Apple’s conduct ‘unrestrained market power’
The tech giant’s monopoly has harmed consumers, according to a submission to Australia’s competition watchdog.
Hello and welcome to The Download, The Australian’s technology blog for the latest tech news.
David Swan 3.45pm: Apple’s conduct ‘unrestrained market power’
Tech giant Apple’s conduct is “symptomatic of unrestrained market power that results in significant harm to Australian consumers”, according to a submission to the ACCC’s app store probe by Fortnite maker Epic Games, seen by The Australian.
Fresh from its work on the mandatory media bargaining code, the ACCC is taking aim at Apple’s App Store and Google’s Play Store, given their increasing importance for both Australian businesses and consumers.
US-based software maker Epic last year brought a landmark legal battle against Apple to Australia, taking on the tech giant in the Federal Court over its 30 per cent app store fee and alleging Apple has breached both Australian Consumer Law and the Competition and Consumer Act.
The ACCC has flagged it is investigating that fee, which Apple recently modified, as well as how apps are ranked and how consumer data is collected and used.
In its submission to the ACCC this week Epic said that if it weren’t for Apple’s market dominance, Australian app developers would have a greater ability to distribute their apps leading to increased competition and innovation.
“In addition, Australian consumers would not be paying the 30 per cent tax that Apple (and Google) impose on the purchase of in‐app content, but would be paying a fraction of that, more consistent with the single digit fees charged in financial transactions that exist in an open and competitive environment,” the submission reads. “Importantly, while Epic’s litigation isin relation to Epic’s apps, Epic’s case in relation to Apple’s conduct has broader implications. Apple’s conduct raises significant consumer and public interest issues that extend substantially beyond gaming and users of these services.”
Epic Games’ global general counsel Kayla Page said in the submission the company welcomes the ACCC’s inquiry.
“Epic believes this inquiry by the ACCC into app marketplaces is both timely and critically important. Mobile app stores, such as Apple’s App Store and Google Play, are already operating as gateways to essential consumer services through digital platforms. The explosive growth in mobile app downloads means there is every reason to believe that these app stores will play an even greater role in the future,” Page says.
“For this reason, Epic contends that these app stores must operate in a manner that facilitates competition, fair access and choice, consumer value for money and innovation.”
Apple said in its own submission late last year that it has made significant investments to enable third-party development in its ecosystem, and that the company must compete aggressibely in every market in which ot operates. It said that over 84 per cent of all App Store apps share none of the revenue they make on the App Store with Apple.
The ACCC is set to hand down an interim report in March.
Richard Ferguson 2.25pm: Google ‘more positive’ after virtual meeting with PM
Prime Minister Scott Morrison says Google is now “more positive” about continuing to operate in Australia, as he refuses to back down on media reforms aimed at making tech giants pay for news content.
The Prime Minister met with Alphabet and Google chief executive Sundar Pichai today after the technology giant threatened to boycott Australia and block its search engine if the government’s proposed news media bargaining code was legislated.
After the meeting, Mr Morrison said that the best way forward for Google was to work with news organisations on paying for content, and that the media reforms will go ahead.
11.40am: Parler CEO says he was fired
Parler, a moderation-light social media platform that was forced offline last month by tech giants over how it policed its content, has fired its chief executive.
John Matze, the former CEO, said he was fired on Friday by the company’s board. He said the board is currently controlled by conservative political donor Rebekah Mercer.
“Over the past few months, I’ve met constant resistance to my product vision, my strong belief in free speech and my view of how the Parler site should be managed,” he said in a statement. “For example, I advocated for more product stability and what I believe is a more effective approach to content moderation.”
The immediate impact on Parler’s efforts to restore service to its roughly 15 million users isn’t known, though a person familiar with the company said Mr. Matze was responsible for creating much of Parler’s original code.
In the months following the U.S. presidential election, Parler carved out a niche but rapidly growing place in social media by wooing conservatives disaffected by mainstream platforms’ efforts to label certain posts and ban users whom they deemed to have violated their guidelines around hate speech, misinformation and false claims of victory by former President Donald Trump.
The Wall Street Journal
Chris Griffith 11.30am: realme offers 5G phone for under $500
Chinese vendor realme has announced a 5G phone for Australia for under $500, which is a major price drop below what they used to be. It’s almost two years since the first 5G phones went on sale in Australia and they then cost more than $1000. However prices are now dropping quickly with 5G a common midrange phone capability.
Realme says the realme 7 5G will sell for $499. Other features include a 120Hz refresh rate display that is suitable for faster gaming action, and a very large 5000mAH battery - the same sized battery as on the Samsung Galaxy S21 Ultra 5G. It offers a dual 5G SIM and is available for pre-order today with sales beginning February 11.
Realme is a relatively new brand in Australia. It says it is a separate company but it has historical connections to the BBK Group which is the parent of Oppo, Vivo and OnePlus.
Chris Griffith 10.50am: Stuart Robert signals law to expand digital identities
Government Services minister Stuart Robert says he is now actively working on expanding the myGovID digital identity program to take it beyond the two million Australian who already use it. He says he is building a federated model for a trusted digital identity framework.
That’s good news as it’s been under development for years. People already use myGovID to connect with a bunch of federal government services. Australian Post already has an Australia Post digital ID that lets you verify who you are using your phone, without a need to carry around other forms of identification. You can use it to prove you are over 18 or for tasks such as collecting items at a post office. (I have used my digital driver’s licence on the Service NSW app for collection parcels at Australia Post.)
Mr Robert told Sky News the government would have another Act through the parliament “this year all going well” that allows other digital identities to be created.
“Eftpos is interested, so is Pharmacy for PharmacyID, that the idea of replicating 100 point check in paper form, like you do now at a bank or a telco, but doing that digitally with absolute and utter assurance, and you can get a PharmacyID and you’ll be able to use that seamlessly for Government,” Mr Robert said.
“We want to provide an easy access for services so Australians can just go, literally, to one place in government and access the federal government services they need.
“Unfortunately, since Federation has been about 500 impediments to data sharing all of it well meaning, but now it stops us using data. For example, I can‘t use Medicare data to assist you with a simple inquiry. I can’t use disability data for a disability support payment to help you get on the NDIS.”
The Digital Transformation Agency (DTA) has been tasked with developing this system and there has been reports of conversations around letting state governments and the private sector develop digital ID platforms. That’s consistent with the idea of building a federated model.
David Swan 10am: PM to meet Google chief today
Scott Morrison will this morning meet Google chief executive Sundar Pichai after the search giant threatened to boycott Australia if the government’s proposed news media bargaining code was legislated.
The code, which followed a competition regular inquiry and is backed by the country’s largest news organisations including News Corp and Nine Entertainment, would force Google and Facebook to negotiate over payment for content.
The Prime Minister last week spoke to Microsoft chief executiveSatya Nadella, who told Mr Morrison that the company would never make similar threats to Google.
Facebook chief executive Mark Zuckerberghas also taken to directly lobbying the government, speaking with Josh Frydenberg last week. The Treasurer did not disclose details of that conversation, but said Mr Zuckerberg “didn’t convince me to back down”.
Mr Frydenberg directed the Australian Competition and Consumer Commission with producing a mandatory code after the regulator concluded Facebook and Google have become unavoidable and had created an imbalance in bargaining power. A voluntary code was abandoned after the ACCC said it considered it unlikely that any agreement would be reached on payment for content.
READ MORE: Microsoft ready to step up on search
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TPG aims rapid fire broadside at NBN
TPG Telecom is targeting apartment owners with its cheap and fast broadband offering – some 10 times faster than the NBN – that is achieved by ‘hot-rodding up’ old copper wire.