Epic Games, Android 12 & Twitter Updates - Tech News

The Ever-Evolving World of Mobile Apps

Welcome back to This Week in Apps, the definitive TechCrunch series dedicated to recapping the latest developments in mobile operating systems, applications, and the broader app economy.

The app industry demonstrates continuous expansion, achieving a record 218 billion downloads and $143 billion in global consumer expenditure in 2020. Furthermore, consumers devoted an impressive 3.5 trillion minutes to utilizing apps on Android devices alone last year. In the U.S., app usage now surpasses the time spent watching live television.

The Economic Impact of Apps

Apps are not merely a source of entertainment; they represent a substantial business opportunity. Companies prioritizing mobile platforms held a combined valuation of $544 billion in 2019, a figure 6.5 times greater than those without a mobile focus.

Investment in mobile companies reached $73 billion in 2020, marking a 27% year-over-year increase. This Week in Apps provides a centralized resource for staying informed about this dynamic industry, offering news, updates, funding announcements, mergers, acquisitions, and recommendations for new apps and games.

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Top Story: App Store Ruling – Not a Monopoly

Friday brought significant news regarding the App Store, overshadowing earlier reports of Epic Games’ attempt to re-enter the South Korean App Store following new legislation.

U.S. District Judge Yvonne Gonzalez Rogers issued a ruling in the Epic Games v. Apple antitrust case. The judge largely favored Apple, determining that Apple was not engaging in monopolistic practices. The court found that both parties had incorrectly defined the relevant market; it wasn’t solely the App Store or gaming, but the $100 billion market for digital mobile gaming transactions.

Despite Apple’s financial success – holding over 55% market share and achieving high profit margins – the judge ruled this success was “not illegal” under either federal or state antitrust law.

Key Outcomes of the Ruling

• Epic Games was found to be in breach of contract for implementing its own payment system within Fortnite on iOS and owes Apple $12 million.
• Apple is not required to host third-party app stores or allow sideloading of apps on its devices.
• However, the judge determined Apple engaged in anticompetitive behavior under California’s competition laws regarding anti-steering provisions.

This means Apple can no longer prohibit developers from including links or calls to action directing customers to alternative purchasing methods outside of Apple’s system.

This is a significant win for developers who have long sought the ability to direct customers to their own websites for purchases, avoiding Apple’s in-app purchase commissions. Apple previously reduced commissions to 15% for developers earning under $1 million annually, but still blocked external payment references.

Recent Policy Shifts

Recent concessions by Apple, including settlements with Japanese regulators regarding “reader apps” and allowing developers to use customer contact information for alternative payment notifications, foreshadowed this policy change. South Korea’s new law also mandated Apple and Google to permit third-party payment systems.

The full ramifications of this policy shift remain to be seen. Apple will likely maintain its in-app purchase system as an option and may establish new rules regarding the placement of links to alternative purchasing methods. It’s probable that Apple will permit developers to steer users outside the app, similar to the current system for “reader” apps.

Developer adoption is also uncertain. Smaller developers may find it impractical to support two payment systems, and some may fear potential repercussions for avoiding IAPs, such as reduced App Store visibility.

Consumer Protection and Future Concerns

The ruling also raises concerns about consumer protection. The proliferation of scam apps within the App Store could be exacerbated if these apps bypass IAPs. This may necessitate Apple to expand its App Review team to combat fraudulent activity and subscription abuse.

The ruling highlighted key statistics regarding the App Store’s revenue streams:

• Gaming apps generate approximately 70% of all App Store revenue.
• Less than 10% of App Store consumers drive this revenue.
• Over 80% of consumer accounts generate virtually no revenue.
• 80% of apps on the App Store are free.
• Apple holds over 55% market share in digital mobile gaming transactions.
• Games accounted for 76% of App Store revenue in 2017, 62.9% in 2018, and 68% in 2020.

Weekly News Highlights

Apple Updates

• Hardware Event Announcement: Apple announced a hardware event for September 14th, expected to unveil new iPhones (potentially the iPhone 13), Apple Watch Series 7, and AirPods.
• Expanded Lawsuit: Another App Store monopoly lawsuit expanded to include developers alleging suppression of free apps and rejection of others.

Android Updates

Android 12 Beta 5: The final developer beta for Android 12 was released, nearing the public launch of the new operating system.

Android for Cars App Library 1.1: Google released version 1.1, completing the transition to Jetpack.

Xiaomi Update Promise: Xiaomi pledged 3 years of Android OS updates and an additional year of security patches for upcoming devices.

JioPhone Next Delay: The launch of the JioPhone Next in India was delayed due to chip shortages.

E-commerce

• Leafly In-App Ordering: Leafly launched in-app marijuana ordering following changes to Apple’s App Store rules.
• Amazon’s Farmer App: Amazon introduced a mobile app providing real-time advice to Indian farmers.
• Shopee’s Latin American Growth: Shopee surpassed Mercado Libre as the top shopping app in Latin America.

Augmented Reality

• Snap’s New Hire: Snap hired Nishad Pai as its Global Head of Platform Partnerships Business Development.

Fintech

• SEC Investigation: The SEC is investigating Coinbase’s crypto yield-generating product, Coinbase Lend.

Social

Ray-Ban Stories: Facebook launched Ray-Ban Stories, smart glasses developed in partnership with Ray-Ban.

Twitter Communities: Twitter launched “Communities,” allowing users to connect with others sharing similar interests.

Twitter Feature Tests: Twitter is testing emoji reactions, full-width photos/videos, a “good bot” label, and a soft-block feature.

Peanut Expansion: Social network Peanut expanded to include Peanut Menopause, a new feature for women experiencing menopause.

Social App Spending: Consumer spending in social apps is projected to reach $17.2 billion by 2025.

Photos

• Google Photos Updates: Google Photos added new print sizes and canvas prints.
• Dispo NFT Pilot: Dispo is piloting a feature allowing users to sell photos as NFTs.
• Glass App Launch: Glass, a photo-sharing app for photographers, launched as an alternative to Instagram.

Messaging

• WhatsApp Encryption: WhatsApp added end-to-end encryption for chat backups in the cloud.

Dating

Tinder Explore: Tinder launched Tinder Explore, a new section for interactive and social features.

Tinder CEO Change: Tinder CEO Jim Lanzone is leaving to become the CEO of Yahoo.

Streaming & Entertainment

• Spotify Playlist Concerns: Spotify playlist curators are raising concerns about the reporting system.
• Apple Music & Shazam: Apple Music will use Shazam to address royalty issues for DJ mixes.

Gaming

• Amazon Game Streaming Expansion: Amazon’s game-streaming service added support for Chromebook and Fire Tablets.
• Genshin Impact Success: Genshin Impact generated $151 million in its first week of version 2.1.
• Google Indie Games Festival Winners: Google announced the winners of its Indie Games Festival.

News & Reading

Microsoft Start Launch: Microsoft launched Microsoft Start, a personalized news service.

Utilities

• Apple Maps Look Around Expansion: Apple Maps expanded Look Around to Italy, Vatican City, San Marino, and Andorra.

Government & Policy

• EU Investigation: Google is under investigation in the EU for requiring Android manufacturers to pre-install Google Assistant.

Funding and M&A Activity

💰 🤝 Jam City: Mobile game publisher Jam City raised $350 million and completed the acquisition of Ludia for $165 million.

💰 Headout: Travel app Headout raised $12 million in Series B funding.

💰 Whatnot: Live-shopping startup Whatnot is raising capital at a $1.5 billion valuation.

💰 Varo Bank: Fintech app Varo Bank raised $510 million in Series E funding.

💰 Nuula: Financial comparison app Nuula raised $120 million in funding.

💰 Jeff: Financial comparison app Jeff raised $1.5 million in seed extension funding.

💰 OLIO: Food sharing app OLIO raised $43 million in Series B funding.

💰 Mayk.it: Social music creation app Mayk.it raised $4 million in seed funding.

💰 Flo: Fertility tracking app Flo raised $50 million in Series B funding.

Recommended Downloads

• Tape It: An AI-powered music recording app for iOS.
• Marvel Unlimited (update): The Marvel Unlimited app was overhauled with new Infinity Comics.
• ETA 3 (update): ETA 3 is a rebuilt Apple Watch app for travel times.
• Sound Off: A voice-journaling app for iOS.