Welcome back to This Week in Apps, the weekly TechCrunch series that provides a recap of the latest developments in mobile operating systems, mobile applications, and the overall app economy.

The app industry continues to thrive, with a record 204 billion downloads and $120 billion in global consumer spending reported in 2019. Consumer expenditure also reached a high of $112 billion across iOS and Android platforms alone.

Excluding app stores based in China, iOS and Android users downloaded 130 billion apps in 2020. The amount of time spent using apps increased by 25% year-over-year on Android, largely due to the impact of COVID-19.

Apps are not merely a source of entertainment—they represent a significant business opportunity. In 2019, companies prioritizing mobile technology had a valuation of $544 billion, which is 6.5 times greater than those without a mobile focus.

Top Stories

Social media platforms suspend Trump accounts after Capitol unrest

Social applications were compelled to swiftly determine the appropriate boundaries for allowing Donald Trump to continue utilizing their platforms this week, following his unsubstantiated claims of a fraudulent election which incited his supporters to storm the U.S. Capitol on Wednesday. This resulted in property damage, the theft of at least one computer, potential access to other unlocked computers, and widespread chaos that tragically led to five deaths, including a Capitol Police officer who later succumbed to injuries sustained while on duty.

However, social platforms also bear some responsibility for enabling the emergence of these dangerous and radicalized groups in the first place. For instance, Facebook permitted StoptheSteal and Secession groups to organize through its platform. It also delayed addressing QAnon groups for years, and even after initiating efforts to remove them, the process remains incomplete—these disinformation networks are still active on the platform today. Even limited actions aimed at mitigating the consequences of a platform that prioritized advertising revenue over user safety prompted some Trump supporters to migrate to alternative social networks favored by the far-right, such as Gab and Parler, where they could share increasingly violent rhetoric without facing repercussions.

In the wake of the riot, Facebook CEO Mark Zuckerberg announced that Trump would be banned from both Facebook and Instagram for a period of two weeks. Twitter initially suspended Trump’s account on Wednesday, then reinstated him after he deleted several tweets, while noting that any further violations would result in permanent suspension. On Friday, Twitter permanently banned Trump and his close associates.

Both platforms also removed a video released by Trump in which he expressed support for the rioters, urging them to return home while simultaneously stating, “we love you, you’re very special.”

TikTok, although not directly used by Trump, removed re-shares of his video but allowed counter-speech and posts from news organizations. It also proactively blocked hashtags used by the rioters. Snapchat suspended Trump’s account, and Twitch disabled it until the end of his term.

New social applications and startups incorporating social features often emulate the established approaches of larger platforms when developing their own content policies. However, human rights organizations contend that these measures are insufficient.

Activist group Color of Change stated this week, “Mark Zuckerberg does not deserve praise for taking action at the eleventh hour, after years of harm have already been inflicted. Facebook is undeniably complicit in the violent insurrection on Capitol Hill yesterday, and in the ongoing erosion of our democracy that has unfolded in plain sight.”

The group is advocating for a permanent ban of Trump from Facebook and for the network to “take action against his enablers and allies who continue to use the platform to incite violence and disseminate dangerous misinformation.”

App stores respond to Parler

On Friday, Buzzfeed News reported that Parler received a letter from Apple stating it had 24 hours to develop a moderation plan for the app, or it would be removed from the App Store. Google Play also banned the app on Friday until the company could commit to a moderation and enforcement policy to address objectionable content on its network.

Google’s statement reads as follows:

Parler had become a gathering place for Trump supporters and other extremists to organize plans to storm the Capitol this week, as well as to plan future attacks. Posts on Parler, which has a more lenient moderation policy compared to Twitter, frequently called for violence and even civil war.

Several prominent conservatives, including members of Trump’s family, had been actively participating on Parler, following increased enforcement of various policies against election misinformation and false claims about COVID-19, among other issues, on mainstream social platforms.

It is not uncommon for Apple and Google to take action against apps containing harmful content, although one might question why a violent insurrection aimed at undermining U.S. democratic processes was required to prompt such action.

U.S. restricts transactions with Chinese payment apps

Prior to the events at the Capitol this week, the Trump administration continued its crackdown on Chinese mobile applications. Through an executive order signed on Tuesday, the U.S. prohibited transactions with eight Chinese mobile apps, including Ant Group’s Alipay mobile payment app, as initially reported by Reuters.

Other apps named in the order include CamScanner, SHAREit, Tencent QQ, VMate (published by Alibaba Group subsidiary UCWeb), and Beijing Kingsoft Office Software’s WPS Office.

The intention of this move is to prevent China from accessing U.S. user data, including, as stated in the order, the ability to “track the locations of federal employees and contractors” and “compile dossiers of personal information.”

The administration had previously banned TikTok and WeChat, but U.S. courts blocked these orders from taking effect.

FTC reaches settlement with Tapjoy regarding deceptive practices, but points to app store gatekeepers

Mobile advertising company Tapjoy settled with the U.S. Federal Trade Commission over allegations that it misled consumers regarding the in-app rewards they could earn in mobile games. The FTC stated that Tapjoy deceived consumers who participated in various activities—such as purchasing a product, signing up for a free trial, providing personal information like an email address, or completing a survey—in exchange for in-game virtual currency. However, when it came time to fulfill these rewards, Tapjoy’s partners often failed to deliver.

The order now requires Tapjoy to follow up on complaints and monitor to ensure that offers are honored, or face further fines of up to $43,280 per violation.

Tapjoy functions as an intermediary between developers, consumers, and advertisers, and is one of many “offerwall”-based mobile ad networks currently available.

Mobile game developers integrate Tapjoy’s technology to display advertisements—also known as “offers”—to their users, in order to generate revenue from user activity. When a consumer completes the offer by taking the required action, they are supposed to receive in-game coins or other virtual currency. The app developers then earn a percentage of that ad revenue. However, the FTC found that this often did not occur, and Tapjoy disregarded hundreds of thousands of consumer complaints.

Although Tapjoy was the entity held accountable in the FTC’s ruling, the Commissioners strongly criticized the “rent-seeking” app store business model for allowing networks like Tapjoy to flourish. Using language that strongly suggested regulation of the app stores was forthcoming, the Commissioners rebuked the app stores’ “substantial power to impose taxes and regulations on the mobile gaming industry.”

“This market structure also has cascading effects on gamers and consumers,” the ruling stated. “Under heavy taxation by Apple and Google, developers have been forced to adopt alternative monetization models that rely on surveillance, manipulation, and other harmful practices,” it said.

Apple has recently received considerable recognition for its privacy initiatives, with the launch of its so-called app store “nutrition labels” that help to highlight problematic actors in the mobile app market. However, some recent reporting fails to explain why these alternative business models emerged in the first place or detail how Apple will financially benefit from the shift to subscriptions that will result from the mobile ad clampdown. It is also rarely noted that Apple itself engages in behavioral advertising within its own apps, based on the user data it collects from across its catalog of first-party apps and services. This is not to say that Apple is not providing a valuable service with its privacy push, but it is a complex issue. This is not a competition where one must choose a side.

The FTC then subtly warned Apple and Google that it “will need to utilize all of its tools—competition, consumer protection, and data protection—to combat intermediary misconduct, including by the largest gaming gatekeepers.”

Weekly News

Platforms: Apple & Google

• Google states it will add privacy labels to its apps either this week or next, following a report claiming it hadn’t updated its apps since Apple’s new labeling requirements.
• The iOS 14.4 beta indicates guided audio walking workouts are in development for Apple Watch.

Services

• Quibi is making a return, in a sense. The content catalog from the defunct mobile streaming app has been acquired by Roku, which will stream it for free on The Roku Channel this year, including through the Roku Channel app.

Gaming

Mobile games accounted for 58% of the total gaming market in 2020, an increase of 10% year-over-year, according to SuperData’s annual report. They also generated the majority of the revenue, at $73.8 billion, compared with $33.1 billion for PC games and $19.7 billion for console games. Mobile games were also featured in eight out of ten of the top free-to-play titles, led by Honor of Kings.

Augmented Reality

• Tile is preparing to compete with Apple’s forthcoming AirTags with a new tracker powered by ultra-wideband technology and will incorporate AR-finding capabilities into its mobile app.

• TikTok launched its first AR effect leveraging the LiDAR Scanner in iPhone 12 Pro and Pro Max. The effect debuted for New Year’s and features a dropping ball, similar to the one in Times Square, that explodes with confetti. Thanks to the LiDAR Scanner’s technology, the confetti appears to fall realistically onto the furniture in the room.

Social & Photos

• WhatsApp is notifying users that they must agree to the new privacy policy by February 8, or they will be unable to use the app. The agreement requires users to share their data with Facebook—a move that has led to increased downloads for private messaging app Signal.
• WhatsApp is developing multi-device support, according to references found in its 2.21.1.1 beta on Android.
• Facebook reminded businesses that they must comply with App Tracking Transparency in iOS 14, according to a recent email it sent them. The email stated that this change will negatively impact “the industry and the ability for businesses of all sizes to market themselves efficiently.”

Health & Fitness

• Singapore confirmed that its police can obtain COVID-19 tracing data to assist in criminal investigations via the TraceTogether app, used by more than 4.2 million residents.

Deadpool

• Alibaba is shutting down its 12-year-old music streaming app Xiami, which it acquired in 2013.
• Twitter is shutting down podcast app Breaker following its acquisition.
• Microsoft will shut down Minecraft Earth AR game in June, due to the pandemic.
• BBVA is shutting down neobank Simple, which it acquired in 2014. Users will be transferred to BBVA USA, which is merging with PNC.

Trends

Global mobile app spending reached nearly $111 billion in 2020, a 30.2% increase year-over-year, according to Sensor Tower. The App Store accounted for the majority of the spending at $72.3 billion, up 30.3% from $55.5 billion in 2019.

Outside of games, Entertainment apps saw the most user spending worldwide in 2020, with $5.3 billion.

First-time installs reached a new record in 2020, with 143 billion installs across the App Store and Google Play combined.

European mobile app spending grew 31% in 2020 to reach $14.8 billion, also according to Sensor Tower, representing a 31% year-over-year increase. The App Store drove the majority of the spending at $8 billion.

Apptopia compiled data to create charts of 2020’s top downloaded apps across 20 different categories, both for U.S. and global apps. It also released top grossing charts for apps, games and “health & fitness” apps.

CNBC estimates App Store gross revenue was over $64 billion in 2020. The estimate uses the figures Apple released on Wednesday about money paid to developers to back out roughly how much revenue the App Store generated.

Apple reported that its customers spent $1.8 billion during the week of Christmas Eve through New Year’s Day. App Store customers also set a new single-day spending record on New Year’s Day by more than $540 million.

New CIRP data indicates that the iPhone 12 models accounted for 76% of new iPhone sales from October-November 2020. The iPhone 12 mini only accounted for 6% of sales, however.

Funding and M&A

Twitter acquired social podcasting app Breaker and acquired creative agency Ueno to help it design new products, including Twitter Spaces.

Cross-platform gaming company Roblox raised $520 million in a round led by Altimeter Capital and Dragoneer Investment Group ahead of its planned IPO. The new round values the business at $29.5 billion.

Perfect Corp. raised $50 million in Series C funding led by Goldman Sachs. The company develops the virtual beauty app YouCam Makeup app along with other AR makeup products, including those now embedded in Google Search.

Local news app News Break raised $115 million in a round led by Francisco Partners. IDG also participated. The Mountain View-based company has roots in China, where founder Jeff Zheng previously led Yahoo Labs in Beijing, and has team members in Shanghai. But the majority are located in the U.S.

• Quantum Metric raised $200 million for its platform that helps companies improve their website and apps with real-time feedback from end users. It captures data at the session level, which can then be played back to see how customers interacted with the site or app.
• (IPO) Poshmark plans to price its IPO between $35 and $39 per share, potentially valuing the business at $3 billion.
• Indonesian robo-advisor app Bibit raised $30 million in a round led by Sequoia Capital India.
• AR gaming company Niantic acquired competitive gaming platform Mayhem for an undisclosed price. Mayhem had participated in YC’s winter 2018 batch before raising $5.7 million for its league and tournament organization platform.
• Fortnite maker Epic Games acquired Rad Game Tools, the maker of game development tools. The companies had worked together, as Epic had used Rad Game Tools’ compression tech to speed the load time for Fortnite.
• Indian social network ShareChat is reportedly raising funds from Google and Snap.

Downloads

Overviewer

New app Overviewer, reviewed here by 9to5Mac, transforms an iOS device into a document camera for sharing content on video conferencing apps, like Zoom. The app is a useful companion for teachers conducting virtual learning as well as businesses. The app was created by Dark Noise app developer Charlie Chapman.

Textcraft

Looking for an easier way to insert the clapping hands emoji into your online posts, type text as bubbled letters, type in aLtErNaTe cAsE, in hashtags, in superscript or anything else? The new Textcraft app can help. The app allows you to type in the text then copy and paste or share any one of its over 50 text transformations. The app is well-designed with support for dark mode, drag-and-drop on iPad, and other macOS design guidelines when used across platforms.

According to a tween who reviewed the app for me: “This is cool. I want it.” They then ignored me as they played with it. I believe that’s a positive sign. (Paid download of $6.99 on iOS, iPad and Mac).

Discovery+

If you’ve exhausted your streaming options during the pandemic, there’s a new choice available. Discovery+ launched this week, bringing Discovery’s networks—HGTV, Food Network, TLC, ID, OWN, Travel Channel, Discovery Channel and Animal Planet—to a $5 per month subscription video on demand service. (Or $7 if you prefer an ad-free experience.)

The app also includes some non-Discovery content, like nature documentaries from the BBC and programming from A&E, The History Channel and Lifetime.

If home renovation, travel and reality TV are your preferred forms of escapism, this could be the app for you.

Wellnest

It’s been a stressful week. Perhaps it’s time for some self-care? Guided journaling app Wellnest is helping users prioritize their mental health using game design techniques. The app offers in-depth question sets, daily prompts, mood check-ins, speech-to-text functionality, insights and more, all wrapped up in a colorful and simple package. The app is a free download, then $24 per year or $5 per month for full access.