This Week in Apps: Google, Apple, and YouTube Updates

The Mobile World This Week: App Economy Updates

Welcome back to This Week in Apps, the series from TechCrunch dedicated to recapping the latest developments in mobile operating systems, applications, and the broader app economy.

The app industry continues to thrive, achieving a record 218 billion downloads and $143 billion in global consumer spending in 2020.

Last year, consumers devoted an astounding 3.5 trillion minutes to using apps on Android devices alone. Furthermore, app usage in the U.S. now surpasses the time spent watching live television. Currently, Americans average 3.7 hours of live TV viewing daily, but dedicate four hours to their mobile devices.

Apps are not merely a source of entertainment; they represent a significant business opportunity. Mobile-first companies boasted a combined valuation of $544 billion in 2019, 6.5 times greater than those without a mobile focus. In 2020, investors channeled $73 billion into mobile companies, a 27% year-over-year increase.

This week saw numerous noteworthy events in the app ecosystem, including Google’s decision to adjust Play Store commissions, an App Store lawsuit concerning fraudulent apps, debates surrounding Apple’s App Tracking Transparency, and the launch of YouTube Shorts, a competitor to TikTok.

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Top Stories

Developer Files Suit Against Apple Over Lost Revenue

Kosta Eleftheriou, co-founder of the Fleksy keyboard app, has actively raised awareness regarding App Store scams, after his own application was targeted by copycat subscription schemes utilizing fake ratings and reviews. This week, Eleftheriou initiated a lawsuit seeking to hold Apple accountable for revenue lost due to these scams.

The lawsuit alleges that Apple promises a secure and trustworthy marketplace for developers, but permits these fraudulent actors to operate, harming legitimate apps. While some reports characterized the case as an antitrust action, it primarily focuses on accountability for scammers and Apple’s management of the App Store, including app listing and policing. Eleftheriou is requesting compensation for lost revenue and damages resulting from what he claims is Apple’s mismanagement and unfair App Review practices.

Google Play Reduces Commissions

Google has mirrored Apple’s move to lower commissions on the Google Play Store. However, Google’s reduction applies to the first $1 million in developer revenue, lowering commissions from 30% to 15%. Apple begins charging 30% after a developer exceeds $1 million in revenue.

Google stated that 99% of developers selling through the Play Store will experience a 50% reduction in fees. According to App Annie data, a small number of Google Play developers surpass $1 million in revenue—only 2,035, compared to 3,611 on iOS. In 2020, developers earning up to $1 million in consumer spending accounted for only 5% of total Google Play consumer spending.

Apple’s ATT Gains Ground in France

Apple successfully defended its App Tracking Transparency (ATT) requirements in France against challenges from advertisers. The complaint argued that Apple’s ATT requirements for third parties contrasted with its own first-party apps, which are permitted to track users by default for ad personalization.

France’s competition regulator determined that Apple’s plans “do not appear to be abusive” and declined to intervene based on potential negative impacts on some apps. However, the authority will further investigate Apple to assess any potential self-preferencing practices.

YouTube Launches Shorts in the U.S.

YouTube Shorts, the short-form video platform, initially launched in India, where TikTok is banned, in September. It has now expanded to the U.S. in its first major international rollout.

The feature, currently in beta, provides a TikTok-like experience for both content creation and viewing. Users can record video segments up to 60 seconds long, utilizing editing features like text captions, countdown timers, and speed controls. The viewing experience mirrors TikTok, with vertical video feeds, like, comment, and hashtag/sound interaction options.

YouTube believes Shorts’ integration with the broader YouTube ecosystem—including YouTube Music and the main platform—offers a competitive advantage. Users can subscribe to YouTube channels directly from Shorts. However, Shorts currently lacks some of TikTok’s features, such as advanced AR effects, sound synchronization, and the ability to react to videos through stitches and duets.

Weekly News

Platforms: Apple

Apple will permit the Russian government to pre-install apps on iPhones starting April 1, 2021. A new law mandates that iPhone users will see a dialog box during setup prompting them to install web browsers, antivirus software, messaging apps, and email clients. Users can deselect these apps or remove them later.

Reports suggest Apple may soon deliver standalone iOS security updates. Code found in the iOS 14.5 beta indicates Apple could allow critical security updates for older iPhones without requiring full iOS updates. This could benefit older devices where users avoid updates due to performance concerns.

Apple claims the App Store supports 300,000 jobs in the U.K., a 10% year-over-year increase, as well as 250,000 jobs in Germany and France. These figures were released in response to increased antitrust scrutiny, demonstrating the App Store’s economic contribution.

Platforms: Google

App Annie data reveals the limited number of Google Play developers affected by the higher 30% commission after the policy change. Google’s 15% commission on the first $1 million in revenue covers the vast majority of developers, with only 2,035 exceeding that threshold.

Google updated its People API, replacing the deprecated Contacts API on June 15, 2021. The new API includes endpoints for batch mutations and Contact searches.

Google updated parental controls for Android via Family Link. The updates acknowledge that not all screen time is equal, allowing parents to designate apps—like those for virtual schooling—as “always allowed” without counting toward daily limits. Reporting has also been improved to show children’s app usage.

Google now allows third-party developers to build Tiles for Wear OS smartwatches. Tiles are fast-loading experiences delivering timely information, linking to related apps on the watch or phone.

E-commerce

Facebook’s Mark Zuckerberg stated his company is preparing for Apple’s IDFA changes by investing in commerce products on Facebook and Instagram Shops. He announced 1 million active Shops, used by 250 million people monthly.

Social

Twitter is testing a feature allowing users to watch YouTube videos directly within the iOS home timeline, eliminating redirects to the YouTube app. This is enabled by YouTube’s iFrame Player API.

TikTok will no longer allow users to opt out of personalized advertising starting April 15th. Users will receive a notice at launch, and ads will be based on their viewing and engagement habits.

Reuters reports TikTok may add group chats early this year. This feature is already available in the Chinese version, Douyin, and would enhance the app’s social capabilities.

Instagram added new teen safety tools amid competition with TikTok. TikTok has improved teen safety, and Instagram followed suit, making it more difficult for adult predators to reach teens through alerts and blocking features.

Leaked recordings reveal Rebekah Mercer’s role at Parler, where she participated in meetings to rally employees against the platform’s shutdown, according to Bloomberg.

Facebook is developing an age-gate for Instagram to create a curated, COPPA-compliant experience for users under 13. This mirrors TikTok’s approach and aims to address privacy concerns.

Messaging

China banned Signal. The encrypted messaging app became unavailable on the mainland on March 16, following a ban on its website.

Telegram is developing an audio experience allowing users to create voice chats in Telegram Channels. The feature is in beta testing.

Streaming & Entertainment

Clubhouse hired Fadia Kader as its new head of Media Partnerships and Creators. Kader brings experience from Instagram, Twitter, and Def Jam.

Clubhouse promises its accelerator participants brand deals or $5,000 per month during its three-month program. The company will work with 20 creators to produce, book guests, and promote their shows.

Clubhouse is under investigation by France’s privacy watchdog, CNIL, to determine GDPR compliance. Germany’s regulator is conducting a similar investigation.

Premium content drove up in-app purchase (IAP) prices in 2020. The median IAP price among top non-game apps was $5.99, up from $3.99 in 2017. Subscription IAP prices remained flat at $9.99.

AT&T will count HBO Max streams against data limits. The company previously exempted these streams but cites a California net neutrality law.

Gaming

U.S. mobile puzzle game spending increased 30% year-over-year to $4.6 billion in 2020. Candy Crush Saga led revenue, followed by Homescapes and Gardenscapes.

Health & Fitness

Apple Maps now displays COVID-19 vaccine locations in the U.S., sourcing data from VaccineFinder.

Facebook will label COVID-19 vaccine posts with links to authoritative sources. It will also reduce the distribution of content violating vaccine misinformation policies.

Security & Privacy

Facebook expanded security key support to mobile users on iOS and Android.

California passed regulations banning “dark patterns” in websites and apps, which are designed to trick users.

A pCloud report revealed the amount of personal data accessed by apps. Facebook and Instagram collected the most data.

Big tech companies are increasing lobbying efforts in U.S. state capitals. An app store payments bill is being debated in Arizona.

A Chinese consortium introduced a new method for tracking iPhone users as an alternative to IDFA.

Google finally released iOS privacy labels for Chrome and Google Search.

Business, Enterprise and Productivity

App Annie partnered with Snowflake and introduced a Salesforce integration.

Google Meet rolled out the tile view on iOS, with Android support coming soon.

Funding and M&A

🤝 Snap acquired Fit Analytics, a Berlin-based clothing size recommendation engine. Deal terms were undisclosed.

💰 Riva Health raised $15.5 million in seed funding to develop a smartphone-based blood pressure monitor.

💰 Kuda, a mobile banking app, raised $25 million to expand across Africa.

💰 Invstr, a mobile investing app, raised $20 million.

💰 Gatsby, an investing app, raised a $10 million Series A.

💰 Digitail, an app for veterinary surgery practices, raised $2.5 million in seed funding.

💰 Match Group invested in Garbo, a background check nonprofit.

📉 Telegram is selling $1 billion in debt to fund operations.

Downloads

Swell

Swell offers asynchronous voice conversations, where users post audio clips for others to respond to. The app is available on iOS and Android.

1v1Me

1v1Me allows users to gamble on their skills in player-versus-player games. The iOS app is currently in invite-only mode.

Half Lemons

Half Lemons is an iOS recipe app that suggests dishes based on ingredients you have on hand.

Retrofy your iPhone

Retrofy offers a retro iOS 14 theme with over 110 Mac OS ’84 icons and monochromatic wallpapers.