Australia starts second fight with Google, this time over whether app stores leak data, gouge devs, steal ideas and warp markets
- Reference: 1599550268
- News link: https://www.theregister.co.uk/2020/09/08/australia_starts_second_fight_with/
- Source link:
The [2]issues paper [PDF] outlining the scope of the inquiry names only Apple and Google as of interest. The paper also mentions the recent Apple/Epic spat over developer fees to access the app store and proposes to ponder sideloading as a means of bypassing curated stores.
The Australian Competition and Consumer Commission, which will conduct the inquiry, has set out the following matters it wishes to probe:
The ability and incentive for Apple and Google to link or bundle their other goods and services with their app marketplaces, and any effect this has on consumers and businesses.
How Apple and Google’s various roles as the key suppliers of app marketplaces, but also as app developers, operators of the mobile licensing operating system and device manufacturers affect the ability of third party app providers to compete, including the impact of app marketplace fee structures on rivals’ costs.
Terms, conditions and fees (including in-app purchases) imposed on businesses to place apps on app marketplaces.
The effect of app marketplace fee structures on innovation.
How app marketplaces determine whether an app is allowed on their marketplace, and the effect of this on app providers, developers and consumers;
How where an app is ranked in an app marketplace is determined.
The collection and use of consumer data by app marketplaces, and whether consumers are sufficiently informed about and have control over the extent of data that is collected.
Whether processes put in place by app marketplaces to protect consumers from harmful apps are working.
The document also reveals an intention to probe whether app store operators “identify which product development ideas are successful and emulate these ideas in their own apps” and seeks “views on the data sharing arrangements between apps and app marketplaces, and any views on the potential for app marketplaces to use data to identify, and respond to, potential competitors to the marketplace’s own apps.”
Apple hits back at Epic, says Fortnite crew wants a 'free ride' on fees: Let the app store death match commence [3]READ MORE
The Commission has created a survey for consumers and [4]another for developers . The latter asks for comment on “adequacy of communications from the app store during the review process” and the experience of appealing decisions. Which should make for some tasty reading once the inquiry reports in March 2021.
The ACCC lists “legislative reform to address systemic issues” as one possible outcome from the inquiry. Which would be tastier still, given the furor over Australia’s current proposed laws. ®
Get our [5]Tech Resources
[1] https://www.theregister.com/2020/09/01/facebook_australian_news/
[2] https://www.accc.gov.au/system/files/Digital%20platform%20services%20inquiry%20-%20March%202021%20report%20-%20Issues%20Paper.pdf
[3] https://www.theregister.com/2020/08/22/apple_epic_lawsuit/
[4] https://consultation.accc.gov.au/communications-1/app-stores-developer/
[5] https://whitepapers.theregister.com/
Depends on developer
If you are a small dev then app stores great as removes the heavy lifting of app distribution, update, marketing (to some extent) & payment (easy for e.g. a one man band to make a nasty error on payments if going it alone, having Apple or Google deal with financial stuff gives peace of mind).
If you are a big hitter like Epic, then its a PITA, as you have the experience and numbers to deal with distribution, payments etc.
No "scanning apps for nasties" will be foolproof (as always an ongoing arms race vs malware deployers), but the efforts Apple & Google make is better than nothing (in the same way that running anti virus software on a PC is generally is better than no anti virus) and will at least catch non cutting edge malware.
As a user I have found useful apps (that I would be unaware of otherwise) both by searching on app store, and also by app store recommendations.
So, trustworthy (to some degree) app stores are (IMHO) good for user and small dev but bad for major software houses (hence Epics legal shenanigans)
.. thus, like many things in life, its complicated & depends on viewpoint
Re: Depends on developer
Yes, the basic idea is good, the implementation over 10 years ago was reasonable, for set-up costs. Now it is draconian for established players and very unfair, when it comes to paying subscriptions and in-app content that don't go anywhere near the app stores (E.g. magazine subscription, where the media is delivered from the publisher's website or in-game currency, which just needs transaction processing, which doesn't cost 30%). Publishers should be given the option of using the app store for transactions or their own payment processors, if they have an established provider.
Disallowing 3rd party stores and side-loading is also wrong. Point out that the user does so at their own risk and Google/Apple can't be held responsible if you compromise the system, by all means, but they shouldn't be banned outright.
Re: Depends on developer
tiggity,
I strongly suspect this is one of the reasons that Apple and Google will lose this battle with competition regulators. It's suspicious that they both charge the same amount. But in an even bigger sign that they're charging monopoly rates and have market domination - even the big boys don't get discounts. There's no negotiation for volume, which is incredibly unusual.
They're less severe on bigger companies having control of accounts though, because they know they'd get slaughtered. So Microsoft Office have an app, but they don't get 30% of all the subscription income - and MS aren't forced to do that by in-app purchase either.
Break them up
At this point, it would be easier for Apple and Google to be broken up into several businesses. Possibly more efficient for them as well. I would claim it's even only a question of time until this happens.
bundled services
" The ability and incentive for Apple and Google to link or bundle their other goods and services with their app marketplaces
How Apple and Google’s various roles as the key suppliers of app marketplaces, but also as app developers, operators of the mobile licensing operating system and device manufacturers "
This is the crux of the matter: they (Apple and Google) can leverage their position in 1 field to impose their view in another unrelated field. Best example being ad services. I think this is very similar to Microsoft bundling Windows with IE.
It should be forbidden for manufacturers to also be unique providers for the OS, app store and payment services. Keyword being " unique ". In Apple's case you must also add " HTML engine ". This is basic anti-competitive stuff, should be a no-brainer.
App Store / Play Store
The charges are wrong, just plain wrong.
App Store & Play Store are an offering to the user to BUY the damn device.
The security scanning etc.. THAT is what the manufacturers should be offering to make THEIR shiny product worth buying.
It is a monopoly (other games are available) 30% disgusting ... over £1k for a phone disgusting
"whether app stores leak data, gouge devs, steal ideas and warp markets"
Yes, yes, yes and yes.