adobe

The unveiling of the iPhone 4 raised the hopes many Apple fanboys and non fanboys alike. But Apple’s new Mobile Advertising Rules raised many eyebrows. Seemingly pointed at keeping competitors(read : Google and Admob) out of the Mobile Advertising race on iOS devices, the new rules are facing heavy criticism and some additional interest from the FTC. Here is the section in question : ‘ 3.3.9 You and Your Applications may not collect, use, or disclose to any third party, user or device data without prior user consent, and then only under the following conditions: – The collection, use or disclosure is necessary in order to provide a service or function that is directly relevant to the use of the Application. For example, without Apple’s prior written consent, You may not use third party analytics software in Your Application to collect and send device data to a third party for aggregation, processing, or analysis. – The collection, use or disclosure is for the purpose of serving advertising to Your Application; is provided to an independent advertising service provider whose primary business is serving mobile ads ( for example, an advertising service provider owned by or affiliated with a developer or distributor of mobile devices, mobile operating systems or development environments other than Apple would not qualify as independent ); and the disclosure is limited to UDID, user location data, and other data specifically designated by Apple as available for advertising purposes. ’ The key parts are in bold. This one section has several implications for the mobile advertising industry. Affect on Google/Admob It is ironic that Google’s acquisition of Admob, which until a few weeks ago was being investigated by the FTC, is now playing the part of the victim. The new rules, if enforced(I see no reason why they won’t be) could shut out Admob from the iOS ecosystem. Ok, maybe Android is gaining on the iPhone, but it’s still not a piece of the pie that anyone can do without. Infact, here is a picture of unique devices on Admob’s own network for April 2010. Doesn’t bode well for Admob does it? Infact Admob founder and CEO Omar Hamoui responded on their offical blog saying that this move could hurt the Ad network and developers too. This isn’t particularly new for Admob, ever since they chose to go with Google instead of Apple, Apple has started to push it out of the iPhone ecosystem. Infact, the previous version of section 3.3.9 seemed to in place block rival Ad networks by keeping developers from sharing vital information with them. Incidentally, as of March 2010, iPhoneOS share on Admob fell below 50% for the first time. Affect on ‘Independent Ad networks’ While in the short term, this may seem like a time to rejoice for the several independent and start up mobile Ad networks to rejoice. They stand to gain a significant amount of market share. It does pose a problem in the long run. By stressing on their independence Apple has significantly impacted their valuation/appeal by ruling out any mobile software/hardware maker, telecommunications company etc as potential buyers. Even those not excluded by the current terms will be wary because, who knows, Apple may suddenly wake up and decide to change the rules. Strong enough case? The debate that’s raging is whether the FTC can actually build up a strong enough anti-trust case against Apple. While the move is definitely aimed at blocking Admob, it is not necessarily an abuse of their monopoly. Just ask the ‘independent’ Ad networks. They are ‘thrilled’ about it. Some say that Apple is well within their right to control their products. Well in isolation it may not be ‘illegal’ but if you look at the larger picture… Other questionable actions Apple’s  mission to rid the world of Flash is probably as tragic as it is ironic. In April, Apple sucker punched Adobe just days before the release of CS5 by changing it’s SDK terms by banning “applications that link to Documented APIs through an intermediary translation or compatibility layer.” A feature that was expected to allow developers to port Flash applications for use on the iPhoneOS was effectively rendered useless. His Steveness went on justify Apple’s actions in an exhaustive blog post but this wasn’t enough to convince the FTC which has been contemplating a probe into the Flash issue. The US Department of Justice is said to be investigating Apple for its supposed high handedness in dealing with music labels. An article in Billboard magazine reported that Apple was forcing labels not to participate Amazon’s MP3 Daily Deal. Going as far withdrawing marketing support in some cases. Apple’s iTunes is the market leader when it comes to online music with almost 70% of the market. This could definitely be seen as a move to thwart Amazon’s (a distant second) growth in this space. And you could almost see this coming when Apple ended the books business in a big way with the arrival of the iPad. After much wrangling Amazon had fixed the price of books at $9.99. Along comes Apple and decides best selling titles should go for higher. Result : Publishers begin raising their prices and Amazon begins to lose control over prices. Again in isolation, this does not seem like a bad thing but it does seem like Amazon is being made a target. So it turns out that (not for corollary in the last sentence) the Texas Attorney General’s Office has taken an interest in this episode. Being the No.1 Tech Company has its perks but it has enough downsides too. Just ask Bill and Steve over at Microsoft Do you think Apple is right? Or just acting out of spite? Against Google? Amazon? Let us know your thoughts. Related Posts The ‘Free’ and ‘Fare’ Internet! WATShow With Mahesh Narayan Country Manager AdMob On Mobile Advertising & Their Plans For India Now, More Results To “Flash” In Your Web Search Inmobi Expands To US Markets ‘Windows Out, Mac In’ – Says Google Social Media Course – Mumbai – On 12th JUNE. Log on to Social Media Course and Register Now!