Mike Peterson
U.S. Justice Department lawyers are reportedly "scrutinizing" Apple platform rules that require developers to use its payment system for purchases.
In July 2019, the U.S. Department of Justice launched a probe examining major tech giants like Apple and Google. For Apple, the investigation centered on its App Store and developer policies.
As recently as mid-June, lawyers from the department have met with developers and are inquiring about Apple's specific policies surrounding in-app purchases, Bloomberg reported Friday.
Developers who have spoke with the DoJ were apparently asked about whether Apple's 15% to 30% cut of in-app purchases was too high. At least one said that the scrutiny should be aimed more at the fact that Apple doesn't allow alternative payment systems.
The Justice Department is interviewing both large and small developers, including David Heinemeier Hansson, the founder of Basecamp.
Heinemeier Hansson recently made headlines when he complained that Apple was blocking updates and threatening to remove the Hey email app because of its lack of in-app subscription options for new customers.
Apple eventually approved several new updates to the Hey app after it implemented an open and free tier to users. Apple SVP Phil Schiller has maintained that no changes to App Store policy are coming after the dispute, though a new dispute process that allows developers to challenge specific guidelines rolled out at WWDC.
The Justice Department has been interviewing developers since mid-2019, though the inquiry is said to be "continuing" and no final decisions have been made. "Most" of the investigation's resources are aimed at Google's advertising business, however.
Apple has been under increasing antitrust scrutiny since 2019 for some of its app ecosystem policies. In a recent interview, Rep. David Cicilline, the House antitrust committee head, called Apple's App Store fees "highway robbery."
On Wednesday, the Justice Department and a coalition of state attorneys general were also said to be planning another antitrust investigation into Apple's policies. Apple has also faced antitrust probes in Europe.
Charles Martin
Malcolm Owen
Andrew O'Hara
William Gallagher
30 Comments
Effectively it’s a question whether Apple can approve apps for their own store, if they are in any way compelled to approve an app. Or if they are permitted to knowingly weaken device protections by allowing unlimited side loading. (I.e 3rd party app stores.)
Side issue: if apps can run their own transactions, then Apple might need to be charging them rent for existing in the store, and similarly those apps must report their earnings - I.e no single flat fee for appearing in the store, rather their rent is based upon their earnings. (This approach would be most similar to how retail leases work.)
Will they also sue Walmart and Whole Food.
well, they might sue Whole Food first, after all it own by Jeff.
Better set their sights on Costco too while they're at it.
Whole lawyer profession needs to be regulated what they can and not do and charge for services. When someone can't do STEM or other field that requires hard study, they become lawyer. Most members of US congress and senate are lawyers by profession. No wonder we can't get things done right in Washington.