mss6989

For the consumer, discoverability isn't a problem. The download numbers are through the roof, and continue to grow year over year.

For the publisher/developer, discoverability is a challenge. There are certainly steps that you can take to improve your app store presence (keywords in titles, on point descriptions, etc.). So much of the app marketplace depends on word-of-mouth marketing. Build a good app, and people will find you...regardless of how app store search works.

This is a great example of Google doing what Google does best. With one slot gone, app publishers will need to focus on an ASO much more. SEO remains one of the most effective ways of marketing on web, and so too will ASO be in the app marketplace.

To be more specific, Apple and Google are assuming VAT liability for paid apps.

If an app is a paid app in the stores, there’s relatively little decision making to be done; a developer can adjust prices based on the VAT in each country in order to maintain current revenues. The transaction between a developer and an app platform is considered a business-to-business transaction and is subject to the existing VAT rules.

If an app offers in-app purchases, a developer must consider whether allowing a platform to handle the micro-transactions (thus sacrificing the 30% revenue share) outweighs the time and costs necessary to collect and store sales information (including location) and VAT payments. This can be quite a large undertaking for an indie developer or small development studio.

See: http://www.appdevelopersalliance.org/news/eu-value-added-tax...

Webinar: https://pollen.vc/#/vat-seminar/

In some cases, Apple is even taking on the burden imposed by tax laws. In the recent changes to EU VAT, both Apple and Google took on the added cost burden.

App store discoverability is a problem, but it hasn't slowed downloads at all. Most app discovery happens outside the app store.

Putting money behind discovery at the outset is key. If you had that 30% back, you could invest it into ads, promoted posts, etc.

The frequency of enforcement will determine whether or not this is a real issue for developers trying to make a living. Many "indie" developers operate below the VAT threshold as-is.