This Week in Apps: App Store, Dispo, and Facebook Updates

The Mobile App Landscape: A Weekly Overview

Welcome back to This Week in Apps, your source for the latest developments in mobile operating systems, applications, and the broader app economy. The app industry continues to thrive, achieving a record 218 billion downloads and $143 billion in global consumer spending in 2020.

Last year, users devoted an astounding 3.5 trillion minutes to apps on Android devices alone. Furthermore, app usage in the U.S. now surpasses the time spent watching live television. Currently, the average American dedicates 3.7 hours daily to live TV, contrasted with four hours spent on their mobile devices.

The Business of Apps

Apps are not merely a source of entertainment; they represent a significant commercial opportunity. In 2019, mobile-first companies boasted a combined valuation of $544 billion, 6.5 times greater than their non-mobile focused counterparts.

Investment in mobile companies reached $73 billion in 2020, marking a 27% year-over-year increase. This demonstrates the continued confidence in the app market’s potential.

This week’s focus includes the stalled Arizona app store bill, the unfolding Dispo situation, and Facebook’s new audio initiatives, among other topics.

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Top Stories

Arizona App Store Legislation: A Sudden Halt

A controversial bill, HB2005, intended to regulate the Apple and Google app stores in Arizona, was scheduled for a vote in the Senate on March 24th. However, despite being listed on the agenda, the vote never occurred.

David Heinemeier Hansson, co-founder of Basecamp and a vocal Apple critic, suggested the lobbying system was compromised.

It is true that both Apple and Google engaged lobbyists to oppose the bill, which threatened their ability to maintain their standard 15% or 30% commissions by preventing developers from utilizing alternative payment processors.

Apple deployed lobbyists, including Rod Diridon, and reportedly hired Kirk Adams, a former chief of staff to Arizona Governor Doug Ducey, to negotiate directly with the bill’s sponsor, Representative Regina Cobb.

However, counterarguments emerged, asserting that lobbying from Epic Games and others initially propelled the bill, and many lawmakers lacked a full understanding of its implications. A similar bill had previously failed in North Dakota, and HB2005 appeared to lack sufficient support.

The Coalition for App Fairness (CAF), supporting these bills, stated they are investigating the bill’s disappearance.

Dispo Faces Investor Backlash

The mobile photo app Dispo is now a cautionary tale regarding the risks of partnering with high-profile influencers without thorough due diligence. Following allegations of sexual assault against a member of YouTuber David Dobrik’s “Vlog Squad,” Dispo’s investors are distancing themselves from the app.

Spark Capital announced it would sever ties with the company, as reported by TechCrunch. Dobrik subsequently resigned from the board and the company. Other investors, including Seven Seven Six and Unshackled, pledged to donate any potential profits to organizations supporting survivors of sexual assault.

Dispo was recently valued at $200 million after a $20 million Series A funding round led by Spark Capital. The company released a statement affirming its commitment to continuing development of the platform.

Facebook’s Audio Strategy

New screenshots reveal Facebook’s upcoming audio product, currently in development, closely resembles Clubhouse. The experience appears to be an extension of Facebook’s Messenger Rooms, rather than a standalone application.

Facebook confirmed the images represent exploratory audio efforts, but cautioned they do not reflect a finalized product. The screenshots showcase Clubhouse-like audio rooms with rounded profile icons and a listener section prioritized by the speakers’ friends.

Mark Zuckerberg publicly praised Clubhouse on the platform itself, suggesting social audio will become a prominent broadcasting modality. Facebook appears to be adopting a strategy of replicating successful features from competitors, similar to its responses to TikTok and Snapchat.

Weekly News

Platforms: Apple

Users reported issues with recently created Shortcuts links, displaying a “Shortcut Not Found” message. Apple acknowledged the problem and is working on a resolution.

Apple released its fifth developer betas for iOS 14.5, iPadOS 14.5, and other platforms, followed by public betas. These may be the final beta releases before the public launch.

Apple responded to the Australian Competition & Consumer Commission (ACCC) regarding its App Store investigation, stating developers have alternative avenues to reach iOS users, such as websites. Some developers expressed dissatisfaction with this response.

Apple defended its App Review process to the ACCC, claiming 73% of app submissions receive a review within 24 hours, and developers receive detailed explanations for any non-compliance. It also highlighted a worldwide support line handling 1,000 calls weekly across 175 countries.

The initial witness list for Apple’s legal battle with Epic Games includes Apple CEO Tim Cook, Software Engineering SVP Craig Federighi, and Apple Fellow Phil Schiller. Epic will present testimony from its CEO Tim Sweeney and VP Mark Rein. Executives from Microsoft, Facebook, and Nvidia are also expected to testify.

Platforms: Google

Google launched the Android Ready SE Alliance to ensure new phones support digital alternatives to traditional keys and wallets. This requires tamper-resistant hardware, such as a Secure Element (SE) and StrongBox.

Several Android apps, including Gmail and Google Pay, experienced crashes due to an issue with Android System WebView. Google resolved the problem by releasing updates for the standalone WebView app and Google Chrome.

E-commerce

H&M was removed from major e-commerce platforms in China, including Alibaba’s Taobao, JD.com, and Pinduoduo, due to its decision to stop sourcing cotton from Xinjiang. Similar actions were taken against Nike, Adidas, Burberry, Uniqlo, and Lacoste, leading to endorsements being cancelled by Chinese celebrities.

NBCU partnered with Facebook and Instagram to expand “shoppable opportunities” for its clients on social media.

Fintech

Robinhood, the commission-free trading app, confidentially filed for an IPO.

Social

TikTok belatedly banned accounts posting violent content supporting the military coup in Myanmar, after facing criticism for a delayed response.

TikTok introduced an Ad Library tool allowing marketers to view top-performing ad campaigns.

Snapchat is testing a Snap Remix feature, similar to TikTok Duets, enabling users to repurpose others’ Snaps.

Facebook is developing an app for prisoners re-entering society.

Donald Trump reportedly explored creating his own social networking app with several lesser-known vendors.

Parler claims to have provided the FBI with over 50 posts regarding the Capitol riot prior to January 6th.

The U.K. watchdog raised competition concerns regarding Facebook’s acquisition of Giphy.

Twitter is testing an audience picker for its upcoming Communities feature.

Streaming & Entertainment

Spotify updated its mobile app with new features for its Home hub, including rediscovering recently played songs and identifying new and unfinished podcasts.

Triller reached licensing agreements with music publishers following Universal Music Group’s removal of its entire library.

Clubhouse announced its Android launch will take “a couple of months.”

Gaming

Genshin Impact surpassed $1 billion in mobile revenue within six months of its launch.

Discord is reportedly exploring a sale potentially exceeding $10 billion, with Microsoft as a potential buyer.

PUBG Mobile has generated $5 billion in revenue, averaging $7.4 million per day in 2020.

Google Stadia may soon support touchscreen controls on Android devices.

Education

Apple updated its Schoolwork and Classroom apps with features to enhance remote learning.

Health & Fitness

Tile’s lost item-tracking service integrated with Fitbit wearables.

Health and fitness app downloads increased 20% in 2020 due to the pandemic.

Demand for sleep and wellness apps surged during the pandemic.

Productivity

Slack CEO Stewart Butterfield previewed new features, including asynchronous audio messages and a Clubhouse-like drop-in voice chat.

Slack launched a universal DM system, which was temporarily disabled due to concerns about potential harassment.

Microsoft is discontinuing Cortana support on iOS, Android, and the Harman Kardon Invoke speaker.

Opera’s Touch iOS browser received a major UI update and integrated an Ethereum wallet.

Privacy & Security

China implemented new rules regarding personal data collection by information apps.

The Indian government launched an antitrust investigation into WhatsApp’s privacy policy update.

An investigation revealed that Sky Bet, a leading gambling app, compiled extensive records about its users.

Apple responded to ProtonVPN’s claims regarding app rejection, clarifying its policies on bypassing geo-restrictions.

Facebook identified Chinese hackers using fake personas to target Uyghurs.

A cybersecurity review found TikTok’s privacy and security practices comparable to Facebook’s.

Avast reported that scam apps have stolen over $400 million from users.

Funding and M&A

Telegram raised over $1 billion through bond sales.

Epic Games is reportedly closing on $1 billion in new funding at a $28 billion valuation.

Twitter acquired the Reshuffle team to enhance its developer API platform.

Linktree raised $45 million to develop new social commerce tools.

Yanolja, a South Korean travel app, is exploring a dual listing with a $4 billion valuation.

ironSource is going public via a SPAC at an $11.1 billion valuation.

Ryu Games raised $2.3 million for its mobile game tournament service.

Bankly, a Nigerian fintech app, raised $2 million.

Dream Sports, the parent company of Dream11, raised $400 million at a nearly $5 billion valuation.

Public App raised $41 million, doubling its valuation.

Freetrade, a U.K. stock trading app, raised $69 million at a $366 million valuation.

Pluang, an Indonesian savings app, raised $20 million.

Blippar, an AR pioneer, secured $5 million in funding.

Downloads

Avatarify

Avatarify animates photos, bringing them to life. The app is gaining popularity and currently ranks at No. 28 on the App Store.

Vinyls

Vinyls is a minimalist music player for Apple Music subscribers, featuring a visually appealing spinning vinyl record interface.