Greetings and welcome to This Week in Apps, the TechCrunch column dedicated to summarizing the newest developments in operating systems, the applications compatible with them, and the financial activity surrounding them.

The mobile application market continues to thrive, achieving an impressive 204 billion downloads and $120 billion in direct consumer expenditure during 2019. Currently, individuals devote an average of three hours and forty minutes daily to app usage, a figure comparable to time spent watching television. Applications represent more than just a leisure activity – they constitute a significant commercial sector. In 2019, businesses prioritizing a mobile-first approach demonstrated a collective valuation of $544 billion, which is 6.5 times greater than companies lacking such a focus.

Through this ongoing series, we aim to provide you with current information from the application landscape, presented each week.

Top Stories

Apple declared monopoly by U.S. House Judiciary subcommittee on antitrust

A U.S. House Judiciary subcommittee focused on antitrust issues has determined that Apple holds monopoly power within the United States, alongside three other major technology firms. The resulting report proposes that legislative action be taken, potentially including the restructuring of these companies. Regarding Apple specifically, the investigation found the company possesses substantial influence over the market for distributing applications, primarily through its App Store platform. While acknowledging the advantages the App Store offers to both users and developers, the report asserts that Apple manages the platform in a manner that stifles competition and leverages developer information for its own benefit.

Apple officially stated its strong disagreement with the report’s findings, expressing this sentiment “with respect to Apple.”

Over the last year, Apple has faced a growing volume of concerns from developers of iOS applications concerning its policies regarding in-app purchases and restrictions on informing users about alternative subscription payment options outside of the App Store. These policies have led to disputes with prominent companies such as Basecamp’s Hey email application, Spotify, Epic Games (currently involved in legal proceedings), and cloud gaming platforms including xCloud and Stadia.

Further developer grievances regarding potential abuses of power by Apple have come to light this week.

The CEO of ProtonMail recently described his company’s interactions with Apple, characterizing the tech giant’s business practices as akin to “Mafia extortion.” Apple reportedly required ProtonMail to integrate in-app purchases, despite the app having previously functioned largely as a free service, similar to WordPress. When ProtonMail notified its user base of this change via email, Apple reportedly threatened to remove the app and halt all future updates.

In a separate instance, Apple attempted to dictate content policies for the channels within the private messaging app Telegram, specifically requesting the closure of channels used by Belarusian protesters to identify individuals associated with the nation’s government.

Microsoft Challenges Apple by Embracing “App Fairness” Standards

A group of leading application developers formed the “Coalition for App Fairness” last month to address perceived imbalances of power within the technology sector, primarily focusing on Apple, with some attention also given to Google. This week, Microsoft aligned itself with these criticisms by declaring its commitment to implementing 10 “app fairness” principles within its Microsoft Store for Windows 10. While not directly naming Apple, the company expressed “reservations regarding app stores on alternative digital platforms.”

Microsoft articulated its position in a published statement:

The company highlighted its policy of permitting alternative app distribution channels, such as those offered by Epic and Steam, on the Windows operating system. It further stated that users retain the freedom to select their preferred payment options and that developers are permitted to distribute their applications independently over the internet without limitations. Microsoft also emphasized its commitment to refraining from leveraging its market position to create an unfair competitive environment.

While Microsoft’s stance is commendable, the move is likely motivated by a desire to preempt potential regulatory investigations into its own app stores as authorities examine large technology companies for anti-competitive practices. Specifically, the company aims to avoid increased oversight of its Xbox store, where these principles will not be implemented.

It is also important to consider that Apple’s macOS operating system for desktop computers does not prevent developers from distributing applications directly through the internet, making the Microsoft Store a less direct parallel to the restrictions found on the iOS App Store.

App Revenue Reached an All-Time High of $28 Billion in Q3

The ongoing COVID-19 pandemic has sustained elevated levels of mobile device utilization, as public health guidelines encourage social distancing and lockdowns. Consequently, individuals are increasingly relying on digital platforms for professional activities, education, and social interaction. This shift has significantly contributed to unprecedented levels of expenditure within the app ecosystem, alongside a substantial increase in overall app usage. A recent report published by App Annie indicates that users worldwide downloaded 33 billion new applications during the third quarter and invested a record $28 billion in apps – a 20% rise compared to the same period last year. Furthermore, collective time spent within apps exceeded 180 billion hours each month throughout July, August, and September of 2020, representing a 25% year-over-year increase.

In contrast, Sensor Tower’s report for Q3 estimated app revenue to be in excess of $29 billion, while their figures for new app downloads were recorded at 36.5 billion.

News Summary for the Week

Mobile industry Lawsuits

• TikTok and the U.S. government legal dispute. The U.S. government has filed an appeal regarding the court decision that blocked the Trump administration’s attempt to prohibit TikTok. The White House maintains that TikTok poses a risk to national security. Simultaneously, the application has been prohibited within Pakistan.
• Antitrust allegations against Google in India center around claims that the company misused its dominant position with the Android operating system in the smart television marketplace.
• Philip Shoemaker’s testimony in the Apple vs. Epic case revealed his perspective as former head of App Store Review (March 2009 – April 2016). Shoemaker stated the App Store was utilized to safeguard Apple’s commercial interests, asserting that Apple was not transparent regarding equitable treatment of all developers. He further indicated that App Store regulations lacked consistency and that Apple had “difficulty avoiding the use of the App Store to disadvantage rivals.” He also suggested that Apple Arcade could potentially contravene the same guidelines that prevent Stadia and Game Pass from being available on the App Store.
• Epic’s motion to reinstate Fortnite on the App Store was denied by the judge. Consequently, Fortnite will remain unavailable on the App Store until the trial commences, which is scheduled for May 3, 2021, according to a recent court document.

Platforms & Services

• Apple postpones the deadline for app updates utilizing the UIWebView API, extending it past the end of 2020. Apple introduced WKWebView in 2014 as a means to integrate web content into applications “efficiently, safely, and reliably across iOS and macOS,” as stated by the company. It has since encouraged developers to implement WKWebView in place of UIWebView and WebView—both of which have been officially deprecated. This decision may have been motivated by a desire to avoid further reports of app rejection.
• Apple introduces new subscription server notifications for testing purposes. These new notifications provide developers with immediate updates regarding a subscriber’s status, enabling them to design tailored user experiences. Initially, developers will receive notifications concerning subscribers who automatically renew and another alerting them when the App Store prompts users to accept updated subscription pricing.
• The Apple Developer app now facilitates enrollment for developers located in the U.K. and Ireland.
• Google is actively recruiting for its Android Security team. A job advertisement indicates that Google Play is expanding its Android Security team to identify vulnerabilities within Android applications, including those related to COVID-19, elections, and sensitive data handling.
• Google Assistant gains the ability to control functions within Android apps. The voice command “Hey Google” can now not only launch applications but also conduct searches and execute common tasks within them. Users can also establish personalized voice commands as shortcuts.
• Android implements sound notifications. The operating system now offers assistance to individuals with hearing impairments by providing alerts for sounds such as appliance signals, running water, infant noises, fire alarms, dog barks, and door knocks, among others. A comparable feature is available on iPhone.

Trends

• TikTok surpasses Instagram in popularity among U.S. teenagers. Recent findings from Piper Sandler indicate that 34% of teens favor Snapchat as their primary social media platform, with TikTok close behind at 29%, and Instagram trailing at 25%.
• Google introduces “Stories” functionality to its search app. The company has integrated Stories into its iOS and Android search applications, showcasing visually-focused content from various publishers utilizing the AMP format.
• Instagram introduces customizable app icons and new features. To commemorate its tenth anniversary, Instagram has launched a selection of custom icons that users can utilize to personalize their home screens, alongside a “Stories” map offering a retrospective view and enhanced anti-bullying tools. The company did not disclose information regarding its user base or financial performance.
• Microsoft follows Amazon’s lead in circumventing App Store regulations for gaming platforms. Phil Spencer, head of Microsoft Gaming, communicated to staff that the company aims to release a browser-based version of its Xbox Game Pass streaming service in 2021. Amazon previously announced its intention to make its Luna cloud gaming service available on iPhones through a web application.

Other News

• More than 240 Android applications were discovered displaying advertisements in a manner inconsistent with Google Play Store guidelines. These advertisements appeared outside the designated app boundaries, manifesting as pop-ups or full-screen interruptions. Google prohibited this form of advertising in February 2020, following the identification of over 600 apps engaging in such practices to users. (ZDNet)
• Baidu has introduced Kankan, a new platform designed to compete with Douyin and Kuaishou. Currently, Kankan functions primarily as a video search engine. The application’s interface closely resembles Baidu’s primary search app, but with a specific emphasis on video content and live streaming. (SCMP)
• Google Fi service is now compatible with a wider range of devices, including the latest 5G-enabled smartphones from both Samsung and Google. (Compatible models include Galaxy Note20 5G, Galaxy Note20 Ultra 5G, Galaxy S20 5G, Galaxy S20+ 5G, Galaxy S20 Ultra 5G, Galaxy A71 5G, Pixel 5 and Pixel 4a 5G) (Google)
• Instagram Threads is evolving into a more comprehensive messaging service, effectively becoming an extension of Instagram Direct. Previously positioned as an app for close friends, Threads now allows messaging with all Instagram contacts. The company intends to integrate additional messaging features from the broader Instagram platform, aligning it with the infrastructure supporting cross-platform messaging between Instagram and Facebook Messenger. However, Instagram has stated that Threads will not initially support cross-platform messaging. (TechCrunch)
• The mobile role-playing game Genshin Impact quickly rose to become the second highest-grossing game globally within its first week of release. The game’s Chinese developer, miHoYo, reported revenue of $60 million generated through the App Store and Google Play. (Sensor Tower)
• Spotify has released Soundtrap Capture, a new application focused on collaborative music creation. Spotify initially acquired Soundtrap in 2017. This new app is intended to replace Voice Memo as a tool for saving audio tracks and sharing them with collaborators. The application has been undergoing beta testing since earlier this year. (TechCrunch)
• Triller is actively recruiting talent from TikTok by offering financial incentives and other perks. The U.S.-based competitor is providing cash payments, vehicles, upscale dining experiences, and access to creator residences in an effort to attract creators, particularly given the ongoing uncertainty surrounding TikTok’s future in the United States. While offering a similar user experience, Triller currently lacks features such as duets and a comparable content library. Reports suggest that Triller may have previously misrepresented its user statistics. (The New York Times)

Funding and M&A

• Picker secures €1.3 million in seed funding. This application enables users to find and purchase items that are suggested by individuals they follow. The investment round featured participation from Btov, a Berlin-based firm, alongside contributions from various angel investors.
• Zynga completes acquisition of Rollic. Zynga has finalized the purchase of Rollic, a developer of hyper-casual games located in Istanbul. Rollic’s game portfolio includes popular titles such as Go Knots 3D and Tangle Master 3D. While not a complete takeover, Zynga has acquired 80% ownership of Rollic for $180 million, with plans to obtain the remaining stake over the subsequent three years through further payments.
• GoPuff obtains $380 million in funding. This Philadelphia-based company operates an application allowing customers to order and receive deliveries of everyday essentials – including over-the-counter medications, infant products, and alcoholic beverages – within a timeframe of 30 minutes or less. Accel and D1 Capital Partners spearheaded the latest funding round.
• Dispo, a camera app, raises $4 million in seed funding. Seven Seven Six, the new venture fund established by Reddit co-founder Alexis Ohanian, has made its initial investment in Dispo, a social media platform based in Los Angeles. Originally called David’s Disposable, the application was developed by well-known YouTuber David Dobrik and his associate Natalie Mariduena. The app’s unique feature is its delayed photo reveal, requiring users to wait until the following day to view their unedited pictures.
• Your.MD’s healthcare app receives €25 million in funding. The London-based company’s Healthily app utilizes artificial intelligence to assist users in assessing their symptoms prior to consulting a physician. This funding round was led by Reckitt Benckiser (RB), a global health and hygiene organization.

Downloads

Up Spell

Ken Kocienda, a well-known Apple software engineer and designer previously involved with the initial iPhone and the creation of touchscreen autocorrection, has released his debut iOS application. This new app, titled Up Spell, is a word game that tasks players with identifying as many words as possible within a two-minute timeframe. The game utilizes a comprehensive word list compiled by Kocienda himself, specifically designed to incorporate proper nouns and words containing apostrophes, such as S’Mores.

Bold icons

https://twitter.com/doney/status/1314235180870258693

Responding to the recent changes in the iOS 14 home screen design, graphic artist Doney den Ouden developed a collection of fresh icons intended for use on iPhones and iPads. This set includes a vividly colored option named “Bold,” a darker alternative called “Bold Dark,” and icons featuring a completely white backdrop, known as “Bold Light.” While interface redesigns for iOS are a common practice among designers, the introduction of Shortcuts – allowing apps to be launched with personalized icons – has motivated many to explore these projects as potential income streams.

Google Arts & Culture

Although it’s not a recently released application, Google Arts & Culture has unveiled a new feature called “Art Filter.” This innovative tool utilizes augmented reality (AR) filters modeled in 3D, drawing inspiration from globally recognized artworks, artifacts, and adornments. Users can transform their appearance to resemble self-portraits by Van Gogh or Frida Kahlo, or even embody the renowned Girl with a Pearl Earring. Google also notes that the app allows users to experience historical settings by virtually wearing items like a traditional Samurai helmet or an impressive Ancient Egyptian necklace. The application is available for complimentary download on both Android and iOS platforms.

Harbor

The emergency-preparedness application, Harbor, has been released with the support of $5 million in funding. This app aims to make preparing for emergencies more engaging by turning necessary tasks into a game. The application assesses the potential emergencies most relevant to your specific geographic location.