This Week in Apps: Commission Battles, Twitter NFTs & Epic’s Appeal

The Ever-Evolving App Landscape: A Weekly Recap

Welcome to This Week in Apps, your regular source for the latest developments in the mobile world, covering operating system updates, application releases, and the broader app economy.

The app industry demonstrates continued expansion, achieving record-breaking download numbers and consumer expenditure across both the iOS and Google Play stores throughout 2021. According to recent year-end reports from App Annie, total global spending on iOS, Google Play, and third-party Android app stores in China increased by 19% in 2021, reaching $170 billion.

Growth in Downloads and Ad Spend

App downloads also experienced a 5% rise, totaling 230 billion in 2021. Furthermore, mobile advertising expenditure grew by 23% year-over-year, culminating in $295 billion.

Consumers are dedicating more time to apps than ever before, often surpassing the time spent watching television. For instance, the average American devotes 3.1 hours daily to television, but in 2021, they spent 4.1 hours on their mobile devices.

Global Mobile Usage

Usage patterns vary globally, with some markets exceeding these averages. In countries like Brazil, Indonesia, and South Korea, mobile app usage surpassed five hours per day in 2021.

Apps are not merely a source of entertainment; they can evolve into substantial businesses. In 2021, 233 apps and games generated over $100 million in consumer spending, and 13 exceeded $1 billion in revenue, as noted by App Annie. This represents a 20% increase from 2020, when 193 apps and games surpassed $100 million, and only eight exceeded $1 billion.

This Week in Apps provides a centralized resource for staying informed about this rapidly changing industry, offering news, updates, startup funding details, merger and acquisition information, and recommendations for new apps and games.

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Top Stories

Epic Games Initiates Appeal Process

Both Epic Games and Apple have appealed the initial ruling in their lawsuit, where Epic sought to demonstrate anti-competitive behavior by Apple through restrictions on alternative payment methods and app distribution outside the App Store. While Apple largely prevailed in the initial case, the judge mandated a change to allow app developers to include links to third-party purchasing options—a decision Apple contested, leading to its appeal.

Apple was also granted permission to postpone implementing the App Store changes pending the appeal’s outcome, a setback for Epic. Epic, in turn, appealed the case, seeking another opportunity to present its arguments before the court.

This week, Epic Games submitted its opening brief appealing the District Court’s decision in the Epic v. Apple case. The company argues that the District Court erred in its original assessment, reiterating claims that Apple stifles innovation, hinders competition from alternative app stores, and extracts excessive commissions with minimal investment in the App Store.

Epic also requests the appeals court to re-evaluate the market definitions used in the case. The lower court focused on the “digital mobile game transactions” market, but Epic’s brief points out that Apple’s restrictions apply to both game and non-game developers. It further contends that the court’s market definition was based on a misinterpretation of precedent.

A “Platform Fee” by Another Name?

Following a directive from the Netherlands’ regulator requiring Apple to permit dating apps on the App Store to process third-party payments, expectations of a more open ecosystem arose. However, Apple’s implementation has proven to be limited.

While Apple will comply with the legal requirement by providing entitlements to dating apps seeking to process payments independently, it will still levy a commission on those third-party transactions. Developers will also be required to publish a separate binary for their app specifically for the Netherlands App Store and will not receive the benefits of platform advantages, such as assistance with refunds, payment history, or subscription management.

Twitter Embraces NFTs

Twitter has officially integrated support for Non-Fungible Tokens (NFTs). Users of the Twitter iOS app who are also Twitter Blue subscribers will be the first to utilize a new feature allowing them to authenticate with their crypto wallet and display an NFT as their profile picture.

The new hexagon-shaped profile pictures will visually distinguish NFT enthusiasts on the platform.

To use the feature, Twitter Blue subscribers can change their profile picture as usual and select the NFT option. They then connect their crypto wallet. Currently, Coinbase Wallet, Rainbow, MetaMask, Ledger Live, Argent, and Trust Wallet are supported.

Twitter states that it currently supports JPEG and PNG NFTs minted on the Ethereum blockchain (ERC-721 or ERC-1155 tokens). Support for SVGs is planned for a future update.

The feature has received mixed reactions, with some users engaging in trolling, others blocking users with NFT profiles, and artists expressing concerns about increased art theft and unauthorized NFT minting.

Weekly News

Platforms: Apple

• Custom Subscription Codes: Apple developers can now create custom codes for subscriptions in App Store Connect, assigning unique names like SPRINGPROMO. These codes can be redeemed via direct URL or within the app.
• iOS 15.3 RC Release: Apple released the Release Candidate (RC) of iOS 15.3 to developers and beta testers, addressing a Safari bug that could have exposed users’ browsing history and Google ID. Apple has also ceased signing iOS 15.2, preventing downgrades, and is pushing iOS 14 users to upgrade to iOS 15.
• App Store Foundation Program Expansion: Apple is expanding its App Store Foundation program to 29 European countries, providing developers with support for app development, marketing, and monetization through Apple employees.
• App Store Submission Experience Update: Apple announced updates to the App Store submission process starting January 25, 2022, allowing developers to submit multiple items, bypass the need for new app versions, and view past submissions.

Platforms: Google

Google Play Games for PC Beta: The downloadable app bringing Android games to Windows PCs has entered beta testing in Hong Kong, South Korea, and Taiwan. Initial titles include “Mobile Legends: Bang Bang,” “Summoners War,” and “State of Survival: The Joker Collaboration.”

E-commerce/Food Delivery

• TikTok’s Impact on Retail: TikTok is driving sales for toy retailer Learning Express, with online sales increasing 25% in 2021. The retailer attributes this growth to organic discovery on TikTok, as children find products through viral videos.
• Shift to Grocery Delivery: Research indicates a potential shift from food delivery apps to grocery delivery services, with grocery delivery app downloads increasing 20% in December.

Fintech

• Revolut Expands to U.S. Stock Trading: British digital banking app Revolut now offers U.S. stock trading to its users, providing access to over 1,100 securities.
• Acorns Merger Terminated: Investing app Acorns canceled its $2.2 billion merger with SPAC Pioneer Merger Corp, opting for a private capital raise at a higher valuation.

Social

• TikTok Marketing Executive Fired: TikTok’s marketing chief, Nick Tran, was terminated after launching marketing initiatives without approval, including TikTok Kitchen and NFT-related ventures.
• Paid Creator Subscriptions: Instagram and TikTok are testing paid creator subscriptions, offering exclusive content and benefits to subscribers.
• Instagram Remix Expansion: Instagram expanded its “remix” feature, allowing anyone to remix public videos unless creators opt out.
• Snapchat Safety Measures: Snapchat is implementing measures to combat drug sales on its platform, including restricting the visibility of 13-17-year-old users in Quick Add search results.
• Meta’s NFT Plans: Facebook and Instagram are exploring NFT integration, potentially including an NFT marketplace.

Messaging

• WhatsApp In-App Support: WhatsApp is rolling out in-app chat support as an alternative to email.
• Workplace Integration with WhatsApp: Meta’s Workplace service will integrate with WhatsApp, enabling communication with front-line employees.
• Messenger Kids Safety Features: Messenger Kids introduced new “internet safety” activities to educate young children about safe online practices.

Streaming & Entertainment

• Spotify’s Market Share: Spotify remains the leading streaming music service, but its market share has slightly decreased to 31%, while YouTube Music has seen significant growth.
• YouTube Smart Downloads: YouTube is testing “smart downloads” for its Android app, automatically downloading videos over Wi-Fi for offline viewing.

Gaming

• Netflix Gaming Expansion: Netflix added two new games to its growing lineup: Arcanium: Rise of Akhan and Krispee Street.
• Netflix Considers Game Licensing: Netflix’s COO indicated the company is open to licensing “large game IP” to expand its gaming business.
• Xbox Game Pass Growth: Xbox Game Pass has grown to 25 million subscribers.
• Wordle! Popularity Boost: The iOS version of Wordle! experienced a surge in downloads following the popularity of the web-based game.
• Mobile Action Game Spending: U.S. consumer spending on mobile action games increased by 68.9% in 2021, driven by Genshin Impact.
• TikTok Gamers: Mobile gamers who use TikTok play longer, explore more genres, and spend more money.

Productivity/Utilities

• Instapaper Updates: Read-it-later app Instapaper on iOS introduced public folders, custom app icons, and a “read now” feature for web users.

Health & Fitness

• MY2022 Security Flaws: Security flaws were discovered in the MY2022 app, mandated for use at the 2022 Olympic Games, potentially exposing user data.

Government & Policy

• Illinois Bill on App Payments: A new bill in Illinois aims to compel Apple and Google to allow alternative payment methods in their app stores.

Funding and M&A

• 💰 Lummo (formerly BukuKas) Funding: Indonesia-based Lummo raised $80 million in Series C funding.
• 💰 Carry1st Funding: African mobile games publisher Carry1st raised $20 million in Series A funding.
• 💰 INDmoney Funding: Indian startup INDmoney raised $75 million in Series D funding.
• 💰 InFlow Funding: App InFlow, focused on ADHD symptom management, raised $2.3 million in seed funding.
• 💰 Spyke Games Funding: Istanbul-based Spyke Games raised $55 million in a seed round.
• 💰 Dream Games Funding: Istanbul-based Dream Games raised $255 million in Series C funding.
• 💰 Appcues Funding: Appcues, a platform for user onboarding, raised $32.1 million in Series B funding.
• 🤝 Public.com Acquisition: Public.com acquired HyperCharts, a data visualization platform.
• 💰 Big Health Funding: Big Health, the maker of Sleepio and Daylight, raised $75 million in Series C funding.
• 🤝 Truecaller Acquisition: Truecaller acquired CallHero, a digital assistant platform.
• 🤝 Western & Southern Acquisition: Western & Southern Financial Group acquired Fabric Technologies.