This Week in Apps: Facebook, Apple, Netflix - News & Updates

The Ever-Evolving World of Mobile Apps

Welcome back to This Week in Apps, a TechCrunch series dedicated to recapping the latest developments in mobile operating systems, applications, and the broader app economy.

The app industry demonstrates continued expansion, achieving a record 218 billion downloads and $143 billion in global consumer spending during 2020. Android devices alone saw users spend an astounding 3.5 trillion minutes within apps last year. Currently, average daily mobile device usage in the U.S. stands at four hours, exceeding the 3.7 hours dedicated to live television.

Apps as Big Business

Apps are not merely a source of entertainment; they represent a significant commercial force. Companies prioritizing mobile platforms held a combined valuation of $544 billion in 2019, a figure 6.5 times greater than those without a mobile focus.

Investment in mobile companies reached $73 billion in 2020, marking a 27% year-over-year increase.

This Week in Apps provides a centralized resource for staying informed about this rapidly changing industry, offering news, updates, funding announcements, mergers and acquisitions, and recommendations for new apps and games.

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Top Stories

Google Play to Support Alternative Billing Systems in South Korea

In response to the enactment of the “anti-Google law” in South Korea, Google has announced its compliance by enabling Android app developers on Google Play to offer alternative payment systems alongside Google’s own. This legislation represents the first instance of a government mandating app stores to open up to third-party payment options—a change that could potentially impact the revenue streams of both app stores as developers seek to avoid the tech giants’ commissions.

Google stated in a blog post this week that developers in South Korea will have the ability to integrate an alternative in-app billing system in addition to Google Play’s billing system for users on mobile and tablet devices within the country.

Users will be able to select their preferred billing system during the checkout process. Google indicated that detailed instructions for developers on implementing these third-party billing systems will be provided in the coming weeks.

The situation in South Korea serves as a potential indicator of how Apple and Google will respond if other countries require changes to their app store practices to foster greater competition. Apple maintains that its current policies already align with the law’s stipulations and has not yet implemented any modifications.

Facebook Circumvents Apple’s Fees with Creator Subscriptions

Facebook is directly challenging Apple by finding ways to avoid App Store fees. The social network this week introduced a new feature allowing creators to share custom subscription links, providing a means to collect direct payments from fans and monetize their work.

When a fan subscribes through the link, the creator retains all funds, excluding taxes. Because these links reside on the web, these subscriptions bypass Apple’s in-app payment system—potentially violating App Store policies.

Facebook believes these links are compliant because the creators, not Facebook itself, are generating the revenue. Furthermore, the company is not removing the option for users to subscribe through the native in-app payment system.

This approach aligns with the recent ruling in the Epic Games lawsuit, where the court determined that Apple cannot prevent developers from including links to alternative payment systems within their apps alongside Apple’s own. Apple is currently seeking a stay of the enforcement deadline for this ruling, as the case is under appeal by both parties.

Facebook’s strategy mirrors that of Clubhouse, which previously launched a similar payment feature enabling users to virtually tip their favorite creators. Apple did not intervene because creators retained all revenue (minus card processing fees).

However, Facebook could potentially find ways to capture a portion of this subscription revenue in the future—either through a percentage of the payment or via processing fees with Novi, or both. Novi, Facebook’s digital wallet platform, currently supports limited cross-border payments between the U.S. and Guatemala and has faced criticism for not meeting its initial crypto ambitions. Novi’s long-term goal is to offer lower fees than traditional credit and debit cards. Facebook could integrate Novi for creator payments, but first needs to establish a payment flow without being blocked by Apple. (Facebook has stated it will not collect any fees through 2023.)

Facebook and Apple have publicly criticized each other’s business models, with Facebook accusing Apple of using privacy changes to benefit its own advertising business. CEO Mark Zuckerberg emphasized that Facebook believes Apple’s commissions hinder creators, stating, “As we build for the metaverse, we’re focused on unlocking opportunities for creators to make money from their work,” Zuckerberg wrote in a Facebook post. “The 30% fees that Apple takes on transactions make it harder to do that, so we’re updating our Subscriptions product so now creators can earn more.”

Apple Defends Against Sideloading

Craig Federighi, Apple’s head of software engineering, delivered a keynote address at the Web Summit 2021 conference this week, voicing opposition to “sideloading” apps—installing apps outside of Apple’s App Store. This speech came in response to the EU’s draft legislation proposing that Apple open the iPhone to third-party app stores.

Federighi argued that sideloading would compromise user privacy and security, and that Apple’s App Store’s vetting process provides superior protection.

“Instead of creating choice, it would open up a Pandora’s box of unreviewed malware-ridden software and deny everyone the option of iPhone’s secure approach,” he said. He characterized apps installed from the web as “a cybercriminal’s best friend,” warning of compromised devices becoming networks and malware threatening critical infrastructure.

Apple’s concerns regarding security are partially valid. Allowing downloads from the web could weaken current iPhone security measures. However, Android already permits sideloading without causing widespread systemic failures. A key distinction is that Apple conflates third-party app stores with direct downloads from websites. A competitive app store would be incentivized to maintain a secure marketplace to attract and retain users, unlike a random app hosted on an unknown website.

Apple’s primary concern isn’t security—most Android users don’t sideload—but rather its reputation and business model. Diverting downloads to stores like the Epic Games Store or a Facebook Game Store would significantly reduce Apple’s revenue. Furthermore, any discovered malware from sideloaded apps would damage Apple’s image and erode its security advantage over Android.

This isn’t the first time Apple has publicly opposed sideloading. CEO Tim Cook expressed similar sentiments in June. Apple also recently published a 31-page document detailing its position.

Weekly News

Platforms: Apple

• TestFlight is now available on the Mac App Store, allowing developers to test apps across all Apple platforms, not just mobile devices.
• An Apple job posting referenced “homeOS”—a yet-to-be-public operating system—as a platform for Apple Music, potentially indicating a rebrand for the HomePod, which currently runs a modified version of iOS.

Platforms: Google

User voting for the Google Play Best of 2021 opened globally this week. Until November 17, Google Play users can vote for their favorite apps and games of the year. The winners of the Users’ Choice awards and Google Play’s editorial team’s selections will be announced on November 30.

E-commerce & Food Delivery

• DoorDash launched SafeDash, an in-app safety kit offering drivers in larger markets the ability to contact an ADT agent if they feel unsafe, with escalation to 911 if unresponsive. However, Dashers are advocating for greater protection, including control over delivery areas and protection from penalties for prioritizing safety.

Fintech

Square’s Cash App opened to teens (13-17) with parental oversight, offering custom Cash Cards and access to P2P payments, ATM access, and direct deposit. Restrictions apply, including spending limits and ineligibility for features like borrowing, check deposits, international payments, and cryptocurrency/stock investing.

Square reported disappointing Q3 earnings due to a decline in Bitcoin revenue from Cash App, sending shares down. Bitcoin revenue rose 11% YoY to $1.81 billion, lower than the previous quarter’s $2.72 billion and the 200% growth in Q2. Total revenue increased 27% YoY to $3.84 billion, with EPS of 37 cents.

The top five crypto apps—PayPal, Binance, Crypto.com, MetaMask, and Coinbase—saw a combined 46 million installs in Q3, according to App Annie.

Social

• Instagram restored Twitter Card previews, allowing users to see a small photo when tweeting an Instagram link, ending a 12-year dispute.
• Twitter introduced Spaces access without a Twitter account, updated its API, and more.
• Pinterest reported strong Q3 earnings, with revenue of $633 million, adjusted EPS of 28 cents, and ARPU of $1.41. However, monthly active users declined for the second consecutive quarter, falling to 444 million.
• ByteDance founder Zhang Yiming stepped down as chairman, replaced by CEO Liang Rubo. Shouzi Chew also stepped down as CFO as part of a restructuring into six business units.
• Instagram launched the “Add Yours” sticker in Stories, enabling users to create collaborative threads.
• Snap partnered with NBCU for access to audio clips for Snaps.
• Facebook Groups received a major update, including personalization features, subgroups, paid subgroups, chat, and revenue-generating tools.

Photos

• The founders of Phhhoto filed an antitrust lawsuit against Facebook, alleging that Facebook execs downloaded their app and discussed a potential acquisition that never materialized. The suit claims Facebook launched a clone of Phhhoto’s features and suppressed its content within Instagram.

Messaging

• WhatsApp began beta testing a cloud-based version of its Business API, hosted on Facebook’s infrastructure, reducing setup time from weeks to minutes.

Dating

• Match Group detailed plans for a dating “metaverse” and Tinder’s virtual goods economy, despite weaker-than-expected Q3 earnings.
• Tinder is bringing back Swipe Night, a whodunit-style murder mystery launching November 7.

Streaming & Entertainment

• HBO Max was the most downloaded streaming app in the U.S. in 2021, with 38 million installs, followed by Disney+ (29 million), Netflix (28 million), Tubi (22.7 million), and Hulu (22.6 million).
• Spotify partnered with Peloton for curated playlists, offering a quiz to match users with instructors.
• Clubhouse added 13 new languages, expanding its global reach.

Gaming

Netflix released its mobile game lineup globally on Android, including “Stranger Things” games and casual titles.

Niantic’s “Harry Potter: Wizards Unite” is shutting down, having generated $39.4 million in consumer spend.

Nintendo is discontinuing Dr. Mario World for iOS, following previous closures of Miitomo, Pokémon Duel, and Pokémon Rumble Rush.

Rec Room, a Roblox rival, now has over 1 million monthly active users on VR, experiencing 400% YoY growth.

Epic Games is shutting down Fortnite in China amid regulatory crackdowns.

Roblox’s three-day outage over Halloween benefited other gaming apps, with Minecraft and Among Us seeing usage increases.

The Backbone One iPhone controller updated its companion app, adding features like smart recording and improved video quality.

Travel & Transportation

• Uber reported a 72% YoY revenue increase to $4.8 billion, and its first-ever adjusted EBITDA profit of $8 million.

Health & Fitness

• Peloton attributed “targeting headwinds” to Apple’s privacy changes, impacting its business and leading to a revised revenue forecast.

Government & Policy

• Apple is fighting a $1.3 billion antitrust penalty in France, related to anti-competitive agreements with iPad and Mac wholesalers.

Funding and M&A

📈 South Korean mobile payments app Kakao Pay more than doubled in its IPO, increasing over 150% in early trading and raising 1.53 trillion won ($1.3 billion).

💰 Philippine fintech Mynt raised $300 million in a round led by Warburg Pincus and Insight Partners, valuing the business at over $2 billion.

💰 Mumbai-based neobank Fi raised $50 million led by B Capital, valuing its business at $315 million.

💰 African cross-border payments app Chipper Cash raised $150 million in a Series C extension round led by FTX.

💰 iOS product design tool Play raised $9.1 million in seed funding led by First Round Capital.

💰 Shift-worker app When I Work raised $200 million in a growth round led by Bain Capital Tech Opportunities.

Downloads

Zynga’s FarmVille 3

Twelve years after its Facebook debut, Zynga launched FarmVille 3 on iOS, Android, and Mac M1 desktops. The reimagined mobile game evolves FarmVille into a “metaverse,” allowing players to harvest crops, nurture animals, and participate in activities like hot air balloon rides and pig races.

“From the very first time I thought of FarmVille, I thought that could be the beginning of the metaverse where you could start with a square plot of dirt and build that into a persistent connected world,” said Zynga founder Mark Pincus. The game aims to generate $100 million in annual revenue over the next five years.

Firefox Mobile (update)

Firefox released an update for iOS and Android, addressing common issues like tab clutter and session restoration. The update introduces a new homepage serving as a re-entry point to the mobile web, featuring a “Jump back in” section for recent research, saved searches, and archived tabs.