Apple secretly buys ads from Google, robbing app publishers and boosting App Store profits

According to Forbes, citing app publishers, Apple is secretly buying ads from Google to promote popular iOS apps and increase revenue from user-led microtransactions. The important thing is that Apple advertises without the consent of the developers of the application, and Google does not remove such content.

Apple allegedly raises millions of dollars in user subscriptions to popular apps such as Tinder, Plenty of Fish, Masterclass and Bumple. At the same time, the advertisement does not indicate that it is hosted by Apple, and for ordinary users it looks like content from the brands or publishers themselves. However, after clicking on such a link, users are taken directly to the App Store, and the links in the ads themselves are similar to those used in advertisements placed by publishers.

Apple is trying to maximize the revenue it generates by promoting in-app purchases from the App Store. The company realized it could make more money from developers by encouraging users to buy from the App Store rather than the Internet.

Source Forbes

It may seem like Apple’s additional advertising is a good way to increase developer earnings as well, but the fact is that when they subscribe through an app from the App Store, developers receive 30% less income, since Apple takes a commission on the transactions made. Major advertisers believe that Apple’s policy is harmful to developers and publishers by lowering their revenues. This practice has been reported to have been going on for two years.

IPhone apps that offer a subscription can make payments through the App Store or charge customers on their own websites. In the first case, Apple receives a 30 percent commission for the first year and 15 percent for each subsequent year. However, if companies like Amazon or HBO sell the persistent service on their own websites, they can bypass Apple’s commission and get all the profits.