Apple's latest App Store update is one big defense against anti-monopoly lawsuits.
On Wednesday, Apple refreshed the App Store website with a new page called "Principles and Practices," which lists all the good the platform has done for customers and developers using language emphasizing the fairness to Apple's approach.
"We're proud that, to date, developers have earned more than $120 billion worldwide from selling digital goods," the page says. Eighty-four percent of apps are free, "and developers pay nothing to Apple."
It also says the App Store "welcomes competition." Apple's critics will roll their eyes at that claim, but the page lists the third-party apps that compete against Apple's own products, like the iOS Mail app compared to Gmail and the various music-streaming services (hey, Spotify) that compete with Apple Music. But no mention is made about how you can't change default Apple apps to third-party software.
The new page arrives after the US Supreme Court ruled that iPhone owners and third-party developers can sue Apple for antitrust violations over its app store practices. That legal battle dates back to a 2011 class-action lawsuit that said iPhone owners overpay for iOS apps because there's only one official place to download them, and the App Store demands a 30 percent cut on all app sales.
However, Apple claims its control over the iOS ecosystem is both fair for developers and good for the consumer. "We take responsibility for ensuring that apps are held to a high standard for privacy, security, and content because nothing is more important than maintaining the trust of our users," the page says, noting that Apple carefully reviews all apps to ensure quality before they go up on the store.
The same page also mentions Apple's key argument against the looming app store antitrust battle: The company doesn't set the prices on the store; the developers do. The business model has worked and helped create more than 1.5 million jobs in the US, and another 1.5 million in Europe, devoted to iOS app design, the company adds.
Overall, Apple's defense is essentially telling the public, "Hey trust us, we're doing a good job. You don't want to deal with another iOS app store." But it's clear some app makers disagree with the company's approach. In March, Spotify filed a complaint in the European Union claiming Apple's practices can "limit choice and stifle innovation at the expense of the user experience."
The 30 percent cut Spotify must pay to Apple is why the company says it charges $12.99 per month for subscription completed over the App Store. Netflix, on the other hand, recently decided to circumvent the 30 percent App Store "tax" by forcing new subscribers to ditch the Apple iTunes payment method and make the purchase on Netflix's mobile website.
Apple's recent crackdown on third-party parental control apps also prompted a pair of developers to file complaints in the EU. They said Apple did so to promote its own parental control software options, which Apple denies.
It'll be up to the courts and regulators to determine whether Apple's arguments against antitrust action hold any sway. But there's lot of money at stake. Although Apple makes most of its revenue from iPhone sales, the company's "service" category, which includes fees taken from App Store sales, is its second-biggest money maker. This past financial quarter, the services category raked in $11 billion in revenue.