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Apple’s App Store Rules Scrutinized in U.S. Antitrust Probe

3 points by aspenmayer 6y ago

aspenmayer 6y ago
> Government lawyers have met with developers as recently as last week and are asking questions about Apple’s rules that require apps to use its App Store payment system for subscriptions, said the people, who declined to be identified discussing a confidential matter. Apple pockets up to a 30% cut when apps use the payment technology. > The Justice Department has met with both high-profile and small developers that sell apps. “We’ve spoken with the DOJ regarding Apple and the App Store twice,” said David Heinemeier Hansson, the founder of software company Basecamp, which created the Hey email app, in an interview. “We shared our experience, relayed the experience of others, and put them in contact with a developer who didn’t want to go public with their story. I’m really glad that the DOJ is looking into this, because we need both legislative action, but also enforcement.” > The government is also asking questions about the Google Play app marketplace, two of the people said. It isn’t clear whether scrutiny of Google Play is part of the Justice Department’s ongoing antitrust investigation into Google or whether the questions are being used to inform the Apple inquiry. > Unlike Apple, Google’s Android phones allow users to access multiple app stores in addition to Google Play, which may help insulate the company from an antitrust enforcement action over its app store practices. Apple has said it doesn’t allow multiple stores for security reasons. > Apple’s growth is at stake. If apps could sell subscriptions outside the App Store, developers could stop using Apple’s payment system, causing the company to lose revenue. Fees from App Store transactions are estimated to be one of the largest contributors to Apple’s services revenue, a business the company is trying hard to expand. For those who have trouble with the link: https://outline.com/gRHRxN https://outline.com/gRHRxN

3 points by aspenmayer 6y ago

> Government lawyers have met with developers as recently as last week and are asking questions about Apple’s rules that require apps to use its App Store payment system for subscriptions, said the people, who declined to be identified discussing a confidential matter. Apple pockets up to a 30% cut when apps use the payment technology. > The Justice Department has met with both high-profile and small developers that sell apps. “We’ve spoken with the DOJ regarding Apple and the App Store twice,” said David Heinemeier Hansson, the founder of software company Basecamp, which created the Hey email app, in an interview. “We shared our experience, relayed the experience of others, and put them in contact with a developer who didn’t want to go public with their story. I’m really glad that the DOJ is looking into this, because we need both legislative action, but also enforcement.” > The government is also asking questions about the Google Play app marketplace, two of the people said. It isn’t clear whether scrutiny of Google Play is part of the Justice Department’s ongoing antitrust investigation into Google or whether the questions are being used to inform the Apple inquiry. > Unlike Apple, Google’s Android phones allow users to access multiple app stores in addition to Google Play, which may help insulate the company from an antitrust enforcement action over its app store practices. Apple has said it doesn’t allow multiple stores for security reasons. > Apple’s growth is at stake. If apps could sell subscriptions outside the App Store, developers could stop using Apple’s payment system, causing the company to lose revenue. Fees from App Store transactions are estimated to be one of the largest contributors to Apple’s services revenue, a business the company is trying hard to expand. For those who have trouble with the link: https://outline.com/gRHRxN https://outline.com/gRHRxN