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

The mobile app sector continues to thrive, having experienced a record-breaking 204 billion downloads and $120 billion in global consumer expenditure in 2019. Excluding app stores operating within China, iOS and Android platforms saw 130 billion app downloads in 2020. Consumer spending also reached an unprecedented $112 billion across iOS and Android during the same period. 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 impact of COVID-19.

Apps are not merely a source of entertainment; they represent a significant commercial opportunity. Companies prioritizing a mobile-first approach achieved a combined valuation of $544 billion in 2019, which is 6.5 times greater than those without such a focus.

Top Stories

Apple defends its consumer privacy moves

Apple Senior Vice President Craig Federighi addressed European lawmakers this week, defending the company’s privacy initiatives and characterizing criticism of upcoming app tracking changes as “outlandish” and “false.” He asserted that online tracking poses the most substantial threat to privacy and that Apple’s forthcoming App Tracking Transparency (ATT) feature serves as a primary defense mechanism.

“The extensive centralization of data introduces privacy risks—regardless of who is collecting it or their intentions,” Federighi stated, reinforcing Apple’s commitment to minimizing the data it holds on its customers.

This position aligns with the company’s previous statements, though it may not represent the complete picture. Apple has consistently presented its decision to allow users to opt-out of tracking as solely motivated by consumer privacy. This framing positions Apple as a protector of consumer interests and a champion of privacy. However, these changes also demonstrate Apple’s utilization of its platform influence, potentially in a manner that could be considered anticompetitive, to secure a position within the multi-billion dollar advertising market currently led by Google and Facebook.

Specifically, Apple is integrating itself into the mobile advertising landscape by transitioning from IDFA to its own SKAdNetwork, which restricts the granular data available to advertisers. This benefits consumers who prefer not to be targeted and tracked based on their app usage. However, publishers have expressed concerns that reduced tracking options may lead to lower advertising revenue. This could negatively impact ad-supported businesses beyond the major technology companies like Facebook.

Simultaneously, Apple continues to gather substantial consumer data, which it utilizes to personalize advertising experiences. Its App Store and Apple News applications personalize ads unless users actively opt-out through their iPhone settings—a process distinct from the prominent pop-up warnings required for third-party apps. Apple maintains that its personalization practices do not constitute “tracking” because it does not share data with external parties or monitor users across websites and applications.

As Apple expands its own services offerings, the volume of data available for personalizing its advertisements continues to grow. Currently, Apple’s ad targeting system incorporates user segments based on their consumption of music, books, television shows, and apps, as well as in-app purchases and subscriptions. It also analyzes user searches within the App Store, engagement with App Store stories, and location data when permission has been granted to Apple News or the App Store.

In related developments, WhatsApp, owned by Facebook, voiced criticism regarding Apple’s upcoming privacy label requirements this week, arguing that the labels are unfair as they will not apply to Apple’s pre-installed first-party apps, such as iMessage. WhatsApp also contended that the labels do not provide sufficient detail regarding the measures companies are taking to safeguard consumer data.

Apple responded by stating that labels for its own apps will be available on its website for those apps not distributed through the App Store.

Facebook antitrust lawsuits

Attorneys general from 48 states, along with representatives from Guam and the District of Columbia, have initiated legal action against Facebook, alleging the company maintains a monopoly through unfair business practices. The states are requesting the court to prevent Facebook from making any future acquisitions exceeding $10 million without prior notification to the plaintiffs. Furthermore, they are seeking remedies such as the sale or restructuring of companies or assets that were obtained illegally.

In addition, the Federal Trade Commission (FTC) has voted to pursue its own antitrust case against Facebook at the national level.

These legal challenges have the potential to influence the app environment should the plaintiffs succeed. The lawsuits question the legality of Facebook’s acquisitions of Instagram and WhatsApp, potentially leading to their divestiture. This outcome could foster greater competition within the social app market, where Facebook currently holds a dominant position. Recently, Facebook integrated its messaging platform with Instagram, enabling users to communicate with contacts across both platforms through a single app—either Messenger or Instagram. Future integration with WhatsApp is also a possibility.

Twitter buys Squad

Twitter announced on Friday the acquisition of Squad, a social app focused on screen sharing. The co-founders of Squad, CEO Esther Crawford and CTO Ethan Sutin, along with the entire Squad team, will be joining Twitter’s design, engineering, and product divisions. Consequently, the Squad app, which relied heavily on Snap’s Snap Kit developer tools, will be discontinued.

Reports suggest Twitter may also be preparing to shut down Periscope, leading to speculation about the company’s plans for streamlining its services. Twitter has recently been experimenting with features like Stories (known as Fleets) and an audio-based networking product for group conversations.

This Week in App News

Platforms: Apple

• Reminder: Apple’s App Store Holiday shutdown is approaching. The App Store will not accept new apps or app updates from December 23-27 (Pacific Time) for its annual holiday break.
• Reminder: App privacy questions requirement begins December 8.
• The iOS 14.3 Release Candidate is available, introducing support for the new ProRAW photo format on iPhone 12 Pro and iPhone 12 Pro Max, a dedicated Apple TV+ tab for easy access to Apple’s Originals, preparation for Fitness+, and a modification to prevent the Shortcuts app from launching when using custom app icons, among other improvements.
• Apple Watch Family Setup will be available in Canada on December 14.
• Apple Fitness+ launches December 14.

Platforms: Google

Google is developing a project to enhance GPS accuracy in apps. Obtaining precise GPS readings can be challenging in dense urban environments, leading to errors in navigation and ridesharing apps. Google’s solution utilizes 3D mapping-aided corrections, combining 3D building models, raw GPS data, and machine learning. A December Pixel Feature Drop incorporates these corrections into Pixel 5 and Pixel 4a (5G), reportedly reducing wrong-side-of-street occurrences by approximately 75%. An initial version is available for other Android phones (Android 8+) through the FLP (Fused Location Provider API), reducing these errors by around 50%. A more comprehensive version will be released to the entire Android ecosystem (Android 8 or later) in early 2021.

Google Play Pass is now available in 7 additional countries, including key Latin American markets. The subscription service for apps and games has expanded to Brazil, Chile, Colombia, Mexico, Peru, Russia, and Saudi Arabia, bringing the total number of supported markets to 42.

Google’s Pixel Feature Drop introduces Adaptive Sound, Hold for Me (where Google Assistant waits on hold for you), Extreme Battery Saver Mode, screen sharing during Duo calls, and more.

Gaming

Microsoft confirms its Xbox cloud gaming service will launch on iOS in 2021. To circumvent App Store regulations, the company will deliver the service through a web browser on iPhones and iPads, bypassing Apple’s revenue-sharing model. Amazon’s Luna and Google’s Stadia are also planning to utilize the web browser approach on iOS.

Google’s cloud gaming service Stadia is rolling out YouTube live streaming, enabling gamers to share their gameplay on YouTube.

Apple is requesting the dismissal of Epic Games’ Fortnite lawsuit in Australia, citing a prior agreement by Epic to resolve disputes and litigation in the U.S. District Court for the Northern District of California.

Government and policy

• The U.S. National Weather Service experienced a record year for weather-related disasters, including the most active Atlantic hurricane season on record and California’s wildfires. The agency now reports it is facing bandwidth limitations and will need to restrict the amount of data accessible to its clients and users. This change will affect weather consumers who rely on smartphone apps for forecasts and alerts, as much of this information originates from Weather Service data.
• California’s CA Notify contact-tracing app for COVID-19 is now available statewide. The app utilizes Apple and Google’s exposure notification API.
• Cydia has filed an anti-competition lawsuit against Apple. Cydia, a third-party App Store for jailbroken devices, alleges Apple used anticompetitive practices to eliminate its rival app store. While there are instances where denying third-party app stores a presence on iOS may have been anticompetitive, Cydia’s lawsuit may not be the strongest example, as the store previously distributed pirated apps alongside legitimate ones.

Augmented reality

Instagram has partnered with museums in the U.S. and France, including the Smithsonian, Palace of Versailles, and Le Grand Palais, to offer augmented reality versions of their exhibits within its camera’s AR effects.

Snap has collaborated with the Los Angeles County Museum of Art on a multi-year augmented reality project, “LACMA x Snapchat: Monumental Perspectives.” The initiative will pair local artists selected by the museum to create site-specific monuments and murals viewable in AR through the Snapchat app.

E-commerce & food delivery

Instagram has launched shopping in Reels, its TikTok competitor. This feature is now one of several ways users can shop via video, alongside options in Feed, Stories, Live, and IGTV. Facebook Pay facilitates checkout for many sellers, allowing Instagram to generate revenue through transaction fees.

WhatsApp has added carts to simplify shopping. The Facebook-owned messaging app now allows consumers to purchase multiple items from a business and provides sellers with tools to manage orders more efficiently.

DoorDash shares increased by 92% during their trading debut, reaching a high of $195.50 after raising $3.37 billion during its IPO.

E-commerce app Wish is planning its IPO with a price range of $22-$24 per share, potentially reaching a $14 billion valuation.

Fintech

• Robinhood is reportedly losing users to China-owned Webull, according to Bloomberg. Founded by Alibaba alum Wang Anquan, Webull has increased its brokerage clients tenfold in 2020 to over 2 million by offering commission-free stock trades. Robinhood currently has 13 million users. Webull is expected to seek funding from U.S. investors and expand into roboadvisor services.

Travel

Vacation rental app Airbnb began trading on public markets this week. After adjusting its price range, the company opened at $146 per share on Thursday, more than double its $68 IPO price and valuing the company at over $100 billion. The stock closed at nearly $145.

China’s Cyberspace Administration of China (CAC) announced a ban on 105 mobile apps for violating Chinese regulations. The majority of the apps were developed by Chinese companies, but the U.S.-based travel booking and review site Tripadvisor was also included on the list, causing its shares to decline. Tripadvisor partners with Nasdaq-listed Chinese travel firm Trip.com (formerly Ctrip).

Social & Photos

Snap and Twitter have collaborated to enable users to share their tweets on Snapchat through a native integration instead of taking screenshots. When Twitter users logged into Snapchat share a tweet using the Snapchat icon from the share sheet in Twitter, they can share, react or comment on the post, then send it to a Snapchat friend or post to their Story. The feature is currently live on iOS, with an Android version in development.

Triller claims it can reach 250 million users through partnerships with Samsung and others. The app, which hosted a Pay Per View boxing match between Mike Tyson and Roy Jones Jr. this year, is planning additional events for 2021, including a concert with K-pop group Blackpink.

A second federal judge has ruled against the Trump administration’s TikTok ban, stating that the government “likely exceeded IEEPA’s [the International Emergency Economic Powers Act] express limitations as part of an agency action that was arbitrary and capricious.”

Instagram has partnered with lyrics site Genius for the first time on “Lyric Reels,” a feature similar to Spotify’s “Behind the Lyrics.” This addition will allow artists to explain the meaning and context of their song lyrics. Participants include Megan Thee Stallion​, 24kGoldn and ​Tate McRae.

Tinder is making it easier to report problematic users who use “unmatch” to avoid accountability. Rival Bumble recently implemented a similar feature. However, Tinder’s implementation focuses on improving access to help documentation, while Bumble included a button for reporting users who have already unmatched you.

Google’s Photos can now synchronize your “Liked” images with Apple’s Photos service on iOS.

Streaming & entertainment

• Netflix’s StreamFest, a free trial weekend in India, resulted in a 200% week-over-week increase in installs, reaching approximately 3.6 million global installs, according to Sensor Tower.
• Stitcher, recently acquired by SiriusXM, has revamped its app for the first time in years. The new version features a dedicated “My Podcasts” tab, improved search filters, result sorting, user-curated show groups, and more.
• HBO Max is the fastest-growing SVOD service in the U.S. According to Apptopia, the app reached a lifetime high for daily downloads three days after its debut, at 225,000. Since its May launch, DAUs have grown 242%.
• Spotify had to reset an undisclosed number of user passwords after a software vulnerability exposed private account information to its business partners, including email addresses, preferred display names, passwords, gender, and dates of birth.

Health & fitness

• Nike Run Club app now includes widgets for iOS 14+ home screens. These widgets can display your Run Level, post-run progress, and provide quick access to start your next run.

Productivity

• Google Drive users on iOS and Android can now view and rerun desktop and mobile searches, select intelligent suggestions for people, past searches, keywords, and recently accessed files.

Funding and M&A

Meditation app Calm has raised an additional $75 million at a $2 billion valuation, in a round led by existing investor Lightspeed Venture Partners.

Twitter has acquired video app Squad. (see above) 

AI financial assistant Cleo has raised $44 million in a Series B round, led by EQT Ventures. The app and chatbot, targeted at Gen Z, connects to bank accounts to provide proactive advice and timely notifications.

Mexican challenger banking app albo has raised $45 million to expand its lending and insurance products.

Sweden’s MTG has acquired mobile racing game studio Hutch Games, based in London, for up to $375 million. The studio produces titles like Rebel Racing, F1 Manager, and Top Drives.

• Seattle’s Freespira has raised $10 million for its therapeutic device for panic attacks and PTSD, which works with a connected app and proprietary software.
• Banking app for teens GoHenry has raised $40 million to expand its business in the U.S. and U.K.
• Retail loyalty app Fetch Rewards has raised $80 million in a Series C round led by Iconiq Growth. The app offers rewards to users who scan their receipts after shopping.
• Pear Therapeutics has raised $80 million in a round led by SoftBank’s Vision Fund 2. The company develops prescription apps for treating substance use disorders, schizophrenia, and multiple sclerosis. The FDA has already approved its treatments for substance abuse, opioid use, and insomnia.
• Reface has raised $5.5 million in seed funding led by a16z for its viral face-swapping video app.

Downloads

Google Health Studies

Google has introduced an alternative to Apple’s Research app for Android users. The new Google Health Studies app will collaborate with leading research institutions, connecting study participants through the app. The initial study focuses on respiratory illnesses, including the flu and COVID-19, and utilizes federated learning and analytics—a privacy technology that keeps a person’s data stored on the device.

Google Look to Speak

Google has launched an accessibility-focused app, Look to Speak, that allows individuals to use their eyes to select pre-written phrases for their phone to vocalize. Users look left, right, or up to choose what they want to say from the phrase list and navigate the app. Look to Speak can also be customized by allowing users to edit the words and phrases they want to say and adjust the gaze settings to their needs.

Retro Widget

Looking for a retro gaming experience on your home screen? The updated Retro Widget 2 ($1.99) brings the classic Snake II game from old Nokia handsets to the iPhone’s home screen. The app includes five mazes and nine levels and allows you to play Snake II using the 1, 3, 7, and 9 keys.

Barter

Barter is an app designed exclusively for app developers. Created by the developer of HomePass and HomeCam, Barter provides a way for app developers to view their app sales in a widget on iOS 14+ devices. The app does not include any analytics or tracking beyond what Apple provides to protect developer data. The developer plans to expand the app to display additional metrics such as downloaded units and product-specific data. The current version was a minimum viable product to determine if Apple would approve it for the App Store, which it did, and will soon be upgraded.