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Google protests Apple's iPhone developers agreement
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Google protests Apple's iPhone developers agreement
SAN FRANCISCO
Wed Jun 9, 2010 2:44pm EDT
A photo of the Google Inc. logo is shown on a computer screen in San Francisco, California July 16, 2009.
Credit: Reuters/Robert Galbraith
SAN FRANCISCO (Reuters) - Google Inc said on Wednesday recent changes to Apple's developers agreement would effectively cripple Google's advertising tools for the iPhone, creating "artificial" barriers to competition.
ipad | Technology | Media
Apple changed the language of the agreement on Monday. As written, it appears to prohibit certain third-party ad agencies from collecting critical usage data from iPhone applications.
This would hamper rival ad agencies' ability to target their ads and make it more difficult to compete with Apple's own ad network, which is set to launch July 1.
"This change is not in the best interests of users or developers," Omar Hamoui, founder of mobile ad company AdMob, said in a blog post. AdMob was recently purchased by Google.
Hamoui said Google will raise its concerns with Apple, which has declined to comment on the new terms of its developers agreement.
"Artificial barriers to competition hurt users and developers and, in the long run, stall technological progress," Hamoui said.
AdMob recently disclosed that roughly one-third of the ads it served in April were for devices running the iPhone platform. The iPad and the iPod touch also use the software.
The initial language of Apple's new iPhone developers agreement, which emerged in April, prohibited data about app usage to be transmitted to any outside analytics companies, which help agencies target their ads.
Those rules rankled some app developers and generated questions from the Federal Trade Commission, one developer said.
The updated language -- which was first noted by the MediaMemo blog -- appeared to put in place significant new restrictions, particularly when it comes to Google.
It allows user data to be transmitted only to "an independent advertising service provider whose primary business is serving mobile ads," one that is not affiliated with "a developer or distributor of mobile devices, mobile operating systems."
This would effectively bar Google, which designed the Android mobile operating system and makes the Nexus One smartphone.
Google paid $750 million for AdMob. After holding the deal up for six months, the FTC approved it last month, saying Apple's entry into the mobile ad market would increase competition.
Apple purchased mobile ad company Quattro Wireless in January, after being outbid by Google for AdMob.
In April, Apple unveiled iAd, its own advertising network, which will sell and host ads on the iPhone platform. Apple said Monday it has already reeled in $60 million worth of commitments for mobile ads.
(Reporting by Gabriel Madway, editing by Maureen Bavdek)
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See All Comments (12) | Post Comment
Jun 09, 2010 3:08pm EDT
“It allows user data to be transmitted only to “an independent advertising service provider whose primary business is serving mobile ads,” one that is not affiliated with “a developer or distributor of mobile devices, mobile operating systems.”"
So wouldn’t this also prevent iAD from receiving the data as well? iAD is an Apple product. Or does Apple conveniently exempt themselves from the terms? Regardless, sounds like clearly anticompetitive behavior aimed directly at Google.
leonffs
Report As Abusive
Jun 09, 2010 3:36pm EDT
Smarten up and read some comments from http://forums.appleinsider.com/showthread.php?s=&threadid=110303
thor008u2
Report As Abusive
Jun 09, 2010 3:39pm EDT
I dub the ’10s the “Decade of Apple Anti-Trust”, sort of like the aughts was the decade of MS anti-trust. Let the hearings begin!
pacoder
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Jun 09, 2010 3:42pm EDT
Google, through AdMob, was spying on Apple and Apple’s customers by gathering information on them without their permission.
Apple is placing an end to this. Apple will only allow its own iAds or 3rd party ads from independent ad companies – those who are not part of Apple’s competitors. This prevents Apple’s competitors from using this information to improve their competing products (e.g. Android).
This is only fair. Apple doesn’t spy on Google or Microsoft.
Google doesn’t care about privacy so much. Just witness its spying on European customers for years.
jakeskatt
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Jun 09, 2010 3:44pm EDT
I wonder if google’s TOS on the android phone prohibits the same thing?
john77jr
Report As Abusive
Jun 09, 2010 3:52pm EDT
honestly I had figured this was going to happen or had happened already since Jobs was pretty honest when he first released iAds that this was going to be an Apple only situation – I mean, come on? Advertisers came to apple because the flash didn’t work, and Apple finally had advertisers coming directly to them. Now you get Apple, reaping 100% of all ad revenue generated on an iPhone/iPad, and the consumer still has to deal with pop-up’s and viruses (they’ll come in now that the ad window and door has been left wide open) that come with it.
I can’t wait!
XiroMisho
Report As Abusive
Jun 09, 2010 3:57pm EDT
There are thousands of iPhone developers using AdMob to earn a living! I bet they’ll all now dump working on apps for the iPhone and migrate to the Android developer platform. Apple is looking to enforce iPhone developers to use iAds instead of AdMob from here forward. Sneaky Apple! They’ll be sorry they messed with their own developers.
reuterspov
Report As Abusive
Jun 09, 2010 4:01pm EDT
Apple should learn from MS that being the big boy doesn’t make you right – and the consumer changes pretty quickly. Just make it fair and compete to stay on top – it’s what made you. Trying to torpedo other companies will bite them.
cubbyboy
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Jun 09, 2010 4:07pm EDT
I can’t see iAds appearing on Android anytime soon…
levivel
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See All Comments (12)
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