Apple responded even more to the Australian consumer watchdog investigation into app markets, this time rejecting the characterization that the Apple App Store is the most dominant app market and saying that there are other options for iOS users, such as going to a website.
“Apple perceives and treats other application distributors, for platforms other than iOS, as significant competitors whose prices and policies restrict Apple’s ability to exercise power over developers,” said the iPhone maker in a statement. [PDF] for the Australian Competition and Consumer Commission (ACCC)
“Apple is not in a position to disregard the environment in which its application market operates and does not accept the characterization of the Apple App Store Commission as ‘the most dominant application market by a large margin’.”
Apple and Google’s app store practices are under the microscope by the ACCC as part of its digital platform survey. The ACCC is concerned about the market power held by both technology giants in the application market.
In its view, Apple claims that the ACCC’s position is incorrectly based on the assumption that there is a relevant market failure stemming from Apple’s alleged market power.
“Apple does not believe that, if properly examined, this assumption is correct in the broader online context in which the application market operates and is concerned that such an assumption means that the Commission’s analysis may not be examining whether this assumption is well-founded as a starting point, “he said.
He believes that there is a healthy and competitive market.
Apple said it does not consider it to have a substantial degree of power in any market relevant to the issues that are the subject of the current ACCC investigation, nor does it agree that there is a market failure that requires regulatory intervention or legal action to resolve.
“Apple faces competitive restrictions on distribution alternatives within the iOS ecosystem (including developer sites and other means through which consumers can obtain third-party applications and use them on their iOS devices) and outside of iOS,” he said.
“Even if a user has only iOS-based devices, distribution is far from being limited to the Apple App Store because developers have several alternative channels to reach that user.
“The entire web is available to them, and iOS devices have unrestricted and uncontrolled access to it. A common approach is for users to buy and consume digital content or services on a website.”
The Cupurtino giant also believes that the Apple App Store competes directly with other software distribution platforms, such as Google Play, Samsung Galaxy and the Amazon App Store, although access to these “alternatives” is not granted on iOS.
He also said that he competes with several web-based app stores, such as Steam, Epic Games Store, PUBG, AppStream, Chrome Web Store, Setapp or Microsoft Store.
Currently, application developers cannot publish and distribute an application on an Apple mobile device without using the Apple App Store. Developers who offer features, add-ons or updates “in-app” should use Apple’s payment system instead of an alternative system.
Apple also charges a commission of up to 30% to developers on the value of these transactions or whenever a consumer buys their app. That was reduced in November for some with its new offering, the App Store Small Business Program, which halves commissions to 15% if developers earn less than $ 1 million from all of their apps. Commissions revert to 30%, however, if earnings exceed the $ 1 million mark.
Apple told the ACCC that its practice of charging commission on certain types of transactions is not unique.
“Many platforms charge commission rates comparable to or higher than Apple’s … many platforms also charge users a service fee for payments in addition to their commissions, while Apple does not,” he said.
“Likewise, anti-circumvention provisions are necessary to protect consumers and partners and reduce misuse, requiring transactions to take place on their secure platforms and to safeguard the adopted business model.”