A Case Filed By The European Union Questions Apple Policies
An antitrust case was recently filed against Apple in the European Union. A lot of companies have become vocal regarding supporting this action including the Match Group.
The Match Group is the owner of numerous dating apps including Hinge and Tinder, in addition to Epic Games, the creator of Fortnite. Statements have been issued by the Match Group in support of this action.
One of these statements was issued by a spokesperson for the Match Group. The representative stated Apple is a dominant partner in addition to a dominant platform. The actions of the company force most of the consumers to spend more money to purchase third-party apps.
According to the spokesperson, these apps have been defined by Apple as digital services.
The spokesperson further stated numerous industries such as dating services have no choice other than handing over 30 percent of the revenue from their apps to Apple.
The statement concluded by welcoming an opportunity to talk to Apple so an equitable fee distribution can be reached for the App Store, and interested parties in both the United States and the European Union.
Two antitrust investigations were filed by the European Union yesterday against Apple. One of these investigations is regarding the practice of Apple to take a revenue percentage of 30 percent from every purchase consumers make through the App Store.
According to Spotify, the App Store is currently being used by Apple with the intent of limiting the choice of consumers, suffocating innovation, and promoting the Apple Music Service about others.
One of the companies pushing for an investigation is Rakuten. The company believes the 30 percent commission charged by Apple is not competitive for eBooks available for purchase through the App Store. The company also stated Apple is promoting its book service above all others.
A spokesperson responded by making a statement. The spokesperson said the complaints from the European Commission were both baseless and disappointing.
According to the spokesperson, the allegations are coming from a few companies interested in a free ride, and unwilling to follow the same rules as the majority.
The statement said the playing field was level, so any determined individual or company has the same chance of success.
In the instance of the Match Group, every member purchasing or upgrading a subscription using the app are subject to a revenue cut directly from Apple.
A good example is Tinder. The company offers subscription plans and a la carte features through the app. A 30 percent cut is paid by Epic Games for all in-app purchases.
Apple does not receive a cut form every app. There are exemptions including Airbnb and ride-sharing apps. There are also specific video streaming services receiving special deals such as Amazon Prime.
These streaming services are not required to pay Apple the 30 percent cut for individual services including renting televisions shows or movies. According to Tim Sweeny, the CEO of Epic Games, Apple has made numerous side agreements.
In a recent tweet, he stated Epic will not encourage or accept any specialized deals from Apple. Concerns are also coming from smaller app developers regarding the practices of Apple.
As the CTO of Hey email service and Basecamp, David Heinemeier Hansson referred to Apple as gangsters. He stated an update for a bug fix was rejected by Apple.
Apple then asked for a commitment to a subscription in-app to prevent the company from being removed. The CTO was shocked at the brazenness of this threat. He stated he always believed threats were meant to be a lot more subtle.
He said in this instance, the threat from Apple was crystal clear, and right up front. In an email from Apple, a statement was made that every developer is required to adhere to the strict business models and guidelines. Apple refused to make any comment regarding Hey. The company did state an option for an in-app purchase is required by Apple for any content accessible through another platform.
According to Apple, the phone conversation with the team from Hey was typical. Apple stated they work with all of the developers to ensure compliance is met. Apple also stated this particular app never should have received approval to start with.
