After an investigation by the Japan Fair Trade Commission (JFTC), Apple agreed to let Netflix, Spotify and some other companies use payment methods outside Apple’s App Store when users sign up for subscriptions. Analysts dub the move a “strategic retreat” from what has been a huge source of revenue for Apple. During Epic Games’ lawsuit against the tech giant, lawyers revealed that 81 percent of the App Store’s 2016 revenue came from games, 3 percent from music and 4 percent from other forms of entertainment. Continue reading Apple Allows Reader Apps to Use Outside Payment Systems

South Korea is on the verge of becoming the first country to initiate legislation that would provide consumers with the choice of which app payment provider to use. The Telecommunications Business Act, which is “almost certain” to pass a vote in the assembly, could end the “effective duopoly” of Apple and Google. It would also enable companies like Epic Games to transact directly with users and avoid hefty commissions charged by those two companies. In the U.S., Apple and Google face legislative actions and an Epic Games lawsuit. Continue reading South Korea to Let Consumers Select App Payment Provider

Facing increased regulatory scrutiny, Apple announced significant changes to its App Store, enabling developers to inform customers about ways to pay outside the App Store and expanding prices they can offer for subscriptions as well as in-app purchases and paid apps. The company settled a class-action lawsuit with software developers and is expecting a judgment in a suit filed by Epic Games over many of the same issues. Apple’s move is the biggest it’s ever made in response to developers alleging anticompetitive behavior. The company separately announced plans to cut its commission rate for publishers on Apple News. Continue reading Apple Makes Changes for App Developers, News Publishers

The U.S. Senate introduced the Open App Markets Act to give consumers more control over their devices; stop app stores from ‘disadvantaging’ developers and allow them to inform consumers about lower prices and offer competitive pricing; improve the ability of startup apps, third-party app stores and payment services to compete; require devices to allow ‘sideloading’ of apps; and continue to protect privacy, security and safety of consumers. If voted into law, the Act could end Apple and Google’s monopoly over the app ecosystem. Continue reading Senate Measure Could Impact Developers, App Store Models

The COVID-19 pandemic has reaped rewards for Big Tech companies that benefitted from the shift to remote working and learning. Apple earned $21.7 billion in profit for the quarter that ended in June, the most successful quarter in the company’s 45-year history, while Alphabet and Microsoft also enjoyed strong quarterly earnings. Apple’s revenue rose 36 percent from the same period a year earlier to $81.4 billion, exceeding Wall Street expectations. Apple is on track to earn $86 billion for the fiscal year, according to FactSet analysts. Continue reading Apple Just Earned Its Biggest Profit in the Company’s History

Alphabet’s Google is being sued by a group of 36 states and the District of Columbia that claim the Big Tech company abuses its market dominance with the Google Play Store. Although it is the fourth such state or federal antitrust lawsuit filed against Google since October, this lawsuit, filed in the U.S. District Court for the Northern District of California, is the first to take aim directly at the tech giant’s app store. The other suits have focused on search and advertising. California, Utah, North Carolina, New York and Tennessee lead this suit. Continue reading Latest Multi-State Antitrust Lawsuit Targets Google Play Store

Microsoft unveiled Windows 11, almost six years after the introduction of Windows 10, the world’s most widely used PC operating system with 1.3+ billion devices. Windows 11 will be offered as a free update around the holiday season. Even as Microsoft has seen major growth in its Azure cloud services, Windows still represents 10+ percent of the company’s revenue. At the Windows 11 event, Microsoft executive Panos Panay stated that, unlike Apple, its Microsoft Store app marketplace lets developers use Microsoft’s payment system for a 12 percent cut or use their own. Continue reading Microsoft Unveils Windows 11 with Upgraded Features, Design

To attract more developers to its Android and Fire OS Appstore, Amazon — following similar moves by tech giants Apple and Google — is cutting costs for developers with its Amazon Appstore Small Business Accelerator Program. Whereas both Apple and Google halved their cut of a developer’s first $1 million to 15 percent from 30 percent, Amazon instead will lower the cut to 20 percent but also give developers 10 percent in “AWS promotional credits” to use its cloud services, bringing their Appstore revenue to “an equivalent of 90 percent.” Continue reading Amazon Targets App Developers with Lower Fee, AWS Credit

“Fortnite” creator Epic Games sued Apple over its 30 percent commission on all App Store transactions. That case is now in court, and Apple chief executive Tim Cook took the stand to defend his company against accusations of monopolistic behavior. On the sidelines are other companies with the same grievance and the European Union, which also charged Apple with violating antitrust rules with the App Store. In an hour of testimony, Cook stated that commissions from app developers help the company create better App Store security. Continue reading Apple Chief Exec Tim Cook Testifies in Trial with Epic Games

The lawsuit between Apple and Epic Games has come to trial and is expected to last about three weeks. Epic sued the Big Tech company over its App Store rule that developers must use its payment system, for which it charges a 30 percent fee. Epic Games has also sued tech giant Google for the same issue on its Play Store. The European Union has similarly charged Apple with violating antitrust laws. At the trial, Epic’s lawyers will argue a legal theory that Apple is using its dominant position to stifle competition. Continue reading Apple, Epic Games Trial to Determine Anticompetition Charge

In the wake of an initial complaint from Spotify, the European Commission has levied antitrust charges against Apple for breaking EU competition rules regarding its App Store policies. More specifically, the EU focused on two rules, one requiring developers to use its in-app purchase system, for which it charges a 30 percent cut, and a second not allowing developers to let users know about other purchasing options. The Commission found that the rules “distort competition” and result in higher prices for consumers. Continue reading European Commission Targets Apple with Antitrust Charges

The rivalry between Apple and Spotify to dominate the growing podcast market has heated up. Apple launched paid podcast subscriptions and Spotify recently partnered with Facebook to spur discovery. In its latest move, Spotify also launched a podcast subscription model but, unlike Apple, which keeps 30 percent of the fees, Spotify will allow content creators to keep 100 percent. Podcasting, which skyrocketed in popularity during the COVID-19 pandemic, is expected to bring in $1+ billion in advertising revenue this year. Continue reading Apple vs. Spotify: Battle for Podcasting Dominance Heats Up

The Apple App Store is full of scams, according to Kosta Eleftheriou, who has hunted down scam apps for iPhones and iPads that lure consumers into a “free trial” and then charge them insanely high monthly subscription rates without an obvious way to cancel. Eleftheriou, who said these scam apps advertise themselves with thousands of fake 5-star reviews, has come to the conclusion that Apple doesn’t care or is incompetent. Apple isn’t the only target for fraudsters, who have a lucrative business scamming digital advertisers. Continue reading Scams Are a Problem for Apple App Store, Digital Advertising

Spotify acquired Clubhouse rival Betty Labs, which produces live sports audio app Locker Room, for an undisclosed amount of money. Although Locker Room will stay live in the App Store, Spotify will rebrand it with a new name and broaden its focus to include music and culture as well as sports. In addition to the iOS version, Spotify will eventually add an Android version. LinkedIn and Facebook are also developing live audio features as the trend continues to gain traction. These apps would compete with existing platforms Clubhouse, Twitter Spaces and Discord. Continue reading Spotify, LinkedIn, Facebook to Compete in Live Audio Space

Apple will finally roll out its app-tracking transparency initiative to protect user privacy. With new software, users will be asked in a pop-up window whether they want a given app to be able to track their activities. Advertisers, ad-tech companies and app developers are preparing ways to weather the change, which could include tweaked payment models and new advertising strategies. Many experts expect users to reject tracking. Facebook plans to debut its own pop-up window telling users the benefits of tracking. Continue reading Advertisers Strategize as Apple Rolls Out Its Privacy Initiative