Apple & Google Face Mounting Threats to $500 Billion Market
The $500 billion app store market, which has been a cash cow for Apple and Google for years, is facing a growing number of threats. A recent court ruling against Google and new regulations in Europe and Asia could force the two tech giants to open up their app stores to more competition. This could lead to lower prices for consumers and more choices for developers.
The Challenges Apple Faces:
Epic Games Lawsuit: A jury recently found that Google had violated antitrust laws by maintaining an illegal monopoly in the app store market. This could lead to changes in the way Google operates its app store, which could benefit Apple's App Store in the short term. However, it is also possible that the court could order Google to make changes that would benefit both app stores equally.
European Union Law: Apple is facing a new law in Europe that will require it to allow third-party app stores and alternative in-app payment systems. This could lead to lower prices for consumers and more choices for developers. However, it is also possible that Apple will find ways to comply with the law without significantly impacting its app store revenue.
Chinese Government Crackdown: The Chinese government is cracking down on which apps are permitted on the China version of Apple's App Store. This could chip away at Apple's services business in China, which is the company's third largest geographic market.
The Challenges Google Faces:
Epic Games Lawsuit: The Epic Games lawsuit could also have a significant impact on Google's app store business. If the court orders Google to make changes to its app store, it could lead to lower prices for consumers and more choices for developers. This could hurt Google's app store revenue in the long run.
Justice Department Investigation: The Justice Department is investigating Google's deal with Apple, in which Google pays Apple billions of dollars to be the default search engine on iPhones and iPads. If the Justice Department finds that this deal is anti-competitive, it could force Google to change its business practices. This could hurt Google's search engine revenue.
The Future of the App Store Market:
It is too early to say what the long-term impact of these challenges will be on Apple and Google's app store businesses. However, it is clear that the app store market is changing rapidly. Apple and Google will need to adapt to these changes if they want to maintain their dominance in this market.
The app store market is expected to reach $612 billion by 2025.
Apple and Google currently control about 95% of the app store market.
The Epic Games lawsuit is just one of many antitrust lawsuits that have been filed against Apple and Google in recent years.