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Tinder publisher swipes left on Apple’s claim that app store competition is booming

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Apple’s decision to open the iPhone to third-party development in 2008 created a “new and unique” mobile technology environment that “exploded” software development and consumed with third-party app developers. I think it has brought “great profits” to people. ..

The claim was made in the submission [PDF] To the Australian Competition and Consumer Commission (ACCC) in response to a survey of the app market. The local division of the iPhone maker claimed that the Apple App Store created competition and launched the entire industry with a focus on mobile app design and development. The Apple App Store has also lowered the barriers to entry for developers.

The ACCC survey examines the experience of consumers, developers, and suppliers. It also focuses on the use and sharing of data by apps, the degree of competition between Google and Apple stores, and whether price transparency needs to be increased in the local mobile app market.

Apple says it is competing with Samsung, Google, Huawei, TCL, Oppo and others, arguing that it needs to “competitively compete”.But as highlighted by the match group in its submission [PDF]Other than Apple and Google, there are no significant suppliers of mobile app marketplaces in Australia or globally.

See: US Antitrust Investigations Discover “Warning Patterns” of Practices That Hinder Innovation

Currently, app developers cannot publish and distribute apps on Apple mobile devices without using the Apple App Store.

“When you distribute an app to consumers through an app distribution channel outside the App Store, Apple is likely to claim that the app developer has violated the developer contract with Apple,” Match Group said.

“This will prevent developers from accessing the developer accounts and development tools of Apple’s mobile device operating system, iOS.”

Match Group is responsible for dating apps such as Match, Tinder, Hinge, OKCupid and Plenty of Fish.

“Apple mobile device users can” sideload “the App Marketplace to their devices. However, this method is not allowed on Apple mobile devices and requires advanced hacking skills. “

ACCC investigates on the same day Fortnite publisher Epic Games announced that it will begin legal proceedings against Apple’s local division in Australia to continue the fight against iPhone makers over app store practices. The submission to is published.

The allegation, filed in the Federal Court of Australia, alleges that Apple’s actions on the Apple App Store are an abuse of market power, significantly reducing competition in the app distribution and payment process.

Epic filed a proceeding against Apple in the United States in August, accusing Apple and Google of being anti-competitive and monopolistic. Accusations arose after Epic implemented its own in-app purchase system, evading app store charges, and after both tech giants removed Fortnite from their respective app marketplaces.

Apple receives a 30% commission on purchases made through the App Store. Purchase a paid app. In-app purchase of digital content. Or a digital subscription purchased for use in the app. After the first year of digital subscriptions, Apple will receive a 15% commission from those subscriptions.

According to Apple’s submission, to defend the 30% savings received from developers through the App Store, developers will sell more than $ 413 billion worldwide from physical goods and services in 2019, from ads through iOS apps. Generated $ 45 billion.

However, Apple announced a new scheme on Wednesday. This scheme, called the “App Store Small Business Program,” splits the commission rate in half from 30% to 15%.

“Existing developers who earned up to $ 1 million in all apps in 2020, and developers who are new to the App Store, are eligible to reduce programs and fees,” Apple said. I will. “If the participating developers cross the $ 1 million threshold, the standard fee rate will apply for the rest of the year.”

Apple said it is not aiming to monetize customer data when it comes to using the data.

“This isn’t Apple’s business model, it’s never been.” “Apple is particularly focused on selling products to consumers.”

However, Match Group has revealed that the App Marketplace collects app usage statistics such as how many times each app on the device was opened, how long it was open, and how long it was opened. This is in addition to collecting valuable transactional and billing data where developers use App Marketplace’s unique in-app purchase feature.

“This data includes customer lists, individual user purchasing activities (which can be used for any purpose, including the tendency to buy subscriptions), and successful subscriptions,” he said. “Some developers need to use these in-app purchase features.”

See: Apple’s Antitrust Battle May Spell The End of iOS As We Know

Match Group provided further insights from the developer world and described the Apple app review process.

“Developers respect that the app review process is in place to enable a level of quality control that benefits the end user, but in some cases the app developer may have certain conditions. It’s unclear if it does, but not for other apps that offer similar services. ” “This mess affects developers who can’t push app updates. Features approved by the App Marketplace in one review process may be considered non-compliant in the next review.”

As an example, Apple refused to update the app to DownDog’s yoga app because the app didn’t automatically charge customers after the free trial expired. Apple eventually retreated and approved the update.

After banning streaming games, Apple tweaked App Store rules in September to allow services such as Sony PlayStation, Google Stadia, and Nvidia GeForce Now. However, Apple requires these services not only to review game streaming service apps, but also to submit apps on a game-by-game basis. Microsoft opposed the rule.

Microsoft has publicly criticized Apple’s rule changes. For example, Microsoft needs to list cloud streaming games individually on Apple’s App Store and limit Microsoft’s app marketplace to directories that link users to the games listed on Apple’s App Store.

“Therefore, this change may not allow developers to compete with Apple’s App Store to run the game app marketplace,” Match Group said.

“These restrictions hinder core innovations that make cloud gaming streaming attractive to customers. They ban the provision of game catalogs that allow gamers to access and stream multiple games.” Microsoft added in its own submission. [PDF] To ACCC.

“Apple App Store policies have no practical or technical implications and unnecessarily create cluttered home screens, time-consuming extra steps, and engineering issues. These policies are unattractive to gamers. Excludes game streaming services from the App Store by making it non-functional for providers as well.

Microsoft said certain app stores, such as Apple’s App Store, have become important gateways to the world’s most popular digital platforms. As such, we believe that such app stores must operate fairly in a way that facilitates competition, innovation and choice.

Google used that submission [PDF] The launch of Android as the “first truly open and comprehensive mobile platform” has confused and opened the “stagnation mobile industry” by lowering barriers to entry and creating choices at all platform levels. Tell the ACCC.

“Android’s openness allows anyone to use Android source code freely and independently to create differentiated products. Device makers can decide how many apps to pre-install on their devices. Developers have the freedom to distribute their apps via one or more channels (pre-installed, various Android app stores, and downloads from the Internet), and users are the first apps by the device manufacturer. You can fully customize your device regardless of its pre-installation. ”

Google said the diversification provided by Androidled has led to a surge in competition and innovation in the areas of app development and distribution for the benefit of users.

Android has a choice at every level, including apps and app stores.

Huawei also decided to throw that idea to the ACCC in the form of a slideshow [PDF].. It states that it will drive developer growth and development through effective promotion and monetization.

“Huawei Developers helps global developers promote and monetize their apps through co-operation, Huawei Ads, pre-installed, and a variety of other services,” he wrote.

ACCC details

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