Apple versus developers. Why are there so many conflicts around apps in the App Store?

App developers accusations

One of the main complaints against Apple for a long time —

high commissions in the App Store.The company charges a 30% commission on each sale. 

In response to the accusations Apple stated that the collectionThe 30% of each App Store sale is broadly in line with the fees that other digital stores charge. This was reported in a study by Analysis Group, which was commissioned by Apple. 

The Analysis Group study states thatThe App Store's terms of operation are generally similar to those of Google Play or Amazon Appstore, for example. CNBC emphasizes that the study commissioned by Apple has four main findings:

  • most app stores charge the same 30% for digital goods;
  • retailers, booking services and other trading platforms may charge more than 30% for their services;
  • distributing software through an app store is cheaper than selling through traditional stores;
  • other app stores and digital shoppingThe sites also require buyers to use the built-in payment mechanism and prevent sellers from redirecting them to other locations to complete the payment.

The creator also spoke about the commissionTelegram messenger Pavel Durov. He published a post dedicated to the problem of high commissions for developers in Apple's App Store. According to Durov, there are seven reasons why a 30% commission should concern every iPhone user.

Durov noted that due to the large commission, developers are forced to increase the cost of their applications.

Although when purchasing an Apple phonehas already charged you several hundred dollars more than its cost, you pay it additional tax for each application. In other words, you continue to pay after you've paid. 

Pavel Durov, creator of Telegram

The second and third reasons for concern Durovcalled censorship by Apple and a decrease in user privacy. Thus, according to the founder of Telegram, Apple prohibits developers from telling users that certain content was hidden for iPhone users precisely at Apple’s request.

As for the privacy issue,Durov recalled that to install the application on an iPhone, the user must first create an account with Apple and log in to it. After this, each application and each notification received will be linked to an account, which will allow the company to monitor the user. Durov also believes that high commissions reduce the number of applications on the market.

Following this post, Durov also publishedtext that explained how Apple managed to confuse the public for so long to maintain the status quo. The founder of Telegram called the company's statements that the commission for developers allows them to maintain the App Store and create better smartphones as myths. 

Antitrust proceedings

It was attended by representatives of severallarge corporations: directors of Apple, Google, Amazon and Facebook. They appeared before Congress at their first hearing, which took place on Wednesday, July 29. The directors were testifying as part of an antitrust investigation into the dominance of digital platforms that has been ongoing since June last year. 

Apple does not have a dominant share in any of themarkets in which it operates. However, congressmen were confused by the fact that the App Store decides which applications will be available to users. They also noted that the company can change the rules of the platform at its own discretion, without coordination with the developers, and in addition, it collects user data through its own payment system, which third-party developers are required to use in their applications.

Congressmen showed the vice president's letterApple Eddie Cue, in which he considered raising the commission for applications in the App Store from 30 to 40% in the first year. Cook said the company would never do that.

Apple was also accused of the fact that the companyappointed two employees to help Chinese Baidu deal with the bureaucracy in the App Store and the fact that some companies Apple allows applications to bypass its own rules. Tim Cook replied that he did not know about the help of the Chinese company and that everyone in the App Store works on equal terms.

Conflict with Fortnight

In the past few months, between Apple andThe confrontation between independent developers of mobile applications for iOS is growing. The subject of the dispute is the commission on all purchases that iPhone and iPad users make in mobile applications. According to Apple's rules, it must transfer 30% of each such payment, but mobile application developers consider the commission amount to be too high.

Apple has already been openly criticized by the American company Basecamp and Telegram founder Pavel Durov, who called this amount of royalties “insane.” 

A few days ago, Epic Gamesreleased an update to Fortnite for iOS phones and tablets. In it, as before, players have the opportunity to purchase various elements (for example, clothes or dance moves) with virtual currency, which, in turn, users must purchase with real money.

However, this time Epic Games has activated the functionon the purchase of in-game currency after the application has passed Apple verification and appeared in the App Store. Most importantly, the company has given players the ability to make in-app purchases both through the App Store and directly through Epic Games. Moreover, when choosing the second option, the user is provided with a tangible discount. The company did this in order not to give Apple some of the profits from user payments.

This update has become available to usersmobile versions of Fortnite on August 12th and allowed gamers to choose whether to shop through Apple or the studio. In the second case, the game currency was 20% cheaper. Android owners got the same option.

Apple responded quickly: Fortnite was removed from the App Store on August 13, TechCrunch says. They made a statement in which they explained the ban by the fact that Epic Games released an update inconsistent with them and did so with the intention of violating the App Store rules regarding in-app payments. However, the developers had a ready answer in the form of a lawsuit against "Yabloko", in which the studio accused the corporation of abusing its position in the market, imposing "unjustified" restrictions.

Epic Games' next steps show that thesethe actions were a deliberate provocation against Apple and Google. As soon as the apps were removed, the developer company announced the filing of lawsuits against both companies. Additionally, Fortnite has launched a massive ad campaign that parodies the theme of Apple's famous 1984 commercial. This ad, launched by Apple in 1984, played on George Orwell's dystopia of the same name. In it, the Macintosh computer appeared as the one who would free people from the power and monopoly of the "big brother", which, presumably, meant the IBM corporation. At Epic Games, the ad has been creatively reinterpreted to make Apple itself the big brother.

On August 14, the developer of the game Fortnite filed claims againstApple and Google, accusing them of violating antitrust laws. Epic's lawsuit against Apple says the company will seek to "end the unfair and anti-competitive actions Apple takes to unlawfully maintain its monopoly." 

Some supported the company, while others, on the contrary, said that Epic wants to build a monopoly.

FAS lawsuit over Apple's policy towards parental control applications in AppStor

The Federal Antimonopoly Service (FAS) has opened an investigation against Apple in connection with its actions in the distribution market for iOS applications, the agency said.

The case was initiated on grounds of violation of the law onprotection of competition. The reason was the statement of "Kaspersky Lab". The company complained that Apple unjustifiably rejected the version of the parental control program Kaspersky Safe Kids (KSK), due to which "the next version of KSK has lost a significant part of its functionality."

At the same time, according to the statement, Apple introduced its own Screen Time application on iOS 12, the capabilities of which coincide with parental control applications.

The FAS also cited media data, according to which similar applications of another 11 developers around the world were rejected or their functionality was limited by Apple after the launch of Screen Time.

The department concluded that the actions of the corporation "contain signs of abuse of dominant position" in the market for iOS applications. The FAS has scheduled the hearing of the case for September 13

What's the bottom line?

Apple executives have not spoken out on the lattertime regarding its policies in general, despite the growing number of conflicts and litigation regarding its products. Apparently, the directors are not going to make concessions to the developers, because the conflicts have not shaken the company’s position in the market. This is confirmed by the information that appeared this week on Wednesday - Apple's market capitalization exceeded the $2 trillion mark. The Wall Street Journal reports this.

According to her, the share price has shown growth1.2% and reached $ 467.84. The newspaper notes that the growth in the value of the company's assets is due to stable demand for its devices, as well as the fact that many Americans now work from home, which means that they are more likely to use Apple products and services.

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