Australia antitrust agency examining Apple's App Store policies

Posted:
in General Discussion edited September 2020
Australia has become the latest country to look into Apple's App Store and Google's Play Store policies, after the country's competition regulatory agency revealed it is examining the digital storefronts for antitrust behavior.




The Australian Competition and Consumer Commission has advised it is looking into the "use and sharing of data by apps, the extent of competition between Google and Apple's app stores, and whether more pricing transparency is needed in Australia's mobile apps market" in a statement issued on Tuesday.

The work is being conducted as part of a five-year inquiry, with reports about digital platform services set to be published every six months. An issues paper released by the commission asks for views and feedback from app developers and suppliers in their dealings with the app stores, while consumers have been invited to share their experiences via a survey.

The ACCC wants views on Apple and Google's potential incentive to link or bundle their own goods and services through their app marketplaces and how they affect consumers and businesses. The ability for third-party app developers to compete against apps made by the firms controlling the stores is also being looked at, as are terms and conditions imposed on developers, the effects of fee structures, how apps are allowed or denied access to the app stores, rankings, and the potential collection of consumer data.

We want to know more about the market for mobile apps in Australia, including how transparent and effective the market is, for consumers as well as those operating in the market," said ACCC deputy chair Delia Rickard. "We will also focus on the extent of competition between the major online app stores, and how they compete for app sales with other app providers."

Submissions for the consumer and developer surveys close on October 2, with the final report concerning the opinions expected by March 2021.

Australia has become the latest country to take interest in Apple's App Store for antitrust reasons. Investigations and expressions of interest have been made or commenced by many countries, including Germany, Russia, the United States, and others.

Comments

  • Reply 1 of 8
    This particular investigation doesn't seem to be as brutal as the ones in some other countries, but I'm going to say what I've been saying for weeks, with a little twist this time. Until these investigation around the world are generally complete, Apple should not install the App Store on new iPhones, starting with the iPhone 12. You can still use the App Store on iPhones manufactured before today, but the insinuation would be that all future iPhones may not ever get it. The question we would have is whether consumers will buy the iPhone 12 or continue buying the iPhone 11. If most people buy the 12, that would tell the world not to try to micromanage anyone's App Stores. The world doesn't try to micromanage what's sold inside anyone's retail store, so why anyone's App Store? This would be like Walmart deciding to sell only items that are branded by WalMart itself. Nobody would do anything about that. Nothing at all. And if Walmart could get away with that, so much the better for them.

    PS. As an encouragement to get people to buy the iPhone 12, Apple could include all of its own paid software products for free on that device only. Along with free subscriptions to its Music, TV and News services for as long as there is no App Store available for it. I would jump at that. 
    edited September 2020 watto_cobra
  • Reply 2 of 8
    It's worth noting that the ACCC's involvement does not mean there is a foregone conclusion of finding anti-trust behaviour as it tends to with the regulatory agencies of certain other countries where these agencies are merely thinly veiled fronts to protectionist policies.

    Rather, the ACCC has found many times in Apple's favour, the most notable and recent example being the denial of Australia's own banks from colluding against Apple Pay.
    Beatswatto_cobra
  • Reply 3 of 8
    maestro64maestro64 Posts: 5,043member
    All these countries just piling on in hopes Apple losses in one country and the rest can say us too and extract their fines to pay for their pet projects.
    Beats
  • Reply 4 of 8
    @22july2013 ;
    not sure why Apple should curtail or inhibit their devices when the competing Samsung mobiles do not, not convinced that doing so, however people bought, would tell anyone anything really. Some people buy for the new camera, some just because it’s new etc. Many don’t care about apps at all. 

    It would be better in my opinion to ban all IAP in games and set a minimum app price of $4.99 in iOS14 and beyond. 

    And maybe give people the option to wipe the device of all software with no way back, so people could install a different operating system if anyone else ever built one compatible. If an iPhone is a general computing device like a PC as Sweeney suggests then that should be fine. Epic can write an OS for Apple devices and compete.
    muthuk_vanalingam
  • Reply 5 of 8
    aderutter said:
    @22july2013 ;
    not sure why Apple should curtail or inhibit their devices when the competing Samsung mobiles do not, not convinced that doing so, however people bought, would tell anyone anything really. Some people buy for the new camera, some just because it’s new etc. Many don’t care about apps at all. 

    It would be better in my opinion to ban all IAP in games and set a minimum app price of $4.99 in iOS14 and beyond. 

    And maybe give people the option to wipe the device of all software with no way back, so people could install a different operating system if anyone else ever built one compatible. If an iPhone is a general computing device like a PC as Sweeney suggests then that should be fine. Epic can write an OS for Apple devices and compete.
    Some of your ideas are interesting. But as for your last idea I previously argued that Apple should sell something called a uPhone, which is identical to an iPhone but allows any software you want installed in it. However there will be no App Store on the uPhone. It's basically just a general purpose computer. Let's see how many people prefer a uPhone over an iPhone.
    watto_cobra
  • Reply 6 of 8
    BeatsBeats Posts: 3,073member
    Mind your own damn business. Why should governments tell us how to run our stores?
  • Reply 7 of 8
    Beats said:
    Mind your own damn business. Why should governments tell us how to run our stores?
    At the risk of sounding like I'm arguing with myself, the US government has told Americans how to run their stores. For example, they broke up the movie production companies who used to own theatres, and now all theatres are independent. The movie production companies were told they could not manage their own theatres/stores. Are you in favour of going back to the old system where companies like Paramount owned movie theatres across the country? After all, "why should governments tell us how to run our stores?"

    https://en.wikipedia.org/wiki/United_States_v._Paramount_Pictures,_Inc.  (you may need to add the trailing dot manually)

    The same thing also happened with car manufacturers and dealerships. The US government told the auto industry they could not sell their own cars in their own dealerships! That's why dealerships are now independent from manufacturers. SIDENOTE: Tesla has found a loophole to this in many states by selling most of its cars online only, but they are under pressure in many states to use the dealership model. If Tesla loses in court, they could end up being less profitable. The main reason Tesla doesn't want dealerships is that they think consumers might not understand (!!) the advantages of electric cars when they see a gas combustion engine in the same dealership. Ie, Tesla thinks people are stupid. 

    https://en.wikipedia.org/wiki/Tesla_US_dealership_disputes

    Personally I think the old historical reasons for restricting theatres and dealerships are obsolete now, primarily because the Internet allows more purchaser options. You can even get movies off the Internet, so consumer choice cannot be threatened. So I don't support how the government STILL restricts auto and movie ticket sales after 72 years. However if Epic wants to argue that the government needs to regulate software sales, I'm willing to listen to their arguments. They just better be cogent.
    watto_cobramuthuk_vanalingam
  • Reply 8 of 8
    I mentioned above how the government forced the Movie industry and the Automobile industry to change how they sold their products. While watching a cameraman at a political rally on the web today I just remembered a third situation. In 1954 Kodak had the strongest sales for both making camera film and separate process of photofinishing that film. The manufacturing and processing of film are two different businesses, and Kodak was using its strength in one field to make it difficult for competitors to enter the film manufacturing business. I don't know the precise details. So the US government sued Kodak in 1954, and the two parties settled. The settlement changed how Kodak did business, and one of the conditions, still in force today, prevents Kodak from "tying or otherwise connecting in any manner the sale of its color film to the processing thereof". So government meddling in stores is not unheard of in US history. And this is another law whose time has passed and should be cancelled, although I'm not sure if anyone cares about film processing any more.

    A creative lawyer might draw some parallels between Kodak and Apple here. Kodak's product: film. Kodak's service: film processing. Apple's product: smart phone. Apple's service: software sales. Kodak used one of its two businesses to try to hamper its competitors in t he other 
    field. Is Apple doing something similar? To be honest, I don't know. I recall Apple saying that they would prohibit some apps for the Apple Watch, like apps that tell the time. Perhaps some creative and lawyer and judge might think that's unfair and might force Apple to allow the sales of certain categories of apps that have been hitherto prohibited. I'm not trying to win any case here for Epic, I'm just trying to anticipate what their arguments might be. A good lawyer (or judge) needs to always consider both sides.
    muthuk_vanalingam
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