US DoJ antitrust probe interviewing developers over Apple's App Store activity
Developers of iOS apps have been interviewed by investigators working for the US Justice Department about Apple's App Store, as part of an antitrust probe into major tech companies and their control over digital marketplaces, and whether they are competing fairly.
Announced in July 2019, the Justice Department probe aims to examine the level of control companies the size of Apple has over the market at large, as both operators and participants. While open, the probe has progressed relatively quietly, with few public signs of progress at this stage, though it seems the agency is now talking to firms potentially affected by antitrust issues.
Speaking to Reuters, Mocicip chief developer Suren Ramasubbu claims he was interviewed by an investigator in November over the matter, specifically about how Apple interacted with the company. A parental control app, Mobicip was temporarily removed from the App Store over failing to meet requirements set by Apple, Ramasubbu told investigators.
The investigators are continuing to talk to others, as a report source familiar with the probe said a small number of developers were being contacted. It is believed to be the first indication that the investigation is looking into Apple's App Store practices.
Apple did not comment to the report, but referred to a website statement about how the App Store aims to hold apps "to a high standard for privacy, security, and content."
The probe is a review to assess "the widespread concerns that consumers, businesses, and entrepreneurs have expressed about search, social media, and some retail services online," the DoJ said at its announcement. Its Antitrust Division was confirmed as "conferring with and seeking information from the public, including industry participants who have direct insight into competition in online platforms, as well as others."
"Without the discipline of meaningful market-based competition, digital platforms may act in ways that are not responsive to consumer demands," said Assistant Attorney General Makan Delrahim of the Antitrust Division at the time. "The Department's antitrust review will explore these important issues."
These markets include the impacts on fields such as retail, social media, and search, with the App Store classifying under the retail category. The review does not currently have any fixed goals, outside of discovering if there are antitrust problems to at all, with a view to possible prosecution for law violation.
The DoJ is not the only one examining the tech giants, as the Federal Trade Commission's own antitrust efforts have been in operation for a year.
Announced in July 2019, the Justice Department probe aims to examine the level of control companies the size of Apple has over the market at large, as both operators and participants. While open, the probe has progressed relatively quietly, with few public signs of progress at this stage, though it seems the agency is now talking to firms potentially affected by antitrust issues.
Speaking to Reuters, Mocicip chief developer Suren Ramasubbu claims he was interviewed by an investigator in November over the matter, specifically about how Apple interacted with the company. A parental control app, Mobicip was temporarily removed from the App Store over failing to meet requirements set by Apple, Ramasubbu told investigators.
The investigators are continuing to talk to others, as a report source familiar with the probe said a small number of developers were being contacted. It is believed to be the first indication that the investigation is looking into Apple's App Store practices.
Apple did not comment to the report, but referred to a website statement about how the App Store aims to hold apps "to a high standard for privacy, security, and content."
The probe is a review to assess "the widespread concerns that consumers, businesses, and entrepreneurs have expressed about search, social media, and some retail services online," the DoJ said at its announcement. Its Antitrust Division was confirmed as "conferring with and seeking information from the public, including industry participants who have direct insight into competition in online platforms, as well as others."
"Without the discipline of meaningful market-based competition, digital platforms may act in ways that are not responsive to consumer demands," said Assistant Attorney General Makan Delrahim of the Antitrust Division at the time. "The Department's antitrust review will explore these important issues."
These markets include the impacts on fields such as retail, social media, and search, with the App Store classifying under the retail category. The review does not currently have any fixed goals, outside of discovering if there are antitrust problems to at all, with a view to possible prosecution for law violation.
The DoJ is not the only one examining the tech giants, as the Federal Trade Commission's own antitrust efforts have been in operation for a year.
Comments
What boggles my mind is that this model of running a platform is what made app sales so huge and helped bring down the price of apps AND helped lessen software piracy AND helped create a very private and secure platform. Now they want to dismantle it and let it fall back to its old ways.
Apple asking for a 30% cut is very modest. Apple is barely making any actual profit from the App Store and instead putting it back to the actual infrastructure.
1. The customer is always right.
This does not account for the fact that we are all often ignorant, pig-headed and selfish. Consumer demands should often be treated like the demands of three-year-olds.
2. Market-based competition is always meaningful.
The majority of market competition is a race to the bottom that encourages a number of actions that society incurs costs from.
3. Digital platforms need external forces to control their behaviour.
Well, this one I'll concur with. But if you're talking about discipline, I think there's one company that has shown it can durably adhere to a set of values and still respond to customer requests.
Frankly, the biggest consumer demand right now is for our privacy to be respected. If the DoJ wants to regulate something, perhaps the open slather approach to surveillance is a more worthy goal?
But that's the point. Those $B's are at risk here. If you can't make the product you want, then why bother? If they start dismantling the platform, then it's probably time to move onto something else. Because where does it end? Apple can't use their A-series SoC unless they offer them to other OEM's? It's bad enough the EU is trying to force Apple to ditch their Lightning port. Soon enough innovation will completely die when there's no point in inventing proprietary technology when you're unable to make use of it to compete against competitors.
Would be fun to see Apple release a cheap "closed" iPhone Lite. Just Apple's apps and services with a few select invite-only 3rd party apps (all free, of course). Almost everything else is on the web anyway.
Well government can't seem to extract any money from actual monopolies, so now they want to change the meaning of monopoly from majority share of the market, to significant share of user base in that market. And they want to change it so that monopoly can also include sub-markets rather than the whole of the open market -- Apple has 100% share of the iOS market, therefor, they are a monopoly.
However the argument is that Apple is squelching competition in the App Store in favor of their own offerings - to, uh, make less money from 3rd party app sales? LOL
US DoJ antitrust probe interviewing developers who would still be nobodys overwere it not for Apple's App Store activity
Fixed that for ya.
Yes, yes, I know, I'm a jerk. I learned to live with that a long time ago.
Personally, I would be surprised if Apple is not forced to open the platform up to competition.
Apple depends on the apps. Shutting its own App store down would not be a wise decision.