The coming legal shitstorm over In-App Purchasing.
Apple at the moment is banning companies from using their own subscription or purchasing model. Some companies have gotten a bye - like Kindle ( where the purchasing can happen on the website and redirect back to the app) and Hulu andNetFlix where an external existing website based subscription model can be used. However I happen to know of a fairly famous UK movie on demand company has had an app blocked because it violates clause 11.2, and Apple have indicated that they will give the companies ignoring the model on the app store a bye for now. Until June. Then they too become illegal.
Worth quoting 11.2
11.2 Apps utilizing a system other than the In App Purchase API (IAP) to purchase content, functionality, or services in an app will be rejected
This was probably designed to stop people buying upgrades to a game online and not within the app. However it is now being used to stop video on demand companies buying videos, iTunes' competitor apps buying TV, movies, or music. I know of cases.
And clearly the companies I am thinking of remain blocked. If they have their own buying model ( across other devices, or the internet) they cant ever be unblocked because, as long as a website exists where users can purchase items, or there is an app on other devices and buying a product works across all devices, the company is in violation of 11.2.
This is clearly in violation of all known anti-trust legislation.
1) Apple is a direct competitor to these companies.
2) It is putting restrictions on the companies which cant be met. They would have to close down their websites, or apps on other devices. The only other alternative would be to make people buy the Beatles on their internet site, or another device, but use In-App purchasing for the same thing on the iPad. The company's music app doesn't have the Beatles unless you buy again on the iPad. Everything else is a violation of 11.2. This is clearly untenable.
3) Specifically with the iPad, Apple is a monopoly provider of Tablet OSes, as it now stands. It will probably be so at the end of the year (i.e. 70% plus).
4) This would be like MS demanding a share of iTunes revenue, forcing an iTunes purchase through it's own purchasing technology , or else banning iTunes on Windows.
Not all curation is bad, or illegal. This, though, is clearly anti-competitive and needs to go and soon. Otherwise Apple will lose anti-trust legislation and lose developers to Android.
Worth quoting 11.2
11.2 Apps utilizing a system other than the In App Purchase API (IAP) to purchase content, functionality, or services in an app will be rejected
This was probably designed to stop people buying upgrades to a game online and not within the app. However it is now being used to stop video on demand companies buying videos, iTunes' competitor apps buying TV, movies, or music. I know of cases.
And clearly the companies I am thinking of remain blocked. If they have their own buying model ( across other devices, or the internet) they cant ever be unblocked because, as long as a website exists where users can purchase items, or there is an app on other devices and buying a product works across all devices, the company is in violation of 11.2.
This is clearly in violation of all known anti-trust legislation.
1) Apple is a direct competitor to these companies.
2) It is putting restrictions on the companies which cant be met. They would have to close down their websites, or apps on other devices. The only other alternative would be to make people buy the Beatles on their internet site, or another device, but use In-App purchasing for the same thing on the iPad. The company's music app doesn't have the Beatles unless you buy again on the iPad. Everything else is a violation of 11.2. This is clearly untenable.
3) Specifically with the iPad, Apple is a monopoly provider of Tablet OSes, as it now stands. It will probably be so at the end of the year (i.e. 70% plus).
4) This would be like MS demanding a share of iTunes revenue, forcing an iTunes purchase through it's own purchasing technology , or else banning iTunes on Windows.
Not all curation is bad, or illegal. This, though, is clearly anti-competitive and needs to go and soon. Otherwise Apple will lose anti-trust legislation and lose developers to Android.
Comments
These competing-with-Apple companies have other web-based means to sell their products outside of an iOS app, and that product can still run on the same iOS based hardware, although not in an app. Kind of a situation that doesn't lend itself to lockout claims. Lockout arguments can't be applied when there are other perfectly reasonable ways to do the same thing which are not restricted.
Not all curation is bad, or illegal. This, though, is clearly anti-competitive and needs to go and soon. Otherwise Apple will lose anti-trust legislation and lose developers to Android.
So, when you call yourself "Legal Eagle", does that mean that you really are ... en eagle?