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Developers highlight more anomalies in Apple’s 30% cut – 9to5Mac

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Apple’s 30% cut on in-app purchases continues to spark controversy, with developers iA drawing attention to more anomalies in the company’s implementation of its commission.

The iPhone maker claims that it treats all apps equally, but the reality is that Apple has developed a complex set of rules which allow it to make exceptions to suit its own needs …

Background

The exceptions began when Apple realized there were certain apps it needed on its platform, like Netflix, but the companies either couldn’t or wouldn’t agree to the Cupertino company taking a cut of their revenue. Apple thus created an exemption for something it dubbed ‘reader’ apps. These apps are allowed to sell subscriptions and content to customers outside of the app without having to offer a corresponding in-app purchase – something most developers can’t do.

We also learned in July that Amazon Prime Video pays half the usual App Store commission, in a special deal agreed between Jeff Bezos and Eddy Cue. Amazon is also allowed to sell ebooks on its own website which can be read in the Kindle app on iPhones and iPads, again under the ‘reader’ app exception.

The coronavirus crisis highlighted another interesting difference, in the way that Apple treats physical and digital products. Companies that offered say fitness classes in their own studios didn’t have to use in-app purchases, and didn’t have to pay Apple a commission. But when they were forced to switch to online classes, Apple considered those digital products and thus subject to its 30% commission.

More anomalies in Apple’s 30% cut

Developers iA – who count such companies as Nikkei, Vogue and Red Bull among their clients – have written a lengthy blog post drawing attention to further inconsistencies in Apple’s approach.

Some fall under the rather arbitrary ‘physical versus digital goods’ category. Uber, for example, doesn’t pay Apple a cut when people use the app to book rides. That might seem straightforward, yet Uber is insistent that it isn’t a taxi company, it is instead an IT company offering a service in connecting riders and drivers. Wouldn’t that mean its service is a digital product?

But a far bigger anomaly, says iA, is online advertising. This is the very definition of a digital product, and many companies – like Facebook – let people place and pay for ads through their apps. Yet Apple doesn’t take a cut.

Ads are digital goods. What else are ads? Spiritual goods? They are the digital good. They are what is driving the digital economy in the first place! And, yes, Facebook, Instagram, Twitter, and so on do have direct transactions built into the apps. And, no, they do not pay any fees to Apple for these in-app transactions […]

Apple keeps repeating that the rules are the same for all, but they are not. The top ten apps do sell digital goods and only two of the top ten apps pay Apple. 

The only reason for this exception, says iA, is the same reason Netflix and Amazon get special terms: Apple needs them. It especially needs popular ad-funded apps.

Apple needs Instagram, Amazon, Uber, and Google Maps. A more convincing reason why the top apps do not pay taxes is that Apple needs them as much as they need Apple. The iPhone without Instagram is like Instagram without iPhone. In spite of Apple’s Championship for privacy and Facebook’s championship for destroying privacy, the relationship between Instagram and Apple is a perfect symbiosis. An iPhone without YouTube? Possible, but for some exactly not as much fun. An iPhone without Facebook and Messenger? […] Apple still needs Facebook just as Facebook needs Apple.

Apple would likely justify the exception under guideline 3.1.5(a).

3.1.5(a) Goods and Services Outside of the App: If your app enables people to purchase goods or services that will be consumed outside of the app, you must use purchase methods other than in-app purchase to collect those payments, such as Apple Pay or traditional credit card entry.

But iA’s point is that Apple makes these exceptions for its own benefit. The post also tackles the oft-heard argument that developers who don’t want to pay Apple’s commission can develop for other platforms.

In spite of its tiny market share of 13%, the iPhone has economic leverage that creates a dependency for every IT company that sells physical or digital goods over the Internet. Physical, digital, advertisement—Apple holds the key to the biggest spenders.

We spend 50% more time on the phone than on desktop. Mobile Users spend 85% of their time in Apps, versus 15% on the Web. Apple users outspend Android users by a factor of three […]

Apple has, without any doubt, a monopoly. It’s not defined in market share but in revenue share.

iA argues that Apple can’t have it both ways: on the one hand claiming that all apps and developers are treated equally, and on the other coming up with a complex set of rules which allow it to grant exceptions when it’s in the iPhone maker’s interest to do so.

It’s a well-argued piece, and the growing number of examples of exceptions to Apple’s 30% cut will provide more fodder for the various antitrust investigations into the App Store.

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Ottawa orders TikTok’s Canadian arm to be dissolved

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The federal government is ordering the dissolution of TikTok’s Canadian business after a national security review of the Chinese company behind the social media platform, but stopped short of ordering people to stay off the app.

Industry Minister François-Philippe Champagne announced the government’s “wind up” demand Wednesday, saying it is meant to address “risks” related to ByteDance Ltd.’s establishment of TikTok Technology Canada Inc.

“The decision was based on the information and evidence collected over the course of the review and on the advice of Canada’s security and intelligence community and other government partners,” he said in a statement.

The announcement added that the government is not blocking Canadians’ access to the TikTok application or their ability to create content.

However, it urged people to “adopt good cybersecurity practices and assess the possible risks of using social media platforms and applications, including how their information is likely to be protected, managed, used and shared by foreign actors, as well as to be aware of which country’s laws apply.”

Champagne’s office did not immediately respond to a request for comment seeking details about what evidence led to the government’s dissolution demand, how long ByteDance has to comply and why the app is not being banned.

A TikTok spokesperson said in a statement that the shutdown of its Canadian offices will mean the loss of hundreds of well-paying local jobs.

“We will challenge this order in court,” the spokesperson said.

“The TikTok platform will remain available for creators to find an audience, explore new interests and for businesses to thrive.”

The federal Liberals ordered a national security review of TikTok in September 2023, but it was not public knowledge until The Canadian Press reported in March that it was investigating the company.

At the time, it said the review was based on the expansion of a business, which it said constituted the establishment of a new Canadian entity. It declined to provide any further details about what expansion it was reviewing.

A government database showed a notification of new business from TikTok in June 2023. It said Network Sense Ventures Ltd. in Toronto and Vancouver would engage in “marketing, advertising, and content/creator development activities in relation to the use of the TikTok app in Canada.”

Even before the review, ByteDance and TikTok were lightning rod for privacy and safety concerns because Chinese national security laws compel organizations in the country to assist with intelligence gathering.

Such concerns led the U.S. House of Representatives to pass a bill in March designed to ban TikTok unless its China-based owner sells its stake in the business.

Champagne’s office has maintained Canada’s review was not related to the U.S. bill, which has yet to pass.

Canada’s review was carried out through the Investment Canada Act, which allows the government to investigate any foreign investment with potential to might harm national security.

While cabinet can make investors sell parts of the business or shares, Champagne has said the act doesn’t allow him to disclose details of the review.

Wednesday’s dissolution order was made in accordance with the act.

The federal government banned TikTok from its mobile devices in February 2023 following the launch of an investigation into the company by federal and provincial privacy commissioners.

— With files from Anja Karadeglija in Ottawa

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Here is how to prepare your online accounts for when you die

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LONDON (AP) — Most people have accumulated a pile of data — selfies, emails, videos and more — on their social media and digital accounts over their lifetimes. What happens to it when we die?

It’s wise to draft a will spelling out who inherits your physical assets after you’re gone, but don’t forget to take care of your digital estate too. Friends and family might treasure files and posts you’ve left behind, but they could get lost in digital purgatory after you pass away unless you take some simple steps.

Here’s how you can prepare your digital life for your survivors:

Apple

The iPhone maker lets you nominate a “ legacy contact ” who can access your Apple account’s data after you die. The company says it’s a secure way to give trusted people access to photos, files and messages. To set it up you’ll need an Apple device with a fairly recent operating system — iPhones and iPads need iOS or iPadOS 15.2 and MacBooks needs macOS Monterey 12.1.

For iPhones, go to settings, tap Sign-in & Security and then Legacy Contact. You can name one or more people, and they don’t need an Apple ID or device.

You’ll have to share an access key with your contact. It can be a digital version sent electronically, or you can print a copy or save it as a screenshot or PDF.

Take note that there are some types of files you won’t be able to pass on — including digital rights-protected music, movies and passwords stored in Apple’s password manager. Legacy contacts can only access a deceased user’s account for three years before Apple deletes the account.

Google

Google takes a different approach with its Inactive Account Manager, which allows you to share your data with someone if it notices that you’ve stopped using your account.

When setting it up, you need to decide how long Google should wait — from three to 18 months — before considering your account inactive. Once that time is up, Google can notify up to 10 people.

You can write a message informing them you’ve stopped using the account, and, optionally, include a link to download your data. You can choose what types of data they can access — including emails, photos, calendar entries and YouTube videos.

There’s also an option to automatically delete your account after three months of inactivity, so your contacts will have to download any data before that deadline.

Facebook and Instagram

Some social media platforms can preserve accounts for people who have died so that friends and family can honor their memories.

When users of Facebook or Instagram die, parent company Meta says it can memorialize the account if it gets a “valid request” from a friend or family member. Requests can be submitted through an online form.

The social media company strongly recommends Facebook users add a legacy contact to look after their memorial accounts. Legacy contacts can do things like respond to new friend requests and update pinned posts, but they can’t read private messages or remove or alter previous posts. You can only choose one person, who also has to have a Facebook account.

You can also ask Facebook or Instagram to delete a deceased user’s account if you’re a close family member or an executor. You’ll need to send in documents like a death certificate.

TikTok

The video-sharing platform says that if a user has died, people can submit a request to memorialize the account through the settings menu. Go to the Report a Problem section, then Account and profile, then Manage account, where you can report a deceased user.

Once an account has been memorialized, it will be labeled “Remembering.” No one will be able to log into the account, which prevents anyone from editing the profile or using the account to post new content or send messages.

X

It’s not possible to nominate a legacy contact on Elon Musk’s social media site. But family members or an authorized person can submit a request to deactivate a deceased user’s account.

Passwords

Besides the major online services, you’ll probably have dozens if not hundreds of other digital accounts that your survivors might need to access. You could just write all your login credentials down in a notebook and put it somewhere safe. But making a physical copy presents its own vulnerabilities. What if you lose track of it? What if someone finds it?

Instead, consider a password manager that has an emergency access feature. Password managers are digital vaults that you can use to store all your credentials. Some, like Keeper,Bitwarden and NordPass, allow users to nominate one or more trusted contacts who can access their keys in case of an emergency such as a death.

But there are a few catches: Those contacts also need to use the same password manager and you might have to pay for the service.

___

Is there a tech challenge you need help figuring out? Write to us at onetechtip@ap.org with your questions.

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Google’s partnership with AI startup Anthropic faces a UK competition investigation

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LONDON (AP) — Britain’s competition watchdog said Thursday it’s opening a formal investigation into Google’s partnership with artificial intelligence startup Anthropic.

The Competition and Markets Authority said it has “sufficient information” to launch an initial probe after it sought input earlier this year on whether the deal would stifle competition.

The CMA has until Dec. 19 to decide whether to approve the deal or escalate its investigation.

“Google is committed to building the most open and innovative AI ecosystem in the world,” the company said. “Anthropic is free to use multiple cloud providers and does, and we don’t demand exclusive tech rights.”

San Francisco-based Anthropic was founded in 2021 by siblings Dario and Daniela Amodei, who previously worked at ChatGPT maker OpenAI. The company has focused on increasing the safety and reliability of AI models. Google reportedly agreed last year to make a multibillion-dollar investment in Anthropic, which has a popular chatbot named Claude.

Anthropic said it’s cooperating with the regulator and will provide “the complete picture about Google’s investment and our commercial collaboration.”

“We are an independent company and none of our strategic partnerships or investor relationships diminish the independence of our corporate governance or our freedom to partner with others,” it said in a statement.

The U.K. regulator has been scrutinizing a raft of AI deals as investment money floods into the industry to capitalize on the artificial intelligence boom. Last month it cleared Anthropic’s $4 billion deal with Amazon and it has also signed off on Microsoft’s deals with two other AI startups, Inflection and Mistral.

The Canadian Press. All rights reserved.

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