Monday, 17 August 2020

Epic files an injunction against Apple over threat to revoke all developer access

After taking a stand against Apple’s hefty cut of the money developers make through the App Store, Fortnite maker Epic Games shows no signs of backing down. The company filed an injunction against Apple in the U.S. District Court for California’s Northern District on Monday after it received a letter notifying Epic that its developer accounts and access to developer tools would be cut off at the end of next week.

In the injunction, Epic accuses Apple of “retaliation” and reasserts its mission to disrupt what it views as Apple’s monopoly over its mobile software market. The company cites concerns that Apple’s actions against its developer access will damage its business beyond Fortnite, particularly its work on Unreal Engine, the prominent game engine it licenses to third party software makers.

“[Apple] told Epic that by August 28, Apple will cut off Epic’s access to all development tools necessary to create software for Apple’s platforms—including for the Unreal Engine Epic offers to third-party developers, which Apple has never claimed violated any Apple policy,” the injunction states.

“Not content simply to remove Fortnite from the App Store, Apple is attacking Epic’s entire business in unrelated areas. Epic is likely to succeed on the merits of its claims, but without an injunction, Epic will be irreparably harmed long before final judgment comes.”

Epic ran afoul of both Apple and Google’s policies last week when it added a discounted direct payment option into its apps, essentially creating a workaround for Fortnite players to make purchases in the game without an intermediary. Knowing that Apple would act quickly to pull Fortnite from the Apple Store for violating its rules, Epic had a PR campaign against the tech giant prepared, launching an antitrust suit and a Fortnite-themed spoof on Apple’s iconic 1984 commercial shortly after the news broke.

When reached by TechCrunch, Apple did not provide additional comment on the latest development, pointing us back to its prior statement that the company will “make every effort to work with Epic to resolve these violations” and to get Fortnite back in the App Store.

The full text of Epic’s injunction to block Apple’s actions is available here.



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Apple expands its independent repair program to Mac, after US antitrust investigation examined company’s repair policies

Apple is expanding its program that provides parts, resources and training to independent repair shops to now include support for Mac computers. The repair program was first announced last fall, with the goal of making it easier for consumers to repair their out-of-warranty iPhones by allowing them to use third-party shops, including small businesses, that would now have access to official repair parts and other tools.

The program was meant to complement Apple’s existing network of over 5,000 Apple Authorized Service Providers, like Best Buy, which handle both in- and out-of-warranty repairs. To some extent, the program arose from consumer demand. Many iPhone users were turning to unauthorized repair shops for a variety of reasons — perhaps the shop was closer to their home, could fix their device more quickly, or offered more affordable repairs, for example. But this choice could result in an uneven consumer experience as the shops were locked out from using official Apple parts.

Since its U.S. launch, the independent repair shop program expanded to over 140 businesses and over 700 new locations. This summer, Apple announced the program would now expand internationally as well, to both Europe and Canada.

To date, however, the program was only focused on iPhone repairs — not Mac. Going forward, these repair shops and others that qualify will be able to access Apple-genuine tools, repair manuals, diagnostics, official parts, and other resources they need to perform common out-of-warranty repairs on Macs, too. The program is free to sign up for and the repair training is also free, Apple says.

Reuters first reported the news of the program’s expansion. Apple also confirmed the details to TechCrunch, noting that the company believes the safest and most reliable repair is one that’s handled by a trained technician using official Apple parts. The company said, too, it wants consumers to feel confident that their repairs are being done correctly.

The news of the program’s expansion is timely, given that Apple’s stance on consumers’ “right to repair” their own devices is one of the many topics under investigation by the U.S. House Antitrust Subcommittee.

The subcommittee had last month held a hearing where it asked Apple CEO Tim Cook about his company’s position on a variety of matters, like its App Store and commission structure, for example. Though not a major focus of the Congressional hearing itself, the documents collected as part of the subcommittee’s investigation into Apple included internal emails that showed how the company was conflicted about its repair program and the Right to Repair legislation, which Apple had lobbied against for years.

In one email, Apple execs weighed telling a reporter about its then-forthcoming Genuine Parts Repair program to demonstrate its commitment to more consumer-friendly repair policies, the documents revealed, In others, Apple execs discussed how repair manuals had been published without clearance, indicating a lack of a cohesive strategy around its approach to repair policies.

By further expanding its independent repair program to now include the Mac, Apple benefits from not only better serving customers by expanding access to genuine parts, but also from redirecting the focus of the antitrust investigation away from this particular topic, at least, if not the others.

 



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Friday, 14 August 2020

Birmingham-based Help Lightning raises $8 million for its remote training and support tools

In the four years since Help Lightning first began pitching its services out of its Birmingham, Ala. headquarters, the company has managed to sign up 100 customers including some large Fortune 500 companies like Cox Communications, Siemens, and Boston Scientific.

Now, with an additional $8 million in financing from Resolve Growth Partners, the company is hoping to expand its sales and marketing efforts and continue to refine its product.

The technology was initially invented by Bart Guthrie, a neurosurgeon at the University of Alabama at Birmingham, who wanted a way to improve telepresence technologies so he could assist with remote surgeries.

What Guthrie developed was a technology that could merge video streams to that experts could remotely monitor, manage, and assist in everything from service repairs to surgery.

“Think of it as a video call on steroids,” says Gary York, the company’s chief executive officer. A serial entrepreneur, York was brought on board by Guthrie to help commercialize the technology four years ago.

The technology works on any android or iOS device and is accessed through a mobile browser. The company now boasts over 100 customers including Cox, Canon, Unisys, and Boston Scientific. And its usage has soared since the advent of the pandemic, according to York.

“We saw call volume quadruple,” he said.

For instance, Cox Communications uses the technology to provide virtual trouble shooting to replace in-home service visits for customers. At Siemens, service technicians who fix medical imaging and lab diagnostic equipment can use the Help Lightning to link up with experts to troubleshoot fixes in real time. York would not comment on pricing, but said that the company provides custom quotes based on usage.

“After evaluating the virtual expertise software market for over a year, our diligence is clear that Help Lightning has built a highly differentiated solution that is valued by its customers” said Jit Sinha, co-founder and Managing Director from Resolve, in a statement earlier this week. “Help Lightning has a tremendous opportunity to power the success of this rapidly emerging market. We’re thrilled to be partnering with Gary York and his talented team.”

 



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Facebook pushes back against Apple’s App Store fees

Facebook joined the growing ranks of companies publicly complaining about the 30% fee that Apple collects on payments made through its App Store.

Those complaints came midway through a blog post about the social network’s new feature supporting paid online events. Facebook said that to support struggling businesses, it won’t be collecting any fees on those events, at least for the next year, which means that those businesses keep 100% of payments on the web and on Android.

But Facebook said that won’t be the case on iOS, due to App Store fees, and it took aim at Apple with surprisingly direct language (at least, direct for a corporate blog post):

We asked Apple to reduce its 30% App Store tax or allow us to offer Facebook Pay so we could absorb all costs for businesses struggling during COVID-19. Unfortunately, they dismissed both our requests and SMBs will only be paid 70% of their hard-earned revenue. Because this is complicated, as long as Facebook is waiving its fees, we will make all fees clear in our products.

Facebook Online Events

iOS purchase flow on left, Android purchase flow on right. Image Credits: Facebook

To that end, the post includes screenshots of how the events payment flow will look on iOS and Android. On Android, it says, “Facebook doesn’t take a fee from this purchase,” while on iOS, it says, “Apple takes 30% of this purchase.”

Facebook said this language is included in the app update “which we submitted to Apple today for approval” — suggesting that there’s a possibility that the update won’t be approved.

This comes just about 24 hours after Fortnite was removed from the App Store, after Epic Games introduced direct payments into its hit title. It seemed like Epic was intentionally trying to provoke a fight, with the company quickly announcing a lawsuit against Apple and releasing a short in-game video parodying Apple’s famous 1984 commercial, with Apple cast as the villain. (The game publisher is in a similar battle with Google and Android.)

While Apple’s 30% fee has been around for as long as the App Store itself, the issue came to the forefront earlier this summer after Basecamp got into a public feud with the company over its subscription email app Hey, for which the developer tried to circumvent App Store fees by only accepting subscription payments on its website.

Apple’s Phil Schiller told us at the time that the controversy was not prompting the company to reconsider any of its rules, which he said were designed for a better app experience — to avoid situations where “you download the app and it doesn’t work.”



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Facebook pushes back against Apple’s App Store fees

Facebook joined the growing ranks of companies publicly complaining about the 30% fee that Apple collects on payments made through its App Store.

Those complaints came midway through a blog post about the social network’s new feature supporting paid online events. Facebook said that to support struggling businesses, it won’t be collecting any fees on those events, at least for the next year, which means that those businesses keep 100% of payments on the web and on Android.

But Facebook said that won’t be the case on iOS, due to App Store fees, and it took aim at Apple with surprisingly direct language (at least, direct for a corporate blog post):

We asked Apple to reduce its 30% App Store tax or allow us to offer Facebook Pay so we could absorb all costs for businesses struggling during COVID-19. Unfortunately, they dismissed both our requests and SMBs will only be paid 70% of their hard-earned revenue. Because this is complicated, as long as Facebook is waiving its fees, we will make all fees clear in our products.

Facebook Online Events

iOS purchase flow on left, Android purchase flow on right

To that end, the post includes screenshots of how the events payment flow will look on iOS and Android. On Android, it says, “Facebook doesn’t take a fee from this purchase,” while on iOS, it says, “Apple takes 30% of this purchase.”

Facebook said this language is included in the app update “which we submitted to Apple today for approval” — suggesting that there’s a possibility that the update won’t be approved.

This comes just about 24 hours after Fortnite was removed from the App Store, after Epic Games introduced direct payments into its hit game. It seemed like Epic was intentionally trying to provoke a fight, with the company quickly announcing a lawsuit against Apple and releasing a short in-game video parodying Apple’s famous 1984 commercial, with Apple cast as the villain. (The game publisher is in a similar battle with Google and Android.)

While Apple’s 30% fee has been around for as long as the App Store, the issue came to the forefront earlier this summer after developer Basecamp got into a public feud with the company over its subscription email app Hey. Apple’s Phil Schiller told us at the time that the controversy was not prompting the company to reconsider any of its rules.



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Thursday, 13 August 2020

Daily Crunch: Apple removes Fortnite from the App Store

Epic Games takes on Apple, Instagram fixes a security issue and Impossible Foods raises $200 million. This is your Daily Crunch for August 13, 2020.

The big story: Apple removes Fortnite from the App Store

The controversy over Apple’s App Store policies has expanded to include Epic Games and its hit title Fortnite. The company introduced a direct payment option for its in-game currency on mobile, leading Apple to remove the app for violating App Store rules.

“Epic enabled a feature in its app which was not reviewed or approved by Apple, and they did so with the express intent of violating the App Store guidelines regarding in-app payments that apply to every developer who sells digital goods or services,” Apple said.

Epic, meanwhile, said it’s taking legal action against Apple, and that the game’s removal is “yet another example of Apple flexing its enormous power in order to impose unreasonable restraints and unlawfully maintain its 100% monopoly over the iOS In-App Payment Processing Market.”

The tech giants

Bracing for election day, Facebook rolls out voting resources to US users — The hub will centralize election resources for U.S. users and ideally inoculate at least some of them against the platform’s ongoing misinformation epidemic.

Instagram wasn’t removing photos and direct messages from its servers — A security researcher was awarded a $6,000 bug bounty payout after he found Instagram retained photos and private direct messages on its servers long after he deleted them.

Slack and Atlassian strengthen their partnership with deeper integrations — At the core of these integrations is the ability to get rich unfurls of deep links to Atlassian products in Slack.

Startups, funding and venture capital

Impossible Foods gobbles up another $200 million — Since its launch the plant-based meat company has raised $1.5 billion from investors.

Omaze raises $30 million after expanding beyond celebrity campaigns — The Omaze model has shifted away from celebrity-centric campaigns to include fundraisers offering prizes like an Airstream Caravel or a trip to the Four Seasons resort in Bora Bora.

We’re exploring the future of SaaS at Disrupt this year — We’re bringing Canaan Partners’ Maha Ibrahim, Andreessen Horowitz’s David Ulevitch and Bessemer Venture Partners’ Mary D’Onofrio together to help explain how the landscape has changed.

Advice and analysis from Extra Crunch

How to get what you want in a term sheet — Lior Zorea discusses the reality of term sheets.

Five success factors for behavioral health startups — Courtney Chow and Justin Da Rosa of Battery Ventures argue that behavioral health is particularly suited to benefit from the digitization trends COVID-19 has accelerated.

Minted.com CEO Mariam Naficy shares ‘the biggest surprise about entrepreneurship’ — Naficy got into the weeds with us on topics that founders don’t often discuss.

Everything else

Digital imaging pioneer Russell Kirsch dies at 91 — It’s hard to overstate the impact of his work, which led to the first digitally scanned photo and the creation of what we now think of as pixels.

AMC will offer 15-cent tickets when it reopens 100+ US theaters on August 20 — The theater juggernaut announced plans to reopen more than 100 theaters in the U.S. on August 20.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.



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Epic Games launches a campaign (and lawsuit) against Apple

Epic Games is launching an all-out campaign against Apple and its App Store rules.

Thursday morning, Epic Games introduced a new payment mechanism through a server-side update that allowed gamers to purchase Fortnite’s in-game currency directly, allowing the app to bypass Apple’s in-app purchase framework and the substantial cut that Apple takes. Apple quickly acted in banning the app from the App Store.

Apple soon released a statement:

Epic enabled a feature in its app which was not reviewed or approved by Apple, and they did so with the express intent of violating the App Store guidelines regarding in-app payments that apply to every developer who sells digital goods or services.

The ban was an action Epic Games was ready for.

The company soon shared that they were taking legal action against Apple, alleging that they were abusing their market position, saying in part that “Apple’s removal of Fortnite is yet another example of Apple flexing its enormous power in order to impose unreasonable restraints and unlawfully maintain its 100% monopoly over the iOS In-App Payment Processing Market.”

Minutes later, Epic Games broadcast a short video inside Fortnite Party Royale, presenting a spin on Apple’s iconic “1984” commercial. On-screen text declared, “Epic Games has defied the App Store Monopoly. In retaliation, Apple is blocking Fortnite from a billion devices. Join the fight to stop 2020 from becoming ‘1984’. #FreeFortnite”

Any legal action against Apple on monopolistic grounds is going to be an uphill battle given the narrow (relatively speaking) focus of the suit, especially given the fact that Apple CEO Tim Cook has already spoken to congressional anti-trust officials who didn’t seem to deliver any knockouts at the recent Zoom hearings. While the legal efforts might be a challenge, Epic Games wields major influence over the 350 million users of Fortnite, and gamers have proven particularly apt at launching campaigns against companies and coming out on top.

This saga comes just days after Apple attracted criticism for denying Microsoft xCloud, a cloud game-streaming application, from the App Store.



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