Coalition for App Fairness
Formation24 September 2020
FounderEpic Games.
HeadquartersWashington, D.C.
Executive Director
Meghan DiMuzio
Websiteappfairness.org

The Coalition for App Fairness (CAF) is a coalition comprised by companies, who aim to reach a fairer deal for the inclusion of their apps into the Apple App Store or the Google Play Store.[1] The organization's executive director is Meghan DiMuzio[2] and its headquarters are located in Washington, D.C.[3]

Background

See also: Epic Games v. Apple

In July 2015, Spotify launched an email campaign to urge its App Store subscribers to cancel their subscriptions and start new ones through its website, bypassing the 30% transaction fee for in-app purchases required for iOS applications by technology company Apple Inc.[4] A later update to the Spotify app on iOS was rejected by Apple, prompting Spotify's general counsel Horacio Gutierrez to write a letter to Apple's then-general counsel Bruce Sewell, stating: "This latest episode raises serious concerns under both U.S. and EU competition law. It continues a troubling pattern of behavior by Apple to exclude and diminish the competitiveness of Spotify on iOS and as a rival to Apple Music, particularly when seen against the backdrop of Apple's previous anticompetitive conduct aimed at Spotify … we cannot stand by as Apple uses the App Store approval process as a weapon to harm competitors."[5]

In August 2020, Epic Games updated their Fortnite Battle Royale game app on both Apple's App Store and Google's Google Play to include its own storefront that offered a 20% discount on V-Bucks, the in-game currency, if players bought through there rather than through the app stores' storefront, both which take a 30% revenue cut of the sale. Both Apple and Google removed the Fortnite app within hours, as this alternate storefront violated their terms of use that required all in-app purchases to be made through their storefronts. Epic immediately filed lawsuits against both companies challenging their storefront policies on antitrust principles, arguing that their non-negotiable 30% revenue cut is too high and the restrictions against alternate storefronts anticompetitive. Apple has countersued Epic over their behavior, with their suit expected to go to bench trial in 2021, while Google seeks a compromise with Epic.[6] This led to both Apple and Google to remove the Fortnite app from their stores.[6]

Foundation

On 24 September 2020, Epic Games joined forces with thirteen other prominent companies—including the music streaming platform Spotify, Tinder owner Match Group, the encrypted mail service ProtonMail, and the crypto currency website Blockchain.com—to establish the Coalition for App Fairness.[7][8][9] It also includes Basecamp.[10]

The coalition criticizes the fact that for now the app stores of both Apple and Google charge their clients a 30% fee on any purchases made over their stores.[3] Apple and Google defended themselves by arguing that the 30% transaction fee is a standard in the industry[3] while the Coalition for App Fairness states that there is no other transaction fee which is even close to the 30%.[11]

In October 2020, it was reported that the coalition grew from 13 to 40 members since its foundation and received more than 400 applications for membership.[12]

Aims

The group has broadened their demands for the app stores and now also aim for a better treatment for the apps available in the App Store. They claim that Apple favors its own services before other services available on the market[11] and unjustifiably excludes other apps from their App Store.[2] The group has also been viewing other transaction fees like the 5% fee which is charged by credit card companies, and states that Apple charges up to 600% more[1] and would like the 30% fee, which was only included in 2011 by Apple, adapted to a comparable percentage that charge other providers of payment solutions.[13] Its demands are mainly directed at Apple's strict control over its App Store, but to a lesser extent are also directed towards Google.[7] Google allows apps to be downloaded over an independent web link or also another App Store, such as the Epic Game App Store.[14] The organization emphasizes that no app developer should come into the position in which they are discriminated and are not granted the same rights as to the developers of the owner of the app store.[15]

Reactions

In October 2020, Microsoft presented a new framework concerning the access to its Windows 10 operating system by app stores other than the one offered by Microsoft. The new framework is based on the demands of the Coalition for App Fairness.[16] Microsoft emphasized though, that these principles would not apply to the Xbox.[17]

In December 2020, Apple announced that they would be lowering the revenue cut Apple takes for app developers making $1M or less from 30% to 15% if app developers fill out an application for the lowered revenue cut.[18]

In March 2021, Google followed suit by also lowering the revenue cut from the Play Store from 30% to 15% for the first million in revenue earned by a developer each year.[19]

References

  1. ^ a b Amadeo, Ron (24 September 2020). "Epic, Spotify, and others take on Apple with 'Coalition for App Fairness'". Ars Technica. Retrieved 26 September 2020.
  2. ^ a b "Coalition for App Fairness wants iOS app distribution to work like Windows". AppleInsider. Retrieved 22 May 2021.
  3. ^ a b c Lindner, Roland. "Kritik an App-Store-Regeln: Ein neues Bündnis gegen Apple und Google". Frankfurter Allgemeine Zeitung (in German). ISSN 0174-4909. Retrieved 26 September 2020.
  4. ^ Welch, Chris (8 July 2015). "Spotify urges iPhone customers to stop paying through Apple's App Store". The Verge. Vox Media. Retrieved 11 December 2017.
  5. ^ Kafka, Peter (30 June 2016). "Spotify says Apple won't approve a new version of its app because it doesn't want competition for Apple Music". Recode. Vox Media. Retrieved 22 January 2017.
  6. ^ a b Sarkar, Samit (17 August 2020). "Epic Games' Fortnite legal battle with Apple and Google, explained". Polygon. Archived from the original on 24 August 2020. Retrieved 26 September 2020.
  7. ^ a b Perez, Sarah (24 September 2020). "App makers band together to fight for App Store changes with new 'Coalition for App Fairness'". TechCrunch. Archived from the original on 24 September 2020. Retrieved 26 September 2020.
  8. ^ Lewkowicz, Jakub (25 September 2020). "The Coalition for App Fairness formed to counter Apple App Store practices". SD Times. Archived from the original on 20 October 2020. Retrieved 26 September 2020.
  9. ^ Perez, Sarah (21 October 2020). "Coalition for App Fairness, a group fighting for app store reforms, adds 20 new partners". TechCrunch. Retrieved 1 March 2021.[permanent dead link]
  10. ^ Mehta, Ivan (14 December 2022). "Apple will reportedly allow sideloading apps with iOS 17". TechCrunch. Retrieved 22 December 2022.
  11. ^ a b "Anti-Competitive Policies". Coalition for App Fairness. Retrieved 26 September 2020.
  12. ^ Whitlock, Dominic (27 October 2020). "Over 400 Developers Apply to Join 'Coalition For App Fairness'". Global Dating Insights. Archived from the original on 1 November 2020. Retrieved 16 January 2021.
  13. ^ "30% App Tax". Coalition for App Fairness. Archived from the original on 7 March 2021. Retrieved 26 September 2020.
  14. ^ Brandom, Russell (13 August 2020). "Epic is suing Google over Fortnite's removal from the Google Play Store". The Verge. Archived from the original on 14 August 2020. Retrieved 26 September 2020.
  15. ^ "Coalition for App Fairness is a non-profit to oppose Apple and Google's app store practices". xda-developers. 25 September 2020. Retrieved 28 September 2020.
  16. ^ Bonggolto, Jay. "Microsoft outlines 10 app store principles in a jab at Apple". Neowin. Archived from the original on 10 October 2020. Retrieved 21 October 2020.
  17. ^ "10 app store principles to promote choice, fairness and innovation". Microsoft on the Issues. 8 October 2020. Retrieved 21 October 2020.
  18. ^ Leswing, Kif (18 November 2020). "Apple will cut App Store commissions by half to 15% for small app makers". CNBC. Archived from the original on 18 November 2020. Retrieved 10 January 2021.
  19. ^ Singh, Manish (16 March 2021). "Google Play drops commissions to 15% from 30%, following Apple's move last year". TechCrunch. Archived from the original on 30 May 2022. Retrieved 30 May 2022.
Categories