When it comes to avoiding paying taxes, GAFAMs always find a way to achieve it. This time, Amazon has unearthed a trick to avoid paying Google’s famous 30% tax on in-app purchases. As you may know, developers who sell digital goods or services through apps available on the Play Store must pay a commission to Google.
Since July 2021, this commission has been lowered to 15% of total profits for small developers who reach $1 million in revenue for the 1st time. After this point, they will have to pay the traditional 30% commission, the one that earned Google a historic legal tussle with Epic Games, the fathers of Fortnite.
However, as we learn from our colleagues at the BBC, Amazon has found a way to escape this tax for its Android and iOS Amazon Shopping app. Indeed, the company has changed its policy and removed the ability to purchase digital goods like e-books for example directly in the Amazon Shopping app.
Read also: Amazon – Arcep wants to increase the price of books on the Internet by €3
Buying an ebook from the Amazon Shopping app is over
Now, on the product page of an e-book, you no longer have a button to confirm the order. Instead, you’ll find an invitation to go directly to Amazon.com through your browser to complete your purchase. Incidentally, Amazon has added a link titled “Why can’t I buy from the app?” on the products affected by this new policy.
Here is what it says: “To stay compliant with Play Store policies, you will no longer be able to purchase new content from within the app. You can make a playlist on the app and buy from the Amazon website from your browser”. Note, however, that the Amazon Kindle application does not seem to be affected by these changes yet. Nevertheless, it’s a safe bet that Amazon decides to remove in-app purchases from Amazon Kindle in order to avoid paying the famous commission to Google.
Source: BBC