An Economic Analysis of Revenue Share Policies for Applications on Android and iOS Platforms: A Comparison of Market Structure, Competition, and Developer Welfare

Abstract

This paper provides an economic analysis of revenue share policies for applications on Android and iOS platforms, focusing on market structure, competition, and developer welfare. Given the dominance of these platforms in the mobile app economy, understanding their differences is crucial for both developers and platform owners. iOS’s closed ecosystem offers higher revenue per user but limits developer flexibility, while Android’s open system allows for more distribution options but brings challenges like revenue fragmentation. A comparative analysis reveals that developers face significant hurdles related to commission fees, payment systems, and market access on both platforms. To address these issues, the paper proposes several solutions, including progressive commission models, hybrid distribution strategies, and alternative payment options. The findings underscore the importance of reforming revenue share policies to enhance developer welfare and foster fair competition. The study contributes valuable insights to the ongoing discourse on platform monopolies and offers practical strategies for improving the mobile app ecosystem.