook are violently protesting against Apple's notorious "Apple tax"; on the opposite hand, Google's parent company Alphabet is facing an antitrust lawsuit that brought by the US Department of Justice this will not help but make people wonder, is Google just a blind follower of Apple? Or Google has other plans?

Google Play "Leek Field" Ignored By Google

In fact, Google’s “30% discount on the app store” rule isn't a replacement rule. Google has already introduced this policy as early as 2018. However, unlike Apple, which strictly enforces relevant regulations, Google has always turned a blind eye to the principles of drawing.

Under blatant laissez-faire, major application developers began to try to to their best to avoid Google’s commission. After all, without human supervision, it's very simple to avoid deadly rules. In August 2018, the well-known video streaming company Netflix stated that it had been testing a payment process that bypassed Apple and Google’s in-app subscriptions. This method can drive more users to pay directly on its website.

Before the official announcement, Netflix has already started operations consistent with Netflix's website description, since May 2018, Netflix's Google Play charging channel has no thanks to charge new users or re-join users. Most users will prefer to use credit cards to pay on Netflix's official website. Until now, Google Play still cannot receive Netflix's share.

In addition, many developers, including Spotify and Match, have begun to use similar methods to avoid the commission, like encouraging users to use credit cards, and "rejecting Play app account payments" once became a tacit secret for users.

I worked hard to open up the leeks field on Google Play, planting crops of leeks one after another, but not listening to the wanton growth of leeks. Google's approach is basically strange watching the apple on the opposite side, the strict "master of management" Cook will never allow any leek to be missed.

"Dragon Slayer" Epic Awakened Google

Last month, so as to bypass Apple’s in-app purchase rules, Epic Games, the developer of the favored game "Fortnite", introduced a replacement direct payment stimulus policy. Users who pay on to it'll receive a reduction of up to twenty.

Apple, which has always strictly enforced the rake policy, will naturally not let this happen. The new payment option was removed by Apple after only a couple of hours on the App Store. the whole "Fortress Night" was also removed game.

Letting Apple execute the delisting measures is strictly what Epic wants to ascertain . With the momentum of popular opinion, Epic quickly packaged itself as a "monopoly-breaking rebel" image, and launched an enormous momentum with the subject of "#FreeFortnite" The social media movement also filed a lawsuit against Apple.

In addition to firing on Apple, Epic also brought Google to court, although Epic's move seems unnecessary-because it's also a member of Google Play's "long-term evasion alliance".

According to Sensor Tower data, Epic paid quite $43 million in share to Apple's App Store this year, while the share to Google Play was only a pitiful $3 million. For Epic, there seems to be no got to stop from Google so as to earn attention.

However, Epic’s stick seems to possess had a side effect. Google, who was beaten up, noticed its own leek field and launched a "forced harvest policy." I don’t skills Netflix, Spotify, and Match, who won’t to evade tax with Epic, how do they view Epic now?

Advertising Business Suffered Heavy Losses And Faced Fierce Competition, Google Urgently Needs Business Growth Points

Of course, Epic’s display is merely one among the explanations for Google’s launch of this harvesting policy. The deeper reason is hidden within the financial report previously disclosed by Google.

On July 31st, the "Silicon Valley Big Four" Apple, Amazon, Google and Facebook simultaneously disclosed their last quarter's earnings. Whether it’s Apple’s "exceeding expectations" iPhone business growth, Amazon’s huge revenue bucking the trend, or Facebook’s e-commerce ambitions, the giants have revealed their strong business growth points.

Among the outstanding colleagues, Google, the sole one whose revenue and profits have both declined, is striking consistent with the financial report, Google’s parent company Alphabet’s total revenue within the second quarter was US$38.297 billion, a decrease of twenty-two from US$38.944 billion within the same period last year internet profit was only US$6.959 billion, which was a 30% drop from US$9.947 billion within the same period last year.

Affected by the epidemic, Google's livelihood advertising business has been hit hard, with revenue falling 12% to 25.131 billion U.S. dollars. The search segment, a crucial a part of its advertising business, has revenue of 21 billion U.S. dollars, a year-on-year decrease of 10%.

In addition, cloud services and YouTube, which are regarded by Google because the focus of future development, also face competition from rivals like Facebook, Microsoft, Amazon, and Alibaba.

Take Google Cloud as an example. It started in 2008 only two years later than Amazon, but the latter AWS has now firmly grasped absolutely the position of the worldwide cloud computing market share, accounting for 33.6%, while Google accounted for five .3%. Ranked fourth. because the global cloud computing market has become a red ocean, Google’s future path might not be easy.

In the face of this example , Google urgently must seek new business growth points, and Epic just at this point gave Google a headshot, drawing Google's attention back to the leek field of Google Play. If it weren't for the "Dragon Slaying War" launched by Epic against Apple, Google would probably not skills fat its leek fields are.

According to the analysis report of Sensor Tower, within the third quarter of 2018, the amount of downloads of Google Play programs has reached 19.5 billion, far exceeding the 7.6 billion downloads of the Apple App Store within the same period.

However, thanks to Google’s well-known mismanagement, Google Play’s revenue for the quarter was only 6.2 billion US dollars, while the App Store, which strictly enforces the share policy, created 12 billion US dollars in revenue, almost twice that of Google Play.

For Google, the Google Play business segment, which has more download users, has quite good growth prospects-provided that it begins to strictly limit the evasion of app developers like Apple within the context of both declines in revenue and profit, it's not surprising that Google began to learn from Apple "cutting leeks" so as to hunt business growth.

In the face of monopoly investigations and therefore the loss of developers, is it wise for Google to gather "member money"?

However, Google's actions also carry certain risks, especially within the eyes of the scourge that folks now regard monopoly as an epidemic.

Just the day before the "Silicon Valley Big Four" collectively released their financial reports, the heads of the four companies gathered within the Congress to simply accept antitrust inquiries from lawmakers. Among them, Google’s parent company Alphabet CEO Sundar Pichai (Sundar Pichai) was continuously asked 61 questions by lawmakers, which shows the US government’s concerns about Google’s monopoly.

One month after the hearing, Google received a notice of antitrust litigation from the US Department of Justice. consistent with people conversant in the matter, thanks to concerns that Google’s parent company Alphabet will use certain means to interfere with antitrust investigations, US Attorney General William Barr is decided to initiate antitrust lawsuits beforehand . If nothing happens, the Ministry of Justice will take action within every week or two in early October.

At this juncture, it might be unwise for Google to forcefully collect shares. Previously, Epic used the "Apple tax" to criticize Apple for "fighting against monopoly." Google's launch of "Google tax" may attract The further attention of the U.S. Department of Justice provides the idea for the next antitrust investigation.

In addition, it's questionable whether Google can receive enough money like Apple. The ecology of Android is different from that of Apple. Google doesn't restrict application developers from publishing applications on Google Play. Developers are still liberal to choose other platforms to publish their applications, like Samsung Galaxy App Store and Huawei App Market.

In this ecological background of air leakage, a crucial reason why most developers still choose Google Play is that they will "evade tax" during a fair manner. If Google really starts to strictly collect revenue within the future, nobody knows whether developers will lose to other application distribution platforms under the pressure. Google, which has won the "porcelain job" without Apple's "diamonds", would have an extended thanks to go if it wants to be a professional collector.

Disclaimer: This article "Sitting On The 19.5 Billion "Leeks Field", Google, Which Is Harvesting Face To Face, Features A Hidden Business Crisis Behind It" is according to different reports that we collected may be our reports are not correct.