After allegations that Apple secretly buys ads for subscription-based applications in order to collect more commissions, Apple has now said that this is a wrong characterization and that developers are fully aware of the ads it launches on their behalf.
Earlier today, we reported on the author’s article Forbes who claimed that the company “secretly” or “quietly” placed ads for subscription-based applications without their consent in order to increase its commission fee from in-app purchases in “forms of advertising arbitrage”.
Apple has now clarified that it has placed ads to promote products it has been distributing for five years, and those ads are clearly marked as from the App Store.
Apple has indicated that this is no different from resellers displaying ads for the products they sell and that this is a very standard business model. Apple has been granted conventional legal rights to advertise in this way in its contracts with developers.
Apple says the claim that it “secretly” or “quietly” buys ads for developers without their knowledge or consent is an obvious mischaracterization. On the contrary, the company says that it regularly engages in conversations with developers about the ads it places, and many developers express gratitude for this support.
Apple says it is committed to providing developers with the resources they need to be successful in the App Store. These resources include compilers, testing and debugging tools, technical support, SDKs, libraries, APIs, and more, but also include advertising inside and outside the App Store.
Apple’s advertising for developer applications, such as email, online ads and social media, generated over 70 billion impressions in 2020. The company also introduced over 130,000 applications on the App Store and various Apple channels, and currently spends on supporting more than 100 applications on all platforms such as Google, YouTube, Snapchat, Twitter and TikTok.
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