Apple tweaks its App Store algorithm as antitrust investigations loom – gpgmail


That Apple has used its App Store to offer itself a competitive advantage is nothing new. gpgmail and others have been reporting on this problem for years, including those times when Apple chose to display its apps in the No. 1 position on the Top Charts, for example, or when it stole some of the App Store’s best ideas for its own, banned apps that competed with iOS features, or positioned its apps higher than competitors in search. Now, in the wake of antitrust investigations in the U.S. and abroad as well as various anticompetitive lawsuits, Apple has adjusted the App Store’s algorithm so fewer of its own apps would appear at the top of the search results.

The change was reported by The New York Times on Monday, who presented Apple with a lengthy analysis of app rankings.

It even found that some searches for various terms would display as many as 14 Apple-owned apps before showing any results from rivals. Competitors could only rank higher if they paid for an App Store search ad, the report noted.

That’s a bad look for Apple which has recently been trying to distance itself and its App Store from any anti-competitive accusations.

In May, for example, Apple launched a new App Store website designed to demonstrate how it welcomes competition from third-party apps. The site showed that for every Apple built-in app, there were competitors available throughout the App Store.

But availability in the store and discoverability by consumers are two different things.

Apple admitted to The NYT that for over a year many common searches on the App Store would return Apple’s own apps, even when the Apple apps were less popular or relevant at times. The company explained the algorithm wasn’t manipulated to do so. For the most part, Apple said its own apps ranked higher because they’re more popular and because they come up in search results for many common terms. The company additionally said that one feature of the app’s algorithm would sometimes group apps by their maker, which gave Apple’s own apps better rankings than expected.

Above: via The NYT, the average number of Apple apps that returned at the top of the search results by month

Apple said it adjusted the algorithm in July to make it seem like Apple’s own apps weren’t receiving special treatment. According to the NYT, both Apple VP Philip Schiller, who oversees the App Store, and SVP Eddy Cue, who oversees many of Apple’s apps, confirmed that these changes have not fully fixed the problem.

The issue, as Apple explains it, is that its own apps are so popular that it had to tweak its algorithm to pretend they are not. Whether or not this is true can’t be independently verified, however, as Apple doesn’t allow any visibility into metrics like searches, downloads, or active users.

Maybe it’s time for Apple’s apps to exit the App Store?

The report, along with the supposed ineffectiveness of the algorithm’s changes, begs the question as to whether Apple’s apps should show up in the App Store’s charts and search results at all, and if so, how.

To be fair, this is a question that’s not limited to Apple. Google today is facing the same problem. Recently, the CEO of a popular software program, Basecamp, called Google’s paid search ads a “shakedown,” arguing that the only way his otherwise No. 1 search result can rank at the top of the search results page is to buy an ad. Meanwhile, his competitors can do so — even using his brand name as the keyword to bid against.

The same holds true for the App Store, but on a smaller scale than the entirety of the web. That also makes Apple’s problem easier to solve.

For example, Apple could simply choose to offer a dedicated section for its own software downloads, and leave the App Store as the home for third-party software alone.

This sort of change could help to eliminate concerns over Apple’s anti-competitive behavior in the search results and chart rankings. Apple might balk against this solution, saying that users should have an easy way to locate and download its own apps, and the App Store is the place to do that. But the actual marketplace itself could be left to the third-party software while the larger App Store app — which today includes a variety of app-related content including app reviews, interviews with developers, app tips, and a subscription gaming service, Apple Arcade — could still be used to showcase Apple-produced software.

It could just do so outside the actual marketplace.

Here’s how this could work. If users wanted to re-install an Apple app they had deleted or download one that didn’t come pre-installed on their device, they could be directed to a special Apple software download page. Pointers to this page could be in the App Store app itself as well as in the iOS Settings.

An ideal spot for this section could even be on the existing Search page of the App Store.

With a redesign, Apple could offer a modified search screen where users could optionally check a box to return a list of apps results that would come only from Apple. This would indicate intentional behavior on the consumer’s part. That is, they are directly seeking an Apple software download — as opposed to the current situation where a user searches for “Music” and sees Apple’s own music app appear above all the others from rivals, like Spotify and Pandora.

Alternately, Apple could just list its own apps on this page or offer a link to this dedicated page from the search screen.

And these are just a few variations on a single idea. There are plenty of other ways the App Store could be adjusted to be less anti-competitive, too.

As another example, Apple could also include the “You Might Also Like” section in its own apps’ App Store listings, as it does for all third-party apps.

Image from iOS 1Above: Apple Music’s App Store Listing

This section directs users to other apps that match the same search query right within the app’s detail page. Apple’s own apps, however, only include a “More by Apple” section. That means its keeping all the search traffic and consumer interest for itself.

Image from iOS

Above: Spotify’s App Store Listing

Or it could reduce the screen space dedicated to its own apps in the search results — even if they rank higher — in order to give more attention to apps from competitors while still being able to cater to users who were truly in search of Apple’s software.

But ultimately, how Apple will have to behave with regard to its App Store may be left to the regulators to decide, given Apple’s failure to bake this sort of anti-competitive thinking into its App Store design.

 


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Downloads need to rank No. 1 on App Store is down 30% since 2016 for apps, up 47% for games – gpgmail


With the App Store’s big makeover in fall 2017, Apple attempted to shift consumers’ attention away from the Top Charts and more towards editorial content. But app developers still want to make it to the No. 1 position. According to new research from app store intelligence firm Sensor Tower, it’s become easier for non-game apps over the past few years to achieve the top ranking.

Specifically, the firm found that the median number of daily downloads required for non-game applications on the U.S. iPhone App Store to reach No. 1 decreased around 34% from 136,000 to 90,000 in 2018, then increased a little more than 4% to 94,000 this year.

At the same time, the number of non-game installs on the U.S. App Store had increased by 33% between Q1 2016 and Q1 2019.

These findings, Sensor Tower suggests, indicate that the U.S. market for the top social and messaging apps has become saturated, with downloads for top apps like Facebook and Messenger decreasing over time. In addition, no other apps have found the same level of success that Snapchat and Bitmoji did back in 2016 and 2017, the report adds.

For example, Messenger saw 5 million U.S. App Store installs in November 2016 while Bitmoji and Snapchat passed 5 million installs in August 2016 and March 2017, respectively. And no other non-game app has topped 3.5 million installs in a single month since March 2017.

Meanwhile, the decline in downloads needed to reach the No. 1 spot on Google Play was even more significant.

The median daily downloads for the top non-game app decreased by 65% from 209,000 in 2016 to 74,000 so far in 2019.

Similarly, the store saw a decrease in installs among top apps, including Messenger, Facebook, Snapchat, Pandora and Instagram. Messenger, for example, saw its yearly installs fall by 68% from nearly 80 million in 2016 to 26 million in 2018.

Games

With mobile games, however, it’s a different story across both app stores.

On the Apple App Store, it has taken 174,000 downloads for a game to reach the top of the rankings on any given day in 2019 — 85% more the 94,000 installs required for non-game app to reach the top of the charts.

This figure also represents an increase of 47% compared to the 118,000 median daily downloads required to top the charts back in 2016, Sensor Tower said.

median downloads no 1 google play

In part, this trend is due to the rise of hyper-casual gaming. So far in 2019, 28 games have reached the No. 1 position on the U.S. App Store, with hyper-casual games making up all but 4 of those. And of those four, only Harry Potter: Wizards Unite spent more than one day at the top of the charts. Meanwhile, hyper-casual games like aquapark.io and Colorbump 3D have spent 25 and 30 days at No. 1, respectively.

On Google Play, the median daily installs to reach the No. 1 position increased from 70,000 in 2017 to 116,000 so far in 2019, or 66% growth. Overall game downloads, however, decreased 16% from 646 million in Q1 2017 to 544 million in Q1 2019.

Similarly, 21 out of the 23 games that reached the top spot this year have been hyper-casual titles, like Words Story or Traffic Run.

Breaking the Top 10

While topping the charts has gotten easier for non-game apps over the years, breaking into the top 10 has gotten more difficult. Median U.S. daily installs for the No. 10 free non-game app increased 11% from 44,000 in 2016 to 49,000 in 2019.

median downloads top 10 ios

On Google Play, meidan daily installs for non-game apps fell nearly 50% from 55,000 median daily installs in 2016 to 31,000 in 2019.

For games, the No. 10 game’s spot on the App Store had 25,000 median daily installs in 2016 to 43,000 so far in 2019, and Google Play saw 26% growth from 27,000 to 34,000 during the same period.

median downloads top 10 google play

Categories making the Top 10

In terms of breaking into the top 10 by category, Photo & Video apps on the App Store present the most challenge. The category where YouTube, Instagram, TikTok and Snapchat reside saw a median daily amount of more than 16,000 downloads for the No. 10 app.

This was followed by Shopping (15,300 daily downloads for the No. 10 app), Social Networking (14,500), Entertainment (12,600), and Productivity (12,400).

On Google Play, Entertainment apps — like Hulu, Netflix and Bitmoji — need around 17,100 U.S. installs in a day to reach the top 10. This is followed by Shopping (10,800), Social (9,100), Music (8,200), and Finance (8000).

Beyond the U.S.

Outside the U.S., a non-game app needs approximately 91,000 downloads to reach the top 10 on the App Store in China — higher than the 49,000 installs needed in the U.S. For games, the U.S. is the most difficult to crack the top 10, with a median of 43,000 daily downloads for the No. 10 game.

median downloads top 10 by country ios

On Google Play, India required the most downloads to reach the top 10 with apps needing 256,000 downloads in a day and games needing 117,000 downloads.

median downloads top 10 by country google play

Of course, the App Store’s ranking algorithms — nor Google Play’s algorithms — rely on downloads alone to determine an app’s ranking. Apple takes into consideration downloads and velocity, among other undocumented factors. Google Play does something similar.

But these days, developers are more concerned with showing up highly ranked in app store searches than they are on top charts, where they’ll need to consider numerous other factors beyond downloads — like keywords, description, user engagement, and even app quality, among other things.

 

 


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8 million Android users tricked into downloading 85 adware apps from Google Play – gpgmail


Dozens of Android adware apps disguised as photo editing apps and games have been caught serving ads that would take over users’ screens as part of a fraudulent money-making scheme.

Security firm Trend Micro said it found 85 individual apps downloaded more than eight million times from the Google Play — all of which have since been removed from the app store.

More often than not adware apps will run on a user’s device and will silently serve and click ads in the background and without the user’s knowledge to generate ad revenue. But these apps were particularly brazen and sneaky, one of the researchers said.

“It isn’t your run-of-the-mill adware family,” said Ecular Xu, a mobile threat response engineer at Trend Micro. “Apart from displaying advertisements that are difficult to close, it employs unique techniques to evade detection through user behavior and time-based triggers.”

The researchers discovered that the apps would keep a record when they were installed and sit dormant for around half-an-hour. After the delay, the app would hide its icon and create a shortcut on the user’s home screen, the security firm said. That, they say, helped to protect the app from being deleted if the user decided to drag and drop the shortcut to the ‘uninstall’ section of the screen.

“These ads are shown in full screen,” said Xu. “Users are forced to view the whole duration of the ad before being able to close it or go back to app itself.”

When the app unlocked, it displayed ads on the user’s home screen. The code also checks to make sure it doesn’t show the same ad too frequently, the researchers said.

Worse, the ads can be remotely configured by the fraudster, allowing ads to be displayed more frequently than the default five minute intervals.

Trend Micro provided a list of the apps — including Super Selfie Camera, Cos Camera, Pop Camera, and One Stroke Line Puzzle — all of which had a million downloads each.

Users about to install the apps had a dead giveaway: most of the apps had appalling reviews, many of which had as many one-star reviews as they did five-stars, with users complaining about the deluge of pop-up ads.

Google does not typically comment on app removals beyond acknowledging their removal from Google Play.

Read more:


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Apple is under formal antitrust probe in Russia – gpgmail


Make way for another antitrust investigation into big tech. Step forward Russia’s Federal Antimonopoly Service (FAS), which has opened an official probe of Apple — following a complaint lodged in March by security company Kaspersky Labs.

Kaspersky’s complaint to FAS followed a change in Apple’s policy towards a parental control app it offers, called Kaspersky Safe Kids. Discussing the complaint in a blog post the security firm says Apple contacted it in 2017 to inform it that the use of configuration profiles is against App Store policy, even though the app had been on Apple’s store for nearly three years without it raising any objections. 

Apple told Kaspersky to remove configuration profiles from the app — which it says would require it to remove two key features that makes it useful to parents: Namely, app control and Safari browser blocking.

It also points out that the timing of Apple’s objection followed Apple announcing its Screen Time feature, in iOS 12 — which allows iOS users to monitor the amount of time they spend using certain apps or on certain websites and set time restrictions. Kaspersky argues Screen Time is “essentially Apple’s own app for parental control” — hence raising concerns about the potential for Apple to exert unfair market power over the store it also operates by restricting competition.

We’ve reached out to Apple for comment on the FAS investigation. The company referred Reuters to a statement it made in April about its policy towards parental control apps, following other complaints.

In the statement Apple says it removed several such apps from the App Store because they “put users’ privacy and security at risk” — calling out the use of what it described as “a highly invasive technology called Mobile Device Management” (MDM).

But Kaspersky claims its app does not, and never did, use MDM.

Following complaints and some press attention to Apple’s parental control apps crackdown), the company appears to have softened its stance on MDM for this specific use-case — updating the App Store Review Guidelines’ to allow using MDM for parental controls in limited cases.

Kaspersky also says that the Apple Developer Enterprise Program License Agreement “clarifies that the use of MDM-profiles and configuration profiles in applications for home users is only possible with the explicit written consent of Apple”.

However it argues that Apple’s updated rules and restrictions still “do not provide clear criteria allowing the usage of these profiles, as well as information on meeting the criteria, which is needed for obtaining written consent from Apple to use them”. Hence it’s not willing to drop its complaint yet.

It says it’s also continuing to prepare to file an antitrust complaint over the same issue in Europe — where a separate competition-related complaint was recently filed against Apple by the music service Spotify.

Kaspersky says now that only official written confirmation from Apple — of “the applicability of the new p.5.5. “App Store Review Guidelines” for Kaspersky Safe Kids for iOS” — will stay its complaint.

Russia’s FAS has shown itself to be relatively alacritous at handling big tech antitrust complaints — most notably slapping Google with an order against bundling its services with Android back in 2015, a few months after local search giant Yandex had filed a complaint.

It took the European Union’s competition regulator several more years before arriving at a similar conclusion vis-a-vis Google’s competition-blocking Android bundling.


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Facebook sues two app developers for click injection ad fraud – gpgmail


Facebook has filed lawsuits against two app developers accused of generating fraudulent revenue using the social media giant’s advertising platform.

The company announced the legal action in a blog post Tuesday.

“The developers made apps available on the Google Play store to infect their users’ phones with malware,” said Jessica Romero, director of platform enforcement and litigation. “The malware created fake user clicks on Facebook ads that appeared on the users’ phones, giving the impression that the users had clicked on the ads.”

The scheme uses a technique known as click injection, which relies on apps fraudulently generating ad clicks without the user’s knowledge to artificially inflate the amount of ad revenue. It’s a problem previously noted by security researchers. Often, developers create junk or easy-to-make apps which get downloaded millions of times, while in the background they’re clicking on invisible ads without the user’s knowledge.

Facebook said in this case two developers, LionMobi — based in Hong Kong, and JediMobi — based in Singapore — generated “unearned payouts” from the social media giant’s advertisement system.

By our count, the app developers have seen more than 207 million installs to date. The apps remain on Google’s app store. Google did not immediately comment.

The social media giant said it refunded impacted advertisers.

A Facebook spokesperson did not immediately respond to a request for comment.


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Apple rolls out Apple Card Preview to select users – gpgmail


Apple Card is getting its first group of public test users today. A limited amount of customers that signed up to be notified about the release of Apple Card are getting the ability to apply for the card in their Wallet app today — as well as the option to order their physical Apple Card.

I’ve been using the card for a few days on my own device, making purchases and payments and playing around with features like Apple Cash rewards and transaction categorization.

A full rollout of Apple Card will come later in August. It requires iOS 12.4 and up to operate.

The application process was simple for me. Portions of the information you need are pre-filled from your existing AppleID account, making for less manual entry. I had an answer in under a minute and was ready to make my first purchase instantly. I used it both online and in person with contactless terminals.

It…works.

The card on the screen has a clever mechanism that gives you a sort of live heat map of your spending categories. The color of the card will shift and blend according to the kinds of things you buy. Spend a lot at restaurants and the card will take on an orange hue. Shop for entertainment related items and the card shifts into a mix of orange and pink. It’s a clever take on the chart based spending category features many other credit cards have built into their websites.

As many have pointed out, if you’re the kind of person that maximizes your points on current cards towards super specific rewards, like travel miles, the rewards system of Apple Card will not feel all that impressive. This is by design. Apple’s aim on this initial offering was to provide the most representational and easy to understand reward metric, rather than to provide top of category points returns.

But it also means that this may not be the card for you if you’re a big travel points maximizer.

I am a points person, and I carry several cards with differing rewards returns and point values depending on what I’m trying to accomplish. Leveraging these cards has allowed me to secure upgrades to higher classes, first class flights for family members and more due to how much I travel. Getting to this point, though, required a crash course in points values, programs and a tight grip on what cards to use when. Shout out to TPG.

IMG 0677

You will not be able to leverage Apple’s card in this way as a frequent traveler. Instead, Apple decided on a (by comparison) transparent rewards methodology: cash back based on a percentage of your purchases in 3 categories.

Those categories are 3% on all purchases from Apple Stores, the App Store and Apple subscriptions, 2% daily cash on any Apple Pay purchase and 1% with the physical card either online or offline.

The cash rewards are delivered daily, and made available to you very quickly on your Apple Cash card balance. Usually in less than a day. You can then do an instant transfer to your bank for a maximum $10 fee or a 1-3 day transfer for free. This cashout is faster than just about any other cash back program out there and certainly way faster cash reward tallying than anyone else. And Apple makes no effort to funnel you into a pure statement credit version of cash back, like many other cards do. The cash becomes cash pretty instantly.

I could easily see the bar Apple sets here — daily rewards tallies and instant cashouts — becoming industry standard.

The card interface itself is multiples better to use than most card apps, with the new Amex apps probably coming the closest. But even those aren’t system level, requiring no additional usernames and passwords. Apple Card has a distinct advantage there, one that Apple I’m sure hopes to use to the fullest. This is highlighted by the fact that the Apple Card application option is present on the screen any time you add a new credit card or debit card to Apple Pay now. Top of mind.

The spending categories and clear transaction names (with logos in many cases) are a very welcome addition to a credit card interface. The vast majority of time with even the best credit card dashboards you are presented with super crappy list of junk that includes a transaction identifier and a mangled vendor ID that could or could not map directly to the name of the actual merchant you purchased from. It makes deciphering what a specific transaction was for way harder then it should be. Apple Card parses these by vendor name, website name and then whatever it can parse on its own before it defaults back to the raw identifier. Way easier.

IMG 0681

A note, during the setup process the card will ask you if you want it to be your payment default for everything Apple and will automatically attach to your Apple stuff like App Store and subscription payments. So keep an eye out for that and make a call. You will get 3% cash back on any apps you buy, of course, even if they’re third party.

The payments interface is also unique in that Apple is pushing very hard to help you not pay interest. It makes recommendations on how to pay chunks of your balance over time before you incur interest. It places 1-3 markers on the circle-shaped interface that show you how much you need to pay off minimum, minimum with no interest and in full. These markers are personalized a bit and can vary depending on balance, due date and payment history.

I really dug hard on how Apple Card data was being handled the last time I wrote about the service, so you should read that for more info. Goldman Sachs is the partner for the card but it absolutely cannot use the data it gathers on transactions via Apple Card for market maps, as chunks of anonymized data it can offer partners about spending habits or any of the typical marketing uses credit card processors get up to. Mastercard and Goldman Sachs can only use the data for operations uses. Credit reporting, remittance, etc.

And Apple itself neither collects nor views anything about where you shopped, what you bought or how much you paid.

And, as advertised, there are no fees with Apple Card.

One thing I do hope that Apple Card adds is an ability to see and filter out recurring payments and subscriptions. This fits with the fiscal responsibility theme it’s shooting for with the payments interface and it’s sorely lacking in most first party apps.

Some nice design touches beyond the transaction maps, the color grading that mirrors purchases and the far more readable interface is a pleasant metallic sheen that is activated on device tilt.

My physical card isn’t here yet so I can’t really evaluate that part of it. But it is relatively unique in that it is nearly featureless, with no printed number, expiration, signature or security codes on its surface.

The titanium Apple Card comes in a package with an NFC chip that allows you to simply tap your phone to the envelope to begin the process of activating your card. No phone numbers to call and, heavens forbid, no 1-800 stickers on the surface of the card.

I can say that this is probably the first experience most people will ever have with a virtual credit card number. The physical card has a ‘hard coded’ number that cannot be changed. You never need to know it because it’s only used in in-person transactions. If it ever gets compromised, you can request a new card and freeze the old one in the app.

For online purchases that do not support Apple Pay, you have a virtual card number in the Wallet app. You enter that number just as you would any other card number and it’s automatically added to your Safari auto-fill settings when you sign up for Apple Card.

The advantage to this, of course, is that if it’s ever compromised, you can hit a button to request an entirely new number right from within the app. Notably, this is not a ‘per transaction’ number — it’s a semi-permanent virtual number. You keep it around until you have an issue. But when you do have a problem, you’ve got a new number instantly, which is far superior to having to wait for a new physical card just to continue making online purchases.

Some banks like Bank of America and Citibank already offer virtual options for online purchases, and third party services like Privacy.com also exist. But this is the beginning of the mainstreaming of VCCs. And it’s a good thing.


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