A guide to the US antitrust case against Apple, Microsoft in talks to buy TikTok – TechCrunchAugust 1, 2020
Welcome back to This Week in Apps, the TechCrunch series* that recaps the latest OS news, the applications they support and the money that flows through it all.
The app industry is as hot as ever, with a record 204 billion downloads and $120 billion in consumer spending in 2019. People are now spending three hours and 40 minutes per day using apps, rivaling TV. Apps aren’t just a way to pass idle hours — they’re a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus.
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This week, we’re focused on rounding up the news from the U.S. antitrust investigation into Apple, as it pertains to apps, the App Store and developers.
Let’s dive in.
Apps and the Antitrust Hearings
Developers’ concern over Apple’s alleged anti-competitive behavior with regard to how it runs the App Store was one of the many topics that came up during this week’s antitrust hearings. Apple CEO Tim Cook defended the company’s App Store commission structure and treatment of developers in his sworn testimony before the House Antitrust Subcommittee.
But the documents the committee had collected indicate that there were times, in fact, when developers had not all been treated equally, nor did they all have the same terms. Though it’s not surprising, or even unusual, to hear that Apple had carved out special deals for larger companies, the company has continued to insist the App Store is an even playing field for all developers, both large and small. That’s not the case, the documents reveal, as larger companies got deals allowing them to pay less in commission or had access to faster app reviews and dedicated personnel for their needs.
In addition, the documents detail how Apple’s control of the App Store allows it to unilaterally make decisions about app pauses and removals. This impacts large companies, like Spotify, as well as small developers, like those detailed in these emails:
Documents from the US antitrust investigation into Apple by TechCrunch on Scribd
Here are key sections that pertain to Apple & the App Store:
- Apple Cut a Special Deal with Amazon, pp. 34-51; 67-69: Though Apple claims an even playing field for developers, its rules didn’t apply to larger companies. As part of an extensive deal with Amazon over its Prime Video app and Apple device sales on Amazon.com, Amazon agreed to remove “tens of thousands” of unauthorized (not necessarily counterfeit) sellers of Apple products, to give Apple control over its experience on the retail site, among other things. Apple let Amazon pay a 15% commission for in-app sign-ups on Prime Video subscriptions, instead of the 30% apps have…