Epic Games, Spotify, Tile launch ‘Coaltiion for App Fairness’

Epic Games, Spotify, and Tile — companies that have complained bitterly about Apple’s App Store practices — have launched a new organization called the “Coalition for App Fairness.”

It’s described as “an independent nonprofit organization founded by industry-leading companies to advocate for freedom of choice and fair competition across the app ecosystem.” The Coalition for App Fairness’ website lists its beefs with Apple as follows:

° Apple uses its control of the iOS operating system to favor itself by controlling the products and features that are available to consumers. Apple requires equipment manufacturers to limit options, forces developers to sell through its App Store, and even steals ideas from competitors. Below outlines two case studies from Tile and Kindle that illustrate these monopolist behaviors

° For most purchases made within its App Store, Apple takes 30% of the purchase price. No other transaction fee — in any industry — comes close. 

Note: an Apple-funded study by the Analyst Group disputes this and says: “…. most app stores and video game marketplaces have the same commission structure as Apple’s (30%). This includes the Google Play Store, Amazon Appstore, Samsung Galaxy Store, Microsoft Store, plus game marketplaces across Xbox, PlayStation, Nintendo and Steam platforms (Steam is 30% for sales below $10 million). Some stores drop the 30% commission rate in specific cases — for example, Steam drops it for higher sales; Amazon charges 20% commissions on video streaming subscriptions; Xbox charges 15% for nongame subscriptions, and so on.”

° iPhone apps (aka software) are only available via the Apple App Store. If consumers want an app to work on their mobile device, the app developer needs to follow the rules, taxes and requirements of Apple. Yet, if consumers want to run that same app from their computer, the rules, taxes and requirements don’t apply. It’s a crazy house of cards.

Current members of the CAP are Basecamp, Blix, Blockchain.com, Deezer, Epic Games, the European Publishers Council, Match Group, News Media Europe, Prepear, Protonmail, SkyDemon, Spotify, and Tile.