Developer insight: Why app developers are the real losers in Apple’s latest update

The public feud between Facebook and Apple has been heating up over the latter’s controversial App Tracking Transparency update, which Apple claims is rooted in consumer privacy and choice. But app developers the world over want to know, if consumer choice is really so tantamount why doesn’t Apple give its consumers more choice in how they install iOS apps?

Currently, the Apple App Store is the only distribution point for nearly two million iOS apps. With more than $2trn in market share, the restrictions making the App Store nearly impenetrable are causing real blows to the revenue and growth potential of app developers and advertising-based apps and businesses.

Imagine this. A consumer buys a new fridge. Then the maker of that fridge says, “We’ll protect you, but only if you buy food from our stores.” And while they do allow companies like Heinz to sell people ketchup in their stores, they take a 30% cut of the sale, simply because they created the fridge that stores the ketchup. Crazy, right?

Well, that’s how Apple operates its App Store. And app developers everywhere are Heinz – either forced to pay exorbitant fees in the name of consumer privacy or forced to forego the App Store altogether as a means to get their products in front of more consumers. So naturally, a lot of the two million iOS apps get lost in the shuffle, and others may never get the chance to get into the App Store at all, resulting in less choice for consumers, stifled competition and innovation across the marketplace.

Fair access

But what if there were more choice for consumers. How would that benefit app developers and the app ecosystem overall?

Allowing consumers to have alternative channels to access iOS apps outside of the Apple App Store would drive tons of global revenue for small app-based businesses, like mine and millions of others. But that’s just the tip of the iceberg. By introducing competition into the marketplace, we’d start to see innovation at a rapid clip, including more apps and more stores to access them through, enabling businesses to grow and thrive in a way they never would have been able to before. If Apple were to open up its system to other providers rather than continuing to enforce a monopoly in defence of its own cash cows, other reputable vendors could host similar app stores and provide just as trustworthy an app-distribution ecosystem as Apple claims to. This is ultimately the only path to a fair app marketplace.

Working with Apple the last five years, I’ve seen first-hand how the company consistently acts in its own self-interest while hiding behind “consumer protection” to create an uneven playing field. But the truth is, Apple gives consumers “choice” when it benefits their business model, and they remove that choice when it doesn’t. And if left unchecked, these monopolistic actions will continue to unfairly direct billions of dollars and untold jobs away from businesses that are locked out of the competition.

While the US government is starting to take action against Apple and other large-scale monopolies in the US, the time has come for the app ecosystem to finally shake itself free from Apple’s heavy grip, and for all stakeholders involved to understand just how much money is at stake and how harmful Apple’s rules are to fair competition. Not just so that mobile gaming developers and publishers have more opportunity to get their apps in front of potential consumers, but also so consumers actually have more choice, rather than the pretence of it.

Daniel Todd is currently the CEO and founder of Influence Mobile. He has been a Disney TechStars mentor and adviser to several start-ups, and co-founded the online media company Zango in 1999. While there, he was the driving force behind Zango’s Targeted Visitor product and Time Shifted Advertising model. Also during his tenure, Zango was named to the Inc. 500 Fastest Growing Companies list twice ranking as high as number seven.