Apps

Netflix and Spotify will be taxed by the Philippine government

As well as other ‘digital service providers’

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Netflix and Spotify as well as other digital services you’re subscribed to might hike their prices following the latest move by the Philippine government.

The House Ways and Means Panel of the Philippine Congress has approved the bill that proposes the imposition of a 12% VAT (Value Added Tax) to companies, local and foreign, that engage in the exchange of goods and services for monetary value on digital platforms.

Netflix and Spotify were prominently mentioned but the bill will impose the 12% VAT on any digital service provider. It defines such as follows: “an entity which provides digital service or goods to a buyer through an online platform for purposes of buying and selling of goods or services or by making transactions for the provision of digital services on behalf of any person.”

This means most of your online subscriptions will likely be affected. Further expanding the definition, the following also fall under the “digital service provider” category:

  • third party that acts as a conduit for goods or services offered by a supplier to a buyer and receives commission therefore
  • platform provider for promotion that uses the internet to deliver marketing messages to attract buyers
  • host of online auctions conducted through the internet, where the seller sells the product or service to the person who bids the highest price
  • supplier of digital services to a buyer in exchange for a regular subscription fee over the usage of the said product or service
  • supplier of electronic and online services that can be delivered through an information technology infrastructure, such as the internet.

We’ve reached out to Netflix and Spotify inquiring how they will respond to this development. We have yet to receive a response as of writing.

Philippine debt climbing

The authors of the bill argue that this will level the playing field between local and foreign companies. The Philippines’ assistant secretary notes that the government could gain a PhP 10 Billion revenue from this measure.

This comes on the heels of another report noting that the Philippines’ debt has breached the PhP 9 Trillion mark. The borrowed funds have been earmarked for COVID-19 response.

However, there still has been no implementation of mass testing and proper contact tracing which have been proven to be effective in containing the spread of the virus. This, despite the Coronavirus cases in the country already breaching the 80,000 mark — well above the number in neighboring countries.

Source: GMA News

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Apps

Going cashless? GCash now accepted in Europe

United Kingdom, France, Germany, and Italy

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June 9, 2023

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Thinking of going cashless on you next trip to Europe? GCash can offer just that, as the mobile wallet app is now accepted in the United Kingdom, France, Germany, and Italy.

The cross-border payment service is part of the e-wallet’s strengthened partnership with Alipay+, offering users a seamless and secure payment experience without the need for money changers and carrying to much actual cash on your pockets.

Among the popular merchants that will be accepting GCash from now on are:

  • Harrods
  • Liberty London
  • Harvey Nichols
  • Printemps
  • Müller
  • dm-drogerie markt
  • itTaxi
  • IVS Group

To pay using GCash at these establishments, travelers will simply have to look for the Alipay+ logo at the checkout.

Open the GCash app, select the QR or PayQR button, scan the merchant’s QR code, or tap “Pay Abroad with Alipay+” to have a generated QR.

Finally, check the amount, and tap Pay to see the receipt.

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Apps

Instagram is building an AI chatbot

Follows TikTok in doing so

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June 7, 2023

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Do you need an AI chatbot to hold a conversation? Instagram seems to think so. As the world rapidly experiments with developments in AI technology, the platform is reportedly working on a chatbot for its users.

According to Alessandro Paluzzi, a reverse engineer who usually digs up future plans for popular apps, Instagram is working on the AI chatbot feature for a future iteration of the app. Much like other chatbots out in the market today, Instagram’s unnamed bot will enable users to interact with it in casually flowing conversation.

The screenshots obtained by the engineer read that it “answers questions, gives advice.” Additionally, it helps users “find the best way to express [themselves] … [through] writing messages.” From a usability standpoint, the feature can help users craft replies to direct messages. They can also bring the bot into human-to-human conversations by mentioning the bot in the conversation.

To add to the quirkiness, Instagram will supposedly add 30 different personalities to the chatbot. Users can pick and choose which one they like the best. The sneak peek does not reveal any personalities included in the feature. (We’re hoping for a snarky one that judges and critiques posts.)

The feature has no timetable as to its release. However, since TikTok already released its own chatbot for testing, it should stand that Instagram’s feature will come out soon.

SEE ALSO: Instagram is creating a Twitter competitor

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Apps

Study: App Store generated $1.1 trillion in 2022

Developers benefitting more

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June 2, 2023

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Apple announced that the App Store ecosystem generated US$ 1.1 trillion in developer billings and sales for the year 2022, as per a study from economists at Analysis Group.

More than 90 percent of these billings and sales were accrued solely to developers, without any commission paid to Apple.

According to economists from Analysis Group, developers generated:

  • US$ 910 million from the sale of physical goods and services
  • US$ 109 billion from in-app advertising
  • US$ 104 million from digital goods and services

The Analysis Group’s study also mentioned that among the key drivers behind the App Store ecosystem’s growth are a rebounding demand for sectors like travel and ride-hailing, as well as advertising spend in social media and retail apps.

Moreover, developer billings and sales increased by 29% between 2021 and 2022, and 27% percent between both 2020 and 2021 and 2020 and 2019.

In particular, small developers found great success in the App Store, growing their revenue by 71% between 2020 and 2022.

The Apple Store’s engine of commerce includes Apple providing developers around the world a global distribution platform which supports:

  • 195 local payment methods
  • 44 currencies
  • 175 storefronts

Strong growth across app categories

According to a new study from the Analysis Group’s economists titled “The Continued Growth and Resilience of Apple’s App Store Ecosystem,” sales from travel and ride-hailing made on iOS apps increased by 84% and 45%, respectively.

iOS app-based food delivery and pickup sales more than doubled too, while groceries more than tripled.

App Store turns 15

The encouraging numbers from the study coincide with the App Store’s 15th anniversary.

Overall, here are some interesting facts about the App Store’s 15-year existence:

  • iOS developers have earned more than US$ 320 billion on the App Store (from 2008 to 2022)
  • iOS users have downloaded app more than 370 billion times (from 2008 to 2022)
  • The App Store has nearly 1.8 million apps to choose from, more than 123 times as many available during 2008

The App Store also remains a safe and trusted marketplace, thanks to its rigorous App Review process and privacy and security protections.

In 2022 alone, the App Store blocked more than US$ 2 billion in fraudulent transactions and rejected 1.7 million app submissions for failing to meet privacy, security, and quality standards. 

Recent innovations like App Tracking Transparency and Privacy Nutrition Labels also empower users on how to operate

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