This Week in Apps: OnlyFans bans sexual content, SharePlay delayed, TikTok questioned over biometric data collection

Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy.

The app industry continues to grow, with a record 218 billion downloads and $143 billion in global consumer spend in 2020. Consumers last year also spent 3.5 trillion minutes using apps on Android devices alone. And in the U.S., app usage surged ahead of the time spent watching live TV. Currently, the average American watches 3.7 hours of live TV per day, but now spends four hours per day on their mobile devices.

Apps aren’t just a way to pass idle hours — they’re also a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus. In 2020, investors poured $73 billion in capital into mobile companies — a figure that’s up 27% year-over-year.

This Week in Apps offers a way to keep up with this fast-moving industry in one place with the latest from the world of apps, including news, updates, startup fundings, mergers and acquisitions, and suggestions about new apps and games to try, too.

Do you want This Week in Apps in your inbox every Saturday? Sign up here: techcrunch.com/newsletters

Top Stories

OnlyFans to ban sexually explicit content

OnlyFans logo displayed on a phone screen and a website

(Photo Illustration by Jakub Porzycki/NurPhoto via Getty Images)

Creator platform OnlyFans is getting out of the porn business. The company announced this week it will begin to prohibit any “sexually explicit” content starting on October 1, 2021 — a decision it claimed would ensure the long-term sustainability of the platform. The news angered a number of impacted creators who weren’t notified ahead of time and who’ve come to rely on OnlyFans as their main source of income.

However, word is that OnlyFans was struggling to find outside investors, despite its sizable user base, due to the adult content it hosts. Some VC firms are prohibited from investing in adult content businesses, while others may be concerned over other matters — like how NSFW content could have limited interest from advertisers and brand partners. They may have also worried about OnlyFans’ ability to successfully restrict minors from using the app, in light of what appears to be soon-to-come increased regulations for online businesses. Plus, porn companies face a number of other issues, too. They have to continually ensure they’re not hosting illegal content like child sex abuse material, revenge porn or content from sex trafficking victims — the latter which has led to lawsuits at other large porn companies.

The news followed a big marketing push for OnlyFans’ porn-free (SFW) app, OFTV, which circulated alongside reports that the company was looking to raise funds at a $1 billion+ valuation. OnlyFans may not have technically needed the funding to operate its current business — it handled more than $2 billion in sales in 2020 and keeps 20%. Rather, the company may have seen there’s more opportunity to cater to the “SFW” creator community, now that it has big names like Bella Thorne, Cardi B, Tyga, Tyler Posey, Blac Chyna, Bhad Bhabie and others on board.

U.S. lawmakers demand info on TikTok’s plans for biometric data collection

The TikTok logo is seen on an iPhone 11 Pro max

The TikTok logo is seen on an iPhone 11 Pro max. Image Credits: Nur Photo/Getty Images

U.S. lawmakers are challenging TikTok on its plans to collect biometric data from its users. TechCrunch first reported on TikTok’s updated privacy policy in June, where the company gave itself permission to collect biometric data in the U.S., including users’ “faceprints and voiceprints.” When reached for comment, TikTok could not confirm what product developments necessitated the addition of biometric data to its list of disclosures about the information it automatically collects from users, but said it would ask for consent in the case such data collection practices began.

Earlier this month, Senators Amy Klobuchar (D-MN) and John Thune (R-SD) sent a letter to TikTok CEO Shou Zi Chew, which said they were “alarmed” by the change, and demanded to know what information TikTok will be collecting and what it plans to do with the data. This wouldn’t be the first time TikTok got in trouble for excessive data collection. Earlier this year, the company paid out $92 million to settle a class-action lawsuit that claimed TikTok had unlawfully collected users’ biometric data and shared it with third parties.

Weekly News

Platforms: Apple

Image Credits: Apple

  • ⭐ Apple told developers that some of the features it announced as coming in iOS 15 won’t be available at launch. This includes one of the highlights of the new OS, SharePlay, a feature that lets people share music, videos and their screen over FaceTime calls. Other features that will come in later releases include Wallet’s support for ID cards, the App Privacy report and others that have yet to make it to beta releases.
  • Apple walked back its controversial Safari changes with the iOS 15 beta 6 update. Apple’s original redesign had shown the address bar at the bottom of the screen, floating atop the page’s content. Now the tab bar will appear below the page’s content, offering access to its usual set of buttons as when it was at the top. Users can also turn off the bottom tab bar now and revert to the old, Single Tab option that puts the address bar back at the top as before.
  • In response to criticism over its new CSAM detection technology, Apple said the version of NeuralHash that was reverse-engineered by a developer, Asuhariet Ygvar, was a generic version, and not the complete version that will roll out later this year.
  • The Verge dug through over 800 documents from the Apple-Epic trial to find the best emails, which included dirt on a number of other companies like Netflix, Hulu, Sony, Google, Nintendo, Valve, Microsoft, Amazon and more. These offered details on things like Netflix’s secret arrangement to pay only 15% of revenue, how Microsoft also quietly offers a way for some companies to bypass its full cut, how Apple initially saw the Amazon Appstore as a threat and more.

Platforms: Google

  • A beta version of the Android Accessibility Suite app (12.0.0) which rolled out with the fourth Android beta release added something called “Camera Switches” to Switch Access, a toolset that lets you interact with your device without using the touchscreen. Camera Switches allows users to navigate their phone and use its features by making face gestures, like a smile, open mouth, raised eyebrows and more.
  • Google announced its Pixel 5a with 5G, the latest A-series Pixel phone, will arrive on August 27, offering IP67 water resistance, long-lasting Adaptive Battery, Pixel’s dual-camera system and more, for $449. The phone makes Google’s default Android experience available at a lower price point than the soon to arrive Pixel 6.
  • An unredacted complaint from the Apple-Epic trial revealed that Google had quietly paid developers hundreds of millions of dollars via a program known as “Project Hug,” (later “Apps and Games Velocity Program”) to keep their games on the Play Store. Epic alleges Google launched the program to keep developers from following its lead by moving their games outside the store.

Augmented Reality

  • Snap on Thursday announced it hired its first VP of Platform Partnerships to lead AR, Konstantinos Papamiltiadis (“KP”). The new exec will lead Snap’s efforts to onboard partners, including individual AR creators building via Lens Studio as well as large companies that incorporate Snapchat’s camera and AR technology (Camera Kit) into their apps. KP will join in September, and report to Ben Schwerin, SVP of Content and Partnerships.

Fintech

  • Crypto exchange Coinbase will enter the Japanese market through a new partnership with Japanese financial giant Mitsubishi UFJ Financial Group (MUFG). The company said it plans to launch other localized versions of its existing global services in the future.

Social

Image Credits: Facebook

  • Facebook launched a “test” of Facebook Reels in the U.S. on iOS and Android. The new feature brings the Reels experience to Facebook, allowing users to create and share short-form video content directly within the News Feed or within Facebook Groups. Instagram Reels creators can also now opt in to have their Reels featured on users’ News Feed. The company is heavily investing its its battle with TikTok, even pledging that some portion of its $1 billion creator fund will go toward Facebook Reels.
  • Twitter’s redesign of its website and app was met with a lot of backlash from users and accessibility experts alike. The company choices add more visual contrast between various elements and may have helped those with low vision. But for others, the contrast is causing strain and headaches. Experts believe accessibility isn’t a one-size fits all situation, and Twitter should have introduced tools that allowed people to adjust their settings to their own needs.
  • The pro-Trump Twitter alternative Gettr’s lack of moderation has allowed users to share child exploitation images, according to research from the Stanford Internet Observatory’s Cyber Policy Center.
  • Pinterest rolled out a new set of more inclusive search filters that allow people to find styles for different types of hair textures — like coily, curly, wavy, straight, as well as shaved or bald and protective styles. 

Photos

  • Photoshop for iPad gained new image correction tools, including the Healing Brush and Magic Wand, and added support for connecting an iPad to external monitors via HDMI or USB-C. The company also launched a Photoshop Beta program on the desktop.

Messaging

  • WhatsApp is being adopted by the Taliban to spread its message across Afghanistan, despite being on Facebook’s list of banned organizations. The company says it’s proactively removing Taliban content — but that may be difficult to do since WhatsApp’s E2E encryption means it can’t read people’s texts. This week, Facebook shut down a Taliban helpline in Kabul, which allowed civilians to report violence and looting, but some critics said this wasn’t actually helping local Afghans, as the group was now in effect governing the region.
  • WhatsApp is also testing a new feature that will show a large preview when sharing links, which some suspect may launch around the time when the app adds the ability to have the same account running on multiple devices.

Streaming & Entertainment

  • Netflix announced it’s adding spatial audio support on iPhone and iPad on iOS 14, joining other streamers like HBO Max, Disney+ and Peacock that have already pledged to support the new technology. The feature will be available to toggle on and off in the Control Center, when it arrives.
  • Blockchain-powered streaming music service Audius partnered with TikTok to allow artists to upload their songs using TikTok’s new SoundKit in just one click.
  • YouTube’s mobile app added new functionality that allows users to browse a video’s chapters, and jump into the chapter they want directly from the search page.
  • Spotify’s Anchor app now allows users in global markets to record “Music + Talk” podcasts, where users can combine spoken word recordings with any track from Spotify’s library of 70 million songs for a radio DJ-like experience.
  • Podcasters are complaining that Apple’s revamped Podcasts platform is not working well, reports The Verge. Podcasts Connect has been buggy, and sports a confusing interface that has led to serious user errors (like entire shows being archived). And listeners have complained about syncing problems and podcasts they already heard flooding their libraries.

Dating

  • Tinder announced a new feature that will allow users to voluntarily verify their identity on the platform, which will allow the company to cross-reference sex offender registry data. Previously, Tinder would only check this database when a user signed up for a paid subscription with a credit card.

Gaming

Image Source: The Pokémon Company

  • Pokémon Unite will come to iOS and Android on September 22, The Pokémon Company announced during a livestream this week. The strategic battle game first launched on Nintendo Switch in late July.
  • Developer Konami announced a new game, Castlevania: Grimoire of Souls, which will come exclusively to Apple Arcade. The game is described as a “full-fledged side-scrolling action game,” featuring a roster of iconic characters from the classic game series. The company last year released another version of Castelvania on the App Store and Google Play.
  • Dragon Ball Z: Dokkan Battle has now surpassed $3 billion in player spending since its 2015 debut, reported Sensor Tower. The game from Bandai Namco took 20 months to reach the figure after hitting the $2 billion milestone in 2019. The new landmark sees the game joining other top-grossers, including Clash Royale, Lineage M and others.
  • Sensor Tower’s mobile gaming advertising report revealed data on top ad networks in the mobile gaming market, and their market share. It also found puzzle games were among the top advertisers on gaming-focused networks like Chartboost, Unity, IronSource and Vungle. On less game-focused networks, mid-core games were top titles, like Call of Duty: Mobile and Top War. 

Image Credits: Sensor Tower

Health & Fitness

  • Apple is reportedly scaling back HealthHabit, an internal app for Apple employees that allowed them to track fitness goals, talk to clinicians and coaches at AC Wellness (a doctors’ group Apple works with) and manage hypertension. According to Insider, 50 employees had been tasked to work on the project.
  • Samsung launched a new product for Galaxy smartphones in partnership with healthcare nonprofit The Commons Project, that allows U.S. users to save a verifiable copy of their vaccination card in the Samsung Pay digital wallet.

Image Credits: Samsung

Adtech

Government & Policy

  • China cited 43 apps, including Tencent’s WeChat and an e-reader from Alibaba, for illegally transferring user data. The regulator said the apps had transferred users location data and contact list and harassed them with pop-up windows. The apps have until August 25 to make changes before being punished.

Security & Privacy

  • A VICE report reveals a fascinating story about a jailbreaking community member who had served as a double agent by spying for Apple’s security team. Andrey Shumeyko, whose online handles included JVHResearch and YRH04E, would advertise leaked apps, manuals and stolen devices on Twitter and Discord. He would then tell Apple things like which Apple employees were leaking confidential info, which reporters would talk to leakers, who sold stolen iPhone prototypes and more. Shumeyko decided to share his story because he felt Apple took advantage of him and didn’t compensate him for the work.

Funding and M&A

? South Korea’s GS Retail Co. Ltd will buy Delivery Hero’s food delivery app Yogiyo in a deal valued at 800 billion won ($685 million USD). Yogiyo is the second-largest food delivery app in South Korea, with a 25% market share.

? Gaming platform Roblox acquired a Discord rival, Guilded, which allows users to have text and voice conversations, organize communities around events and calendars and more. Deal terms were not disclosed. Guilded raised $10.2 million in venture funding. Roblox’s stock fell by 7% after the company reported earnings this week, after failing to meet Wall Street expectations.

? Travel app Hopper raised $175 million in a Series G round of funding led by GPI Capital, valuing the business at over $3.5 billion. The company raised a similar amount just last year, but is now benefiting from renewed growth in travel following COVID-19 vaccinations and lifting restrictions.

? Indian quiz app maker Zupee raised $30 million in a Series B round of funding led by Silicon Valley-based WestCap Group and Tomales Bay Capital. The round values the company at $500 million, up 5x from last year.

? Danggeun Market, the publisher of South Korea’s hyperlocal community app Karrot, raised $162 million in a Series D round of funding led by DST Global. The round values the business at $2.7 billion and will be used to help the company launch its own payments platform, Karrot Pay.

? Bangalore-based fintech app Smallcase raised $40 million in Series C funding round led by Faering Capital and Premji Invest, with participation from existing investors, as well as Amazon. The Robinhood-like app has over 3 million users who are transacting about $2.5 billion per year.

? Social listening app Earbuds raised $3 million in Series A funding led by Ecliptic Capital. Founded by NFL star Jason Fox, the app lets anyone share their favorite playlists, livestream music like a DJ or comment on others’ music picks.

? U.S. neobank app One raised $40 million in Series B funding led by Progressive Investment Company (the insurance giant’s investment arm), bringing its total raise to date to $66 million. The app offers all-in-one banking services and budgeting tools aimed at middle-income households who manage their finances on a weekly basis.

Public Markets

?Indian travel booking app ixigo is looking to raise Rs 1,600 crore in its initial public offering, The Economic Times reported this week.

?Trading app Robinhood disappointed in its first quarterly earnings as a publicly traded company, when it posted a net loss of $502 million, or $2.16 per share, larger than Wall Street forecasts. This overshadowed its beat on revenue ($565 million versus $521.8 million expected) and its more than doubling of MAUs to 21.3 million in Q2.  Also of note, the company said dogecoin made up 62% of its crypto revenue in Q2.

Downloads

Polycam (update)

Image Credits: Polycam

3D scanning software maker Polycam launched a new 3D capture tool, Photo Mode, that allows iPhone and iPad users to capture professional-quality 3D models with just an iPhone. While the app’s scanner before had required the use of the lidar sensor built into newer devices like the iPhone 12 Pro and iPad Pro models, the new Photo Mode feature uses just an iPhone’s camera. The resulting 3D assets are ready to use in a variety of applications, including 3D art, gaming, AR/VR and e-commerce. Data export is available in over a dozen file formats, including .obj, .gtlf, .usdz and others. The app is a free download on the App Store, with in-app purchases available.

Jiobit (update)

Jiobit, the tracking dongle acquired by family safety and communication app Life360, this week partnered with emergency response service Noonlight to offer Jiobit Protect, a premium add-on that offers Jiobit users access to an SOS Mode and Alert Button that work with the Jiobit mobile app. SOS Mode can be triggered by a child’s caregiver when they detect — through notifications from the Jiobit app — that a loved one may be in danger. They can then reach Noonlight’s dispatcher who can facilitate a call to 911 and provide the exact location of the person wearing the Jiobit device, as well as share other details, like allergies or special needs, for example.

Tweets

When your app redesign goes wrong…

Image Credits: Twitter.com

Prominent App Store critic Kosta Eleftheriou shut down his FlickType iOS app this week after too many frustrations with App Review. He cited rejections that incorrectly argued that his app required more access than it did — something he had successfully appealed and overturned years ago. Attempted follow-ups with Apple were ignored, he said. 

Image Credits: Twitter.com

Anyone have app ideas?

#911, #ac-wellness, #ad-networks, #afghanistan, #alibaba, #amazon, #amy-klobuchar, #android, #app-store, #apple, #apple-arcade, #apps, #arkansas, #audius, #bandai-namco, #bangalore, #chartboost, #coinbase, #computing, #control-center, #danggeun-market, #delivery-hero, #disney, #dst-global, #e-commerce, #e-reader, #e2e-encryption, #ecliptic-capital, #epic, #facebook, #faering-capital, #food, #google, #gpi-capital, #guilded, #hbo, #hdmi, #healthcare, #instagram, #ios, #ipad, #iphone, #ironsource, #itunes, #jason-fox, #john-thune, #kabul, #konami, #kosta-eleftheriou, #lens-studio, #microsoft, #mobile-app, #mobile-applications, #mobile-devices, #netflix, #nfl, #nintendo, #noonlight, #operating-systems, #pinterest, #play-store, #player, #pokemon-company, #roblox, #samsung, #sensor-tower, #silicon-valley, #smartphones, #snap, #snapchat, #software, #sony, #south-korea, #spotify, #svp, #taliban, #tc, #this-week-in-apps, #tiktok, #travel-app, #united-states, #wand

Apple’s new App Store Guidelines aim to crack down on fraud and scams

Apple today is releasing a new version of its App Store Review Guidelines, its lengthy document which dictates the rules which apps must abide by in order to be published to its App Store. Among the more notable changes rolling out today are several sections that will see Apple taking a harder stance on App Store fraud, scams and developer misconduct, including a new process that aims to empower other developers to hold bad actors accountable.

One of the key updates on this front involves a change to Apple’s Developer Code of Conduct (Section 5.6 and 5.6.1-5.6.4 of the Review Guidelines).

This section has been significantly expanded to include guidance stating that repeated manipulative or misleading behavior or other fraudulent conduct will lead to the developer’s removal from the Apple Developer Program. This is something Apple has done for repeated violations, it claims, but wanted to now ensure was clearly spelled out in the guidelines.

In an entirely new third paragraph in this section, Apple says that if a developer engages in activities or actions that are not in accordance with the developer code of conduct, they will have their Apple Developer account terminated.

It also details what, specifically, must be done to restore the account, which includes providing Apple with a written statement detailing the improvements they’ve made, which will have to be approved by Apple. If Apple is able to confirm the changes has been made, it may then restore the developer’s account.

Apple explained in a press briefing that this change was meant to prevent a sort of catch and release scenario where a developer gets caught by Apple, but then later reverts their changes to continue their bad behavior.

As part of this update, Apple added a new section about developer identity (5.6.2). This is meant to ensure the contact information for developers provided to Apple and customers is accurate and functional, and that the developer isn’t impersonating other, legitimate developers on the App Store. This was a particular issue in a high-profile incident of App Store fraud which involved a crypto wallet app that scammed a user out of his life savings (~$600,000) in Bitcoin. The scam victim had been deceived because the app was using the same name and icon as a different company that made a hardware crypto device, and because the scan app was rated 5 stars. (Illegitimately, that is).

Related to this, Apple clarified the language around App Store discovery fraud (5.6.3) to more specifically call out any type of manipulations of App Store charts, search, reviews and referrals. The former would mean to crack down on the clearly booming industry of fake App Store ratings and reviews, which can send scam app up higher in charts and search.

Meanwhile, the referral crackdown would address consumers being shown incorrect pricing outside the App Store in an effort to boost installs.

Another section (5.6.4) addresses issues that come up after an app is published, including negative customer reports and concerns and excessive refund rates, for example. If Apple notices this behavior, it will investigate the app for violations, it says.

Of course, the question here is: will Apple actually notice the potential scammers? In recent months, a growing number of developers believe Apple is allowing far too many scammers to fall through the cracks of App Review.

One particular thorn in Apple’s side has been Fleksy keyboard app founder Kosta Eleftheriou, who is not only suing Apple for the revenue he’s personally lost to scammers, but also formed a sort of one-man bunco squad to expose some of the more egregious scams to date. This has included the above-mentioned crypto scam; a kids game that actually contained a hidden online casino; and a VPN app scamming users out of $5 million per year, among many others.

The rampant fraud taking place on the App Store was also brought up during Apple’s antitrust hearing, when Georgia’s Senator Jon Ossoff asked Apple’s Chief Compliance Officer Kyle Andeer why Apple was not able to locate scams, given they’re “trivially easy” to identify.

Apple downplayed the concerns then, and continues to do so through press releases like this one which noted how the App Store stopped over $1.5 billion in fraudulent transactions in 2020.

But a new update to these Guidelines seems to be an admission that Apple may need a little help on this front. It says developers can now directly report possible violations they find in other developers’ apps. Through a new form that standardizes this sort of complaint, developers can point to guideline violations and any other trust and safety issues they discover. Often, developers notice the scammers whose apps are impacting their own business and revenue, so they’ll likely turn to this form now as a first step in getting the scammer dealt with.

Another change will allow developers to appeal a rejection if they think there was unfair treatment of any kind, including political bias. Previously, Apple had allowed developers to appeal App Store decisions and suggest changes to guidelines.

Apple told us it has 500 app reviewers covering 81 languages who see new scenarios daily that have to be accounted for in updated guidelines and policies. Apple says it takes what it learns from these individual issues it encounters to invest in its systems, algorithms and training so it can prevent similar issues in the future. The company believes the new Code of Conduct rules, in particular, will give it the tools needed to better crack down on App Store fraud.

The rules about scams are only a handful of the many changes rolling out with today’s updated App Store Review Guidelines.

There are a few others, however, also worth highlighting:

  • Apple clarified rules around “hookup” apps to ensure developers understand porn and prostitution are not allowed on the App Store — often an issue with the fly-by-night hookup apps, which bait and switch users.
  • Creator content apps are instructed that they must follow rules for user-generated content, when applicable, meaning they must have content blocking, reporting and robust moderation.
  • Apple added the ability for licensed pharmacies and licensed cannabis dispensaries to facilitate purchasing provided they’re legal and geogated.
  • Apps that report criminal activity require the developers to work with local law enforcement. (Citizen is a recent example of an app gone awry when users hunted down the wrong person. That level of carelessness may be coming to an end now.)
  • Bait-and-switch marketing and ads about app pricing isn’t allowed.
  • Cellular carrier apps can now include other kinds of subscription apps besides music and video services.
  • Apple clarifies that developers can communicate on email with anyone, but says they can’t target customers acquired through the App Store with messages about how to make purchases outside of the App Store.
  • Apple has enough drinking game apps. Stop sending them in.
  • Apps that offer account creation also have to offer account deletion.
  • Other clarity was added around in-app purchases for gift cards, app metadata, bug fix submissions, and more. But these were not major changes.

read more about Apple's WWDC 2021 on TechCrunch

#app-store, #apple, #apple-inc, #apple-news, #apps, #computing, #epic-games, #georgia, #itunes, #kosta-eleftheriou, #tc, #technology, #video-services, #vpn, #wwdc-2021

Apple downplays complaints about App Store scams in antitrust hearing

Apple was questioned on its inability to rein in subscription scammers on its App Store during yesterday’s Senate antitrust hearing. The tech giant has argued that one of the reasons it requires developers to pay App Store commissions is to help Apple fight marketplace fraud and protect consumers. But developers claim Apple is doing very little to stop obvious scams that are now raking in millions and impacting consumer trust in the overall subscription economy, as well as in their own legitimate, subscription-based businesses.

One developer in particular, Kosta Eleftheriou, has made it his mission to highlight some of the most egregious scams on the App Store. Functioning as a one-man bunco squad, Eleftheriou regularly tweets out examples of apps that are leveraging fake reviews to promote their harmful businesses.

Some of the more notable scams he’s uncovered as of late include a crypto wallet app that scammed a user out of his life savings (~$600,000) in bitcoin; a kids game that actually contained a hidden online casino; and a VPN app scamming users out of $5 million per year. And, of course, there’s the scam that lit the fire in the first place: A competitor to Eleftheriou’s own Apple Watch app that he alleges scammed users out of $2 million per year, after stealing his marketing materials, cloning his app and buying fake reviews to make the scammer’s look like the better choice.

Eleftheriou’s tweets have caught the attention of the larger app developer community, who now email him other examples of scams they’ve uncovered. Eleftheriou more recently took his crusade a step further by filing a lawsuit against Apple over the revenue he’s lost to App Store scammers.

Though Eleftheriou wasn’t name-checked in yesterday’s antitrust hearing, his work certainly was.

In a line of questioning from Georgia’s Senator Jon Ossoff, Apple’s Chief Compliance Officer Kyle Andeer was asked why Apple was not able to locate scams, given that these fraudulent apps are, as Ossoff put it, “trivially easy to identify as scams.”

He asked why do we have rely upon “open-source reporting and journalists” to find the app scams — a reference that likely, at least in part, referred to Eleftheriou’s recent activities.

Eleftheriou himself has said there’s not much to his efforts. You simply find the apps generating most revenues and then check them for suspicious user reviews and high subscription prices. When you find both, you’ve probably uncovered a scam.

Andeer demurred, responding to Ossoff’s questions by saying that Apple has invested “tens of millions, hundreds of millions of dollars” in hardening and improving the security of its App Store.

“Unfortunately, security and fraud is a cat-and-mouse game. Any retailer will tell you that. And so we’re constantly working to improve,” Andeer said. He also claimed Apple was investing in more resources and technologies to catch wrong-doers and noted that the App Store rejected thousands of apps every year for posing a risk to consumers.

The exec then warned that if Apple wasn’t the intermediary, the problem would be even worse.

” … No one is perfect, but I think what we’ve shown over and over again that we do a better job than others. I think the real risks of opening up the iPhone to sideloading or third-party app stores is that this problem will only multiply. If we look at other app stores out there, we look at other distribution platforms, it scares us.”

Ossoff pressed on, noting the sideloading questions could wait and inquired again about the scam apps.

“Apple is making a cut on those abusive billing practices, are you not?” he asked.

Andeer said he didn’t believe that was the case.

“If we find fraud — if we find a problem, we’re able to rectify that very quickly. And we do each and every day,” he said.

But to what extent Apple was profiting from the App Store scams was less clear. Ossoff wanted to know if Apple refunded “all” of its revenues derived from the scam billing practices — in other words, if every customer who ever subscribed got their money back when a scam was identified.

Andeer’s answer was a little vague, however, as it could be interpreted to mean Apple refunds customers who report the scam or file a complaint — procedures it already has in place today. Instead of saying that Apple refunds “all customers” when scams are identified, he carefully worded his response to say Apple worked to make sure “the customer” is made whole.

“Senator, that’s my understanding. There’s obviously a dedicated team here at Apple who works this each and every day. But my understanding is that we work hard to make sure the customer is in a whole position. That’s our focus at the end of the day. If we lose the trust of our customers, that’s going to hurt us,” he said.

For what it’s worth, Eleftheriou wasn’t buying it.

“Apple’s non-answers to Senator Ossoff’s great questions in yesterday’s hearing should anger all of us. They did not offer any explanation for why it’s so easy for people like me to keep finding multimillion-dollar scams that have been going on unchecked on the App Store for years. They also gave no clear answer to whether they’re responsible for fraudulent activity in their store,” he told TechCrunch.

“Apple appears to profit from these scams, instead of refunding all associated revenues back to affected users when they belatedly take some of these down. We’ve been letting Apple grade their own homework for over a decade. I urge the committee to get to the bottom of these questions, including Apple’s baffling decision years ago to remove the ability for users to flag suspicious apps on the App Store,” Eleftheriou added.

Apple did not provide a comment.

#app-store, #apple, #apple-inc, #apple-wallet, #cloning, #iphone, #itunes, #kosta-eleftheriou, #mobile-app, #senate, #tc, #twitter