Epic trial forces App Store changes, Android 12 launch nears, Twitter tries communities – TechCrunchSeptember 11, 2021
Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy.
The app industry continues to grow, with a record 218 billion downloads and $143 billion in global consumer spend in 2020. Consumers last year also spent 3.5 trillion minutes using apps on Android devices alone. And in the U.S., app usage surged ahead of the time spent watching live TV. Currently, the average American watches 3.7 hours of live TV per day, but now spends four hours per day on their mobile devices.
Apps aren’t just a way to pass idle hours — they’re also a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus. In 2020, investors poured $73 billion in capital into mobile companies — a figure that’s up 27% year-over-year.
This Week in Apps offers a way to keep up with this fast-moving industry in one place with the latest from the world of apps, including news, updates, startup fundings, mergers and acquisitions, and suggestions about new apps and games to try, too.
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At the start of the day on Friday, it seemed like the week’s big App Store news would be Epic Games’ attempt to get back into the App Store in South Korea, following the passage of a law that forced Apple and Google to permit apps to use third-party payment systems. But Friday turned out to have much bigger news in store.
That morning, U.S. District Judge Yvonne Gonzalez Rogers issued a ruling in California’s Epic Games v. Apple antitrust case, where the Fortnite maker had alleged Apple was abusing its market power by forcing developers to use its own in-app payment systems. The judge’s decision favored Apple on the larger matter of whether or not it was acting in a monopolistic fashion. The judge said both parties had defined Apple’s relevant market incorrectly — it wasn’t just the App Store or gaming, but specifically, the $100 billion market for digital mobile gaming transactions. And while Apple had a lot of financial success here, with a 55%+ market share and high profit margins, that success was “not illegal” under either federal or state antitrust law.
This decision also means Epic Games was in breach of its contract when it implemented its own payments system in its Fortnite iOS app (it now owes Apple $12 million for that), and Apple won’t be forced to host third-party app stores or allow apps to be sideloaded on its mobile devices. For Apple, this is a huge win.
However, the judge did find that Apple was engaging in anticompetitive behavior under California’s competition laws with regard to its anti-steering provisions, which Rogers said “illegally stifle consumer choice.” As a result, Apple may no longer prohibit developers…