Welcome to This Week in Apps, TechCrunch’s regular series providing the latest updates on mobile operating systems, applications, and the app economy as a whole.

The mobile app sector continues to thrive, achieving a remarkable 204 billion downloads and $120 billion in global consumer spending in 2019. Excluding app stores in China, iOS and Android users downloaded 130 billion apps in 2020. Consumer expenditure also reached a record $112 billion on these platforms alone. In 2019, individuals dedicated an average of three hours and 40 minutes daily to app usage, comparable to time spent watching television. The time spent within apps increased by 25% year-over-year on Android, largely influenced by the effects of COVID-19.

Apps are not merely a source of entertainment; they represent a significant commercial opportunity. Companies prioritizing mobile platforms had a collective valuation of $544 billion in 2019, which is 6.5 times greater than companies without a mobile strategy.

Top Stories

Apple Introduces App Store Privacy Information

This week, Apple implemented its announced App Store privacy information across all of its App Stores, encompassing iOS, iPadOS, macOS, watchOS, and tvOS. These labels are designed to provide Apple customers with a clearer understanding of the types of information apps collect, categorized into three areas: data used for tracking, data associated with your identity, and data not linked to your identity. Apple clarifies that tracking involves connecting user or device data from an app with data gathered from other apps, websites, or even offline sources—such as data compiled from retail purchases—for the purpose of targeted advertising or ad performance measurement. This can also involve sharing user or device data with data brokers.

This feature will reveal details about the industry of third-party adtech and analytics SDKs—essentially code from outside companies that developers integrate into their apps to increase revenue.

“Data linked to you” refers to personal information connected to your identity through your app account, device, or other identifying details. (Further details on the program can be found here.)

Axios analyzed how different social media and messaging apps compare based on the information provided by the labels. The analysis revealed that apps owned by Facebook collected more data than apps like Telegram, Signal, and Apple’s Messages. It also showed that Snap collected less data compared to other major social networks.

Observers also noted that Google had not yet supplied privacy label information for its primary apps, including Gmail, Google Maps, or Google Search.

Apple and Facebook Debate Privacy Updates

Also this week, Facebook published full-page advertisements in newspapers to voice concerns about Apple’s forthcoming privacy-focused changes, asserting that the decision will negatively impact small businesses. An upcoming iOS 14 update will require developers to obtain user permission before utilizing IDFA identifiers for ad targeting, and they will have limited space to explain the necessity. Many users, frustrated with the collection and resale of their data without control, will likely decline permission.

Facebook has significant stakes in this matter, having previously warned that without targeting and personalization, mobile app install campaigns generate 50% less revenue for publishers. The impact on Facebook Audience Network on iOS will be even more substantial. However, Facebook maintains that it is sufficiently diversified to withstand this change, arguing that smaller businesses run by “aspiring entrepreneurs” will be more affected.

The company also pointed out that Apple’s motivations extend beyond consumer choice. If developers earn less from traditional targeted ads, they will explore alternative revenue streams—such as in-app purchases and subscriptions, which benefit Apple.

It’s worth noting that Apple also engages in data collection and targeting. Within your iOS Privacy Settings, by navigating to the bottom of the page and selecting Apple Advertising, then View Ad Targeting Information, you can view Apple’s disclosures regarding its tracking practices across its platform, including data from your account information (age, gender, location) and content you’ve downloaded on Apple Music, Apple TV, Apple Books, and the App Store. This data is used to deliver personalized ads on the App Store, in Apple News, and in Stocks.

Apple, in turn, has characterized Facebook’s tracking practices as an effort to “collect as much data as possible” to “develop and monetize detailed profiles of their users,” with “disregard to user privacy.” While Facebook’s network spans apps and websites, Apple is implementing similar practices within its own ecosystem—comprising a billion iPhones and other devices. These devices often feature Apple’s own pre-installed apps that compete with third-party services in areas like books, music, TV, fitness, and news.

Furthermore, Apple announced with the launch of the new App Store privacy labels this week that developers are not required to disclose data collected by Apple itself. The reason for this is unclear.

Instead, developers must disclose all other methods of data collection and usage, including any involvement of data brokers.

This change represents a significant advancement for consumer privacy, establishing a new industry standard, revealing the extent of user tracking, and compelling companies to rebuild trust with customers rather than secretly collecting and selling their data. However, it also serves as a convenient distraction from Apple’s own interests, and Apple should not be exempt from scrutiny on that front, even though this is also “a very good thing.” Apple aims to increase its share of the adtech market and expand its subscription business, while also advocating for consumer privacy. However, it primarily emphasizes the latter when communicating with the media or making public statements.

Criticizing Apple for such a pro-consumer move risks appearing to defend Facebook. However, this issue is too complex to require a simple choice of sides. Apple can address consumer privacy concerns and be more transparent about its own data collection practices—and burying its data collection/ad targeting information at the bottom of the iOS Privacy settings page is not the way to do it.

Twitter Discontinues Periscope

This week, Twitter announced the closure of its standalone livestreaming application, Periscope, which the company initially acquired in 2015. The company stated that the app had reached a point of being an “unsustainable maintenance-mode state,” with usage declining while associated costs increased. The application will cease to operate by March 2021; however, Twitter clarified that it remains committed to live video functionality and has integrated many of Periscope’s primary features directly into the Twitter platform over the years.

Users will have the opportunity to download an archive containing their Periscope broadcasts and associated data prior to the app’s removal. Any broadcasts previously published to Twitter will continue to be accessible as replays.

Twitter has a track record of discontinuing standalone applications that initially appeared promising. The company ventured into the realm of music and social media integration early on with the launch of a standalone Twitter Music app in 2013. Later, other companies demonstrated the viability of this concept—TikTok, for example, reported this week that its platform is driving music chart success, resulting in record deals for approximately 70 artists. In 2020, over 176 songs exceeded 1 billion views as TikTok sounds.

Another application that Twitter discontinued was Vine, which, in retrospect, could have evolved into TikTok.

Now, Twitter is ending support for its live video application, a project it has moved away from, while other companies are exploring ways to integrate live video streams with e-commerce transactions. Currently, Facebook and Instagram provide live video shopping features, including within Instagram Reels, their competitor to TikTok. TikTok itself recently initiated its first significant test of livestreamed video shopping in collaboration with Walmart. Additional major companies investing in live video shopping include Amazon through Amazon Live, Alibaba through AliExpress, JD.com, Pinduoduo, WeChat, and Douyin, TikTok’s Chinese counterpart.

It is possible that Twitter aims to establish a unique position in the market and avoid simply following industry trends. However, its most recent major feature, Fleets (a format similar to Stories), is widely available on other platforms. Currently, Twitter is testing Spaces, a competitor to Clubhouse and other audio-networking startups.

Weekly News

Platforms: Apple

• Apple introduces App Store privacy labels.
• Apple releases macOS Big Sur version 11.1, enabling iPhone and iPad applications without resizable windows to operate in full-screen mode on Macs equipped with the M1 chip. This update will benefit applications like HBO Max and certain mobile games.
• The Mac App Store publishes a list of applications optimized for the new M1 chip.
• Apple provides guidance on designing App Clip URLs more effectively in a new blog post. It also announced that App Clip Codes—visual images encoding a URL and potentially incorporating an NFC tag—are now available for creation within App Store Connect or using the new command-line App Clip Code Generator.
• Apple launches iOS 12.5 for older devices that do not support iOS 14. This update includes COVID-19 exposure notification support and other security enhancements.
• Apple releases the public beta of iPadOS 14.4.
• Apple publishes a guide on securing Apple devices, which may be particularly helpful for individuals experiencing domestic abuse.

Platforms: Google

• Google announces that the Play Store is now accessible to more car applications, including those for navigation, parking, and charging within Android Auto.
• Google Play Store expands its availability to 22 additional countries in Africa, Oceania, and other regions.
• Google announces the shutdown of the Android Things platform, effective January 5, 2021.

Services

• Amazon’s AWS previews Amazon Location, a service enabling developers to incorporate location-based features into their web and mobile applications. Amazon Location utilizes mapping data from Esri and HERE Technologies and includes built-in tracking and geofencing capabilities, but does not include routing.

Gaming

• Game engine developer Unity partners with Snap to integrate Unity Ads into the Snap Audience Network and provide Snap Kit to game developers. Through the Unity Asset Store, developers can utilize Snap Kit’s Login Kit and Creative Kit, the latter allowing users to enhance videos with stickers or augmented reality lenses. Bitmoji avatars will be integrated with Unity in early 2021.
• Sensor Tower reports that PUBG Mobile led the list of billion-dollar mobile games in 2020. Five games surpassed $1 billion in revenue this year, including Honor of Kings, Pokémon GO, Coin Master, and Roblox.
• Amazon’s Luna cloud gaming service becomes available on Android. Similar to the iOS version, the service operates through a web browser in the U.S. and currently supports select Pixel, Samsung, and OnePlus devices, with broader device compatibility planned for the future.
• Roblox postpones its IPO to 2021, citing the strong debut performance of Airbnb and DoorDash, which potentially left money on the table, making share pricing challenging.
• A judge orders Apple to produce documentation from Tim Cook and Craig Federighi in the Epic Games/Fortnite lawsuit. These executives, along with Eddy Cue, may also be required to testify if Epic prevails. Facebook also announced its intention to support Epic’s legal battle by providing relevant materials and documents as part of the discovery process.
• Google’s cloud gaming service, Google Stadia, launches on iOS, bypassing the App Store through a web application. It functions on both iPhone and iPad (iOS 14.3 or later is required), and most games require a gamepad.

Augmented Reality

• The Unity/Snap partnership, previously mentioned, includes an AR component. Snap’s Creative Kits enable users to share gameplay footage enhanced with branded stickers or augmented reality lenses created with game branding, facilitating user acquisition through referral links back to the game.
• Facebook’s Messenger Kids app receives updates with seasonal AR effects and a feature allowing parents to simulate Santa Claus for their children.
• Google introduces an AR Baby Yoda in its Google Search app.

• Google also adds an AR-powered virtual makeup try-on feature to its Google Search app in collaboration with leading beauty brands.

Social & Photos

• Facebook launches Collab, a TikTok-like application focused on collaborative music creation. TechCrunch featured an exclusive interview about the app.
• Twitter initiates beta testing of Spaces, its voice-based social networking feature, a competitor to Clubhouse, allowing select Twitter users to participate in audio-only chat rooms on the platform.
• Discord introduces mobile screen sharing, enabling users to “hang out” and view videos or other content on their phones.
• Facebook relaunches Instagram Lite, initially testing it in India before a global rollout. The app is under 2MB in size and offers improved speed and responsiveness, but lacks features like Reels, Shopping, and IGTV.
• Dating and friend-making app Bumble confidentially files for an IPO in February 2021.
• Google Photos introduces a 3D “Cinematic” photos feature that utilizes machine learning to transform 2D photos into 3D, even without original depth information. A virtual camera then creates a smooth panning effect for a more immersive experience.
• TikTok updates its guidelines to strengthen policies regarding harassment, self-harm, violence, and dangerous acts. The platform also introduces new well-being features, including optional viewing screens to hide potentially distressing content, a text-to-voice feature for accessibility, and information about COVID-19 vaccines.
• Halide’s developer provides an in-depth analysis of Apple’s new ProRAW image format, describing it as enhancing RAW capabilities and making them more accessible. A Halide blog post suggests that ProRAW could significantly impact how both beginners and experts capture and edit photos, and references a similar analysis by photographer Austin Mann.

Streaming and entertainment

• Netflix introduces an audio-only mode on Android, allowing users to conserve bandwidth by listening to programs without video. This feature aims to appeal to users in emerging markets and could also position Netflix as an alternative to podcasts.
• Spotify becomes available on the Epic Games Store, establishing the marketplace as a potential third-party app store. Both companies are involved in disputes with Apple regarding commission structures and purchase rules.
• TikTok releases its first U.S. music report, highlighting the platform’s significant influence on the music industry. The report indicates that over 176 songs surpassed 1 billion video views as TikTok sounds, and more than 70 artists who gained prominence on TikTok have secured major label record deals, including Claire Rosinkranz, Dixie D’Amelio, Powfu, Priscilla Block, and Tai Verdes.
• TikTok launches on TVs, initially available on Samsung smart TV models in Europe, with plans for pre-installation on future Samsung models. The TV experience will feature curated, family-friendly content.
• Apple redesigns Shazam for iOS to align with Apple Music’s design language. The app is also now accessible on the web. Apple recently reported that Shazam has over 200 million monthly active users across iOS and Android.

E-commerce

Walmart partners with TikTok for a test of a new shoppable feature enabling TikTok users to make purchases directly within the app. The retailer will host a holiday shopping event on TikTok, allowing users to shop from influencer videos and continue shopping from Walmart’s TikTok profile afterward.

Shoploop, an app developed within Google’s Area 120 incubator, graduates to Google Search. The app competes with video-based shopping initiatives from Facebook, Instagram, TikTok, and others, bringing Shoploop’s short-form influencer videos to Google Shopping.

Discount e-commerce marketplace Wish experiences a decline in its stock price following its IPO debut, opening at $22.75, below its $24 per share IPO pricing. Investors may be responding to Wish’s slower growth and smaller user base compared to leading retailers like Amazon and Walmart.

App Annie predicts that U.S. Android users will spend over 1 billion hours in shopping apps in Q4 2020, a 50% year-over-year increase. Mobile sales are projected to reach $314 billion by year-end.

Security and Privacy

• New mobile malware, Goontact, targets iOS and Android users in Chinese-speaking countries, Korea, and Japan. The spyware can steal contacts, SMS messages, photos, and location information after users are directed to a website hosting the malware, which prompts them to sideload it on Android devices. On iOS, it primarily steals phone numbers and contact lists.
• Secure messaging app Signal introduces encrypted group calls on iOS and Android, supporting up to five participants.

Government and Policy

• The FTC initiates an inquiry into the privacy and data collection practices of major tech companies, including Amazon, ByteDance (TikTok’s owner), YouTube, Reddit, Snap, Discord, Twitter, and Facebook (including WhatsApp). The companies have 45 days to respond to the requests.
• An organization representing news publishers joins the Coalition for App Fairness, an advocacy group pushing for regulation of the App Store and the elimination of Apple’s commission fees.

Fintech

• Stock app Robinhood pays $65 million to settle SEC charges related to past inferior pricing execution that allegedly misled customers.

Health & Fitness

• The New York Times examines how COVID-19 health pass apps could facilitate the reopening of businesses and the restoration of the economy by enabling individuals to verify their vaccination status.
• Apple Fitness+ launches and receives positive reviews.

Funding and M&A

• Reddit acquires TikTok rival Dubsmash to support Reddit’s video strategy, integrating Dubsmash’s video creation tools directly into Reddit. Reddit had previously raised over $20 million in venture funding.
• MessageBird acquires real-time notifications and in-app messaging platform Pusher, based in London, for $35 million.
• IntellectoKids secures $3 million from Allrise Capital and others for its educational apps designed for children aged 3 to 7.
• Mobile edtech startup Aceable raises $50 million to accelerate the expansion of its service offering state-accredited classes.
• Brainly raises $80 million for its crowdsourced homework help app, now used by 350 million users.
• Tap Network, a customizable rewards program utilized by app developers like Uber, raises $4 million.
• Canadian challenger banking app Neo Financial raises $50 million CAD and expands into savings accounts.

Downloads

Canvas

Canvas is a new iPhone application from Occipital, the company behind RedLaster and 360 Panorama—applications that were innovative in their use of iPhone capabilities. Canvas utilizes the lidar scanner in the iPhone 12 Pro to create 3D scans of indoor spaces. 9to5Mac reviewed the app this week, describing the scanning process as relatively straightforward. Users stand in the center of the room and move the device up and down while rotating, as the app overlays an AR grid onto the room. The app experienced some difficulties with smaller rooms and alcoves. Upon completion of the scan, users can pay a fee to generate a professional CAD model for use in remodeling plans.

Gawq

Gawq’s newly launched news aggregator app aims to address the issues of fake news and the “echo chamber” effect created by social media algorithms and personalized feeds. The app presents news from diverse sources, allowing users to filter content by news, opinion, paid content, and more, as well as compare sources, verify facts, and assess publication accuracy.

PhotoRoom

TechCrunch’s Romain Dillet examined PhotoRoom this week, a new Android photography application that automatically removes backgrounds from photos and replaces them with others. The app, a Y Combinator alumnus, was previously available on iOS, where it competes with various photo editing applications offering similar functionality.

Soosee

Soosee operates an application that uses the iPhone camera to scan food labels for ingredients users may want to avoid—such as dietary restrictions, allergens, microplastics, or antibiotics. However, the company deserves recognition for having one of the most transparent App Store privacy labels available.

The company shared this information on Twitter in November (see below), and the label has since been updated to collect only Purchase data, categorized under “Data Not Linked to You.” Supporting applications like Soosee is encouraged.