The Amazon App Store, which is self-defeating, is actually a victim of monopoly?

As an example, the Amazon App Store failed because of Google’s monopoly.

Recently there have been news that the US local time on July 9, according to “USA Today” reported that the US 36 states and the District of Columbia Washington prosecution for Google to initiate class actions, accusing it of monopolistic through Google Play. According to the indictment, Google Play was described as a tool for Google to “use anti-competitive barriers and authorization methods to maintain its monopoly power.”

The Amazon App Store, which is self-defeating, is actually a victim of monopoly?

But in the case of Google being sued for alleged monopoly of Google Play, some views agree with Google spokesperson Wilson White’s statement that Android provides more openness and choices than other systems. After all, in contrast, Apple only allows users to install the App Store on the iOS side, while Google provides users with third-party application stores other than Google Play on the Android side, and also supports “side loading.”

In order to prove that Google’s Google Play has a monopoly in the Android ecosystem, the prosecutors also found a “strange” victim Amazon to support their accusation. In the indictment, Amazon’s name was mentioned more than 20 times, and said, “Amazon is one of the largest and most sophisticated content distributors, and even it failed to create a competition with Google and weaken Google’s application distribution. Monopoly app store.”

The Amazon App Store, which is self-defeating, is actually a victim of monopoly?

This also means that in the eyes of regulators, the failure of the Amazon App Store demonstrates that even a powerful technology giant like Amazon cannot shake Google’s monopoly on Android application distribution channels. In other words, from the perspective of these regulatory agencies, after 10 years of development, the Amazon App Store has almost no reason to exist , except for now cooperating with Microsoft to enter Windows 11. It’s because Google is blocking it.

So is it really because Google is blocking the development of the Amazon App Store? In a sense, it is true. As we all know, Android is composed of two parts. One is the AOSP (Android Open-Source Project) created by the Open Handset Alliance (OHA), which is also the Android open source project. AOSP can provide the most basic user services ( For example, phone calls, text messages, etc.).

The Amazon App Store, which is self-defeating, is actually a victim of monopoly?

The second is Google’s GMS (Google Mobile Services), which is represented by Google service framework, Google play, and Google account management program. The interconnection between these applications forms a system framework that allows third-party applications to call APIs in these applications to provide richer services for the Android system. Although AOSP is open source, GMS belongs to Google and is a fee-based project for terminal manufacturers.

In fact, in the eyes of many users, GMS service is the soul of native Android. Android without Google Play, Gmail, Search, Maps, YouTube, and Gmail is undoubtedly incomplete. Even overseas users have long been accustomed to Android. These services exist in the model.

The Amazon App Store, which is self-defeating, is actually a victim of monopoly?

In short, through the pre-installed GMS service, Google Play has successfully taken root in the mobile phones of overseas Android users. For users, the app store is just a channel for downloading apps, and the tool attributes are very prominent. This causes users to usually meet their needs with only one app store, and Google Play, as an official channel, naturally occupies a certain amount. Advantages, which in turn led to the loss of competitiveness of the Amazon App Store.

In a sense, the U.S. prosecutor’s targeting of Google Play is in fact basically the same logic as the EU’s antitrust agency’s targeting of Google’s search. Both refer directly to the use of the GMS pre-installed model to obtain an unfair competitive advantage. Especially at the end of 2014, Google changed paragraph 4.5 of the Developer Agreement, stipulating that the services provided by the APP in Google Play “must not include the services of the nature of the app store”, which directly led to the castration of the app store module of the official Amazon app. Replaced by Amazan Shopping.

The Amazon App Store, which is self-defeating, is actually a victim of monopoly?

But this is not the whole picture. As part of GMS, being pre-installed on Android phones is indeed the advantage of Google Play, but this is not the main reason for the failure of the Amazon App Store. As the Amazon app store that officially started its full expansion in 2011, it was also the embryonic period after the birth of Android. During this period, there was no difference in size between Google Play and Amazon app store, but in 2014, Google Play’s The number of applications reached 1.43 million, the Apple App Store was 1.21 million, and the Amazon App Store ranked third with 393,000 models.

In many points of view, what made the Amazon App Store lost and developers left one after another were Amazon’s two differentiated strategies-MSRP (recommended retail price) pricing system and “actual free”. Regardless of Apple’s App Store or Google’s Google Play, the price developers want to set for their apps is whatever price they want. The price of 6/98/198/398/648 yuan for in-app purchases is also the result of the developer’s convention.

The Amazon App Store, which is self-defeating, is actually a victim of monopoly?

But the Amazon App Store is different, it uses a procurement model similar to Amazon’s e-commerce platform. When a developer submits an app to Amazon, he can set a suggested retail price, which must be equal to or lower than the price of the app in other app stores, and the corresponding app price that consumers finally see on the client is determined by Amazon Decide on your own on the basis of MSRP, which may be full price, half price , or even free. Developers can choose between two different settlement modes. One is to implement a regular 30% rake according to Amazon’s official pricing, or to take the MSRP price determined by the developer, but the rake will reach a terrible 80%.

On the basis of this flexible pricing system, Amazon has also developed a “Daily Free Application” project. Participants need to make their own APP completely free to achieve free downloads and free in-app purchases. Amazon will The actual purchase, the corresponding income is paid to the participants. At first glance, this is a good project for developers to advertise for Amazon at their own expense. Developers not only earn money, but also promote their apps for free. However, after participating, many developers have expressed that Amazon’s routines are too great. deep.

The Amazon App Store, which is self-defeating, is actually a victim of monopoly?

The developer found that Amazon did not pay the revenue as scheduled, and also gave the reason that the APP participating in the project will be in the most valuable and visible position in the app store, which is beneficial to the developer, but Amazon cannot make a profit from it, so it will not pay developers fees, but will recommend participating applications on the top of the application store homepage in the next 14 days. If you, as a developer, see Amazon’s operations, how would you feel?

It was not until 2017 that Amazon announced the gradual closure of the “Daily Free Application” project and the subsequent “actual free” derived from it. But this is obviously too late, very unfriendly to developers pricing strategy, with erratic operation, allows developers great loss, and the lack of developer process application store system failure that apparently only one way.

The Amazon App Store, which is self-defeating, is actually a victim of monopoly?

It is true that Google uses GMS to bundle Android’s strategy to allow Google Play to take root in a mobile phone, but it does not prohibit users from downloading and using other application stores. The failure of the Amazon App Store is more of its own mistakes in its operational strategy. Google, which pleases developers, and Amazon, which fudges developers, are like the positives and negatives of coins. Therefore, in the eyes of many industry insiders, it may not be appropriate for the US prosecutors to use the failure of the Amazon App Store to demonstrate the Google Play monopoly.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-amazon-app-store-which-is-self-defeating-is-actually-a-victim-of-monopoly/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-07-20 13:50
Next 2021-07-20 13:52

Related articles