In a recently published article, the creator of Telegram left harsh criticisms of Apple. Pavel Durov accused Tim Cook’s company of “destroying startups” around the world. According to the executive’s arguments, the apple brand prevents iPhone users from installing applications outside the App Store.
In addition, it condemns that for any transaction through an iOS app, a 30% fee must be paid to Apple.
Pavel Durov accuses Apple of destroying startups and profiting from third-party app
The creator of Telegram published a article this Thursday, July 9th, entitled “How Apple destroys startups around the world - and how it can be stopped“. And it is only by this title that the content promises.
Pavel Durov thus leaves several criticisms to Apple in which the reason is that iPhone users are unable to install applications that are not part of the App Store.
Another criticism is motivated by the 30% fee paid to the apple company whenever any transaction is carried out through an iOS application.
Durov also says that Apple “abuses its position on the market”And doesn’t take financial risks with application development, but profits from successful apps.
According to the creator of Telegram:
Application developers spend significant resources to create, maintain and promote their projects. They are in fierce competition with each other and take huge risks. Apple does not invest anything in the creation of third party apps on its platform and therefore does not risk anything, but is guaranteed to profit 30% of its revenue.
In short, Durov criticizes the fact that, with this system, who really creates and develops the applications has difficulties in paying for the very existence of the application.
App developers are left with only two thirds of the amount earned to pay salaries, income, marketing, licensing, state taxes, etc. This is often not enough to cover all costs, and price increases for users are not possible due to lower demand.
But on Android, things are not very different either…
The Telegram developer recognizes that, unlike Apple, Google allows users to install apps from other stores. However, it points out that on Android programmers also have to pay a 30% fee on all transactions made through the apps of this operating system.
Due to this situation, the creators of the Fortnite game maintained their own distribution for some time, but later ended up including the app in the Google store. Durov comments that:
As a result, these companies have accumulated tens of billions of dollars in their accounts abroad, while hundreds of thousands of local development teams around the world are trying to survive economically.
Durov also gives the example of Microsoft, saying that not even at the height of the Redmond company did something like this happen.
App developers were able to freely distribute Windows software without paying a percentage of their earnings to Microsoft.
The success of iOS and Android is largely due to the work of programmers
In the same article, the executive states that the success of the iOS and Android operating systems is largely due to the work of millions of programmers who created apps.
Attempts by Microsoft and other companies to make their smartphone operating systems popular have failed because third-party developers have already created many applications for iPhone and Android that attracted consumers and made them choose those same smartphones.
In other words, Apple takes double advantage of app developers - as free labor to create a competitive advantage for their smartphones; and as a source of super profits by receiving 30% of the sale of its services.
What can be done to prevent these abusive profits?
For Durov, the solution to this problem requires greater regulation of this sector by the authorities.
The developer applauds the European Commission's investigations into possible market abuse by Apple. Durov says that the ideal would be to force the brand to pre-install on its equipment “alternative app stores that would allow local developers not to give 30% of their earnings“.
The Telegram creator also states that:
For many startups, this change would have a more positive effect than any tax exemption.
If you are a mobile application developer, you certainly identify with some of the criticisms left by Pavel Durov. So far there have been no reactions from either Apple or Google.