FTC wary of Apple and Google "squeezing developers"

The Federal Trade Commission has warned against the power of Apple and Google hold over mobile developers, suggesting this is partly responsible for the rise of harmful monetisation practices.

In a statement regarding the recent order for mobile ad platform Tapjoy to better police fraudulent campaigns, FTC commissioner Rohit Chopra commented on the market in general, noting that Tapjoy was "not the only platform squeezing developers" and dubbing it a "minnow" next to Apple and Google.

"By controlling the dominant app stores, these firms enjoy vast power to impose taxes and regulations on the mobile gaming industry," he wrote.

"We should all be concerned that gatekeepers can harm developers and squelch innovation."

Chopra said the clearest example is the "rent extraction" seen in Apple and Google's 30% commission fee on all sales and in-game purchases, as well as their power to ban developers for "trying to avoid this tax through offering alternative payment systems."

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