Apple has responded to an Australian antitrust complaint, claiming that it is already possible for iOS developers to bypass the App Store.
Apple says developers can use the web to sell services like subscriptions. Amusingly, the company goes on to claim that progressive web applications are a viable alternative to iOS apps. In the process, the company has asked for an Australian lawsuit to be stopped on a technicality.
The dispute between Epic Games and Apple is not a David versus Goliath battle, says the Cupertino-based company: Rather, it is a battle between two Goliaths. Apple asked an Australian court to vote against a trial in the country, arguing that Epic has agreed to terms that clearly state that all legal challenges must be settled in California.
Apple: “The App Store is not the most dominant app marketplace”
In the course of this discovered ZDNet published another report in which Apple laid out a much more substantive defense. The report states:
Apple has responded to the Australian Consumer Watchdog's investigation into app marketplaces, this time rejecting the characterization that the Apple App Store is the most dominant app marketplace and claiming there are other options for iOS users, such as going to a website.
Apple perceives and treats third-party app developers for platforms other than iOS as significant competitors whose pricing and policies limit Apple's ability to exercise power over developers, according to Cupertino.
Apple is unable to ignore the environment in which its app marketplace operates and does not accept the Commission's characterisation that the Apple App Store is "by far the most dominant app marketplace".
Going further, Apple suggests that developers who want to make apps available to iPhone owners can do so by creating so-called progressive web applications (PWAs).
Apple advocates web apps
Web browsers are not only used as a distribution portal but also as a platform themselves on which “Progressive Web Applications” (PWAs) are hosted, which make it unnecessary to download a developer’s app from the App Store (or other means).
PWAs are increasingly available for and through mobile-based browsers and devices, including on iOS. PWAs are apps built using common web technology like HTML 5 but have the look, feel, and functionality of a native app. They can even have an app icon that sits on the device's home screen.
Web apps are becoming increasingly popular. Companies like Amazon, Google, Starbucks, Pinterest, Uber and the FT use web apps. Amazon, for example, has just launched its mobile gaming service Luna as a web app. Microsoft and Google are also launching gaming apps on iOS via web apps. The developer of the messaging app Telegram also recently stated that it is working on a rich web app for iOS devices.
Interestingly, Apple's statement is somewhat ironic, as the entire reason for creating the App Store was because native apps provide a far better experience than web apps. When the iPhone was launched in 2007, Steve Jobs initially envisioned developers creating web apps. However, he quickly changed his mind and the App Store was launched the following year.
Apple is under antitrust pressure worldwide
Apple argues that it does not have a monopoly position in this market because it considers the relevant market to be either "smartphones" or "apps". Since the company holds a minority share of the smartphone market in most of the countries in which it operates, it cannot be considered to be dominant.
Competition watchdogs tend to believe that the relevant market is "iOS apps," and that Apple has a 100 percent monopoly on their sale and distribution. Except in marginal cases, there is no way for a developer to bring an iOS app to market without selling it through the App Store.
Apple is under antitrust pressure worldwide because of the App Store, including from the US federal government, a number of individual US states, the UK and a number of other European countries. (Photo by Unsplash / James Yarema)
