In Epic case, Apple might win the battle and lose the war

No matter who prevails in the Epic Games v. Apple app store antitrust trial, history may see it as just one skirmish in a wider war. Apple has a good chance of winning. Current antitrust laws—which are ancient—as well as decades of jurisprudence in U.S. courts make it very hard for plaintiffs to win antitrust cases. But Congress is now considering reigning in the monopoly power of companies like Apple through changes to antitrust laws or even through direct regulation of app marketplaces. Indeed, my sources in Congress say lawmakers are watching Epic v. Apple , which is expected to wrap up this week in a federal court in Oakland, California, with great interest. Both the House antitrust subcommittee (led by Democratic Congressman David Cicilline of Rhode Island) and the Senate antitrust subcommittee (led by Democratic Senator Amy Klobuchar of Minnesota), have held hearings on app distribution through Apple’s App Store and Google Play. During those hearings, app developers complained about the strict rules they must abide by in order to be listed in the App Store, which is virtually the only way developers can access the huge worldwide market of iOS device users. In the U.S., more than half of all mobile devices run iOS, and studies show iOS users spend far more money on apps and in-app purchases than other mobile users. Apple requires that apps use the App Store’s in-house payment system to sell goods or services within their apps, and it charges developers a commission of up to 30%. App developers are prohibited from selling their apps and many forms of digital services to iOS users any other way. Here’s the language from Apple’s own developer guidelines document: “Apps may not use their own mechanisms to unlock content or functionality, such as license keys, augmented reality markers, QR codes, etc. Apps and their metadata may not include buttons, external links, or other calls to action that direct customers to purchasing mechanisms other than in-app purchase.” Apple, of course, makes its own apps, such as Apple Music, and can give them better visibility within the App Store than competing apps from third-party developers. (Search for “Music” in the App Store, and Apple Music, not Spotify, is the top result.) Developers are urging Congress to pass a law that limits the “gatekeeper” power of companies running app stores. Epic complained of all of these things in the courtroom in Oakland but, at least in light of past court decisions, Apple has a compelling defense. Read More …

How Sears and Standard Oil paved the way for the age of Amazon

Despite Amazon’s undisputed centrality in the contemporary digital economy, a close look at its core business model reveals it to be surprisingly conventional. Before the invention of e-commerce, mail-order catalog companies such as Sears, Roebuck had accustomed American consumers to purchasing goods sight unseen from vendors with whom they communicated solely via information technology. Like Amazon, Sears, Roebuck neither manufactured goods nor owned inventory but functioned solely as information intermediary. Read More …

What makes a great builder? It’s the mission that matters

For more than three decades, iRobot has been a pioneer in the robotics and consumer electronics industries. It’s no exaggeration to say that our success is almost entirely due to the mission-driven builders who have created a culture that thrives on innovation. Through the years, iRobot has developed some of the world’s most important robots. The company inspired the first Micro Rovers used by NASA, revealed mysteries inside the Great Pyramid of Giza, and deployed the first ground robots used in combat by the U.S. Army, saving thousands of lives in Afghanistan and Iraq. Read More …

Here’s what’s new in Android 12, from big changes to subtle tweaks

With a personalized color scheme on the outside and a reinforced app-privacy structure on the inside, the next version of Android should at least avoid a common fate of some previous Android updates: being mistaken for one of its predecessors. Android 12 , previewed in detail on Tuesday at Google’s I/O developer conference, leads off with those changes to form and function. But the next edition of its mobile operating system bundles many less obvious—but still notable—changes, including some that didn’t get mentioned during the two-hour keynote that opened the online event. Material You While many operating systems have offered personalization features, Google’s concept aims to make customization an automatic feature, not a distraction for interface nerds. Android 12 will derive highlight and contrast colors for its interface by analyzing your screen wallpaper. If your own screen decor already matches the current Android palette, you should still notice how many onscreen elements will be less rectilinear. For example, Google has already advised developers of onscreen widgets to get ready for rounded corners . [Photo: courtesy of Google] New visual effects will extend to animations to convey more clearly what’s going on. For instance, scrolling to the end of an onscreen list will cause it to stretch up and down the screen, and pressing the power button to wake the screen will send light rippling across the display. Quick Settings The set of toggles for such functions as airplane mode (remember that?) that you can invoke by swiping deeply down from the top of the screen should look a lot different in Android 12. The tiles you see today will be replaced by larger panes that show more detail about the state of each function. Android 12’s Quick Settings will also fold in new features. Read More …

How two Southeast Asian superapps beat Uber at its own game

In 2009, while Uber’s cofounders were gearing up to launch, a cadre of young Asian entrepreneurs-to-be entered the MBA program at Harvard Business School. Out of that group came two ride-sharing startups that would evolve quite differently than their American cousins. The company now called Grab was conceived by Malaysian students Anthony Tan and Hooi Ling Tan (no relation) as their entry in a business-plan contest. They didn’t win—but later, they wound up out-Ubering Uber in burgeoning cities across the 10-country ASEAN region in Southeast Asia. Meanwhile, another classmate took a zigzag route to the top. Nadiem Makarim, working remotely with buddies back home in Indonesia, started Gojek as a side project while finishing his MBA. This ride-share app has branched into businesses from massage therapy to moviemaking. And just this week Gojek announced the largest business deal in Indonesia’s history, its merger with e-commerce giant Tokopedia. (Disclosure: Golden Gate Ventures is a small shareholder of Gojek via its acquisition of Ruma Mapan. We’ve also invested in Gojek’s spinout, GoPlay.) Both Gojek and Grab are now venture-funded decacorns. Each is headed for a dual IPO on New York and Asian exchanges. And they’re racing to dominate much more than ride-hailing on Southeast Asians’ mobile phone screens. Grab and Gojek each offer what hasn’t yet been seen in the U.S. market: a superapp combo, featuring a payment app that’s a potential gateway to selling anything people may wish to buy. Gojek’s Winding Road Gojek began modestly in 2010. At first it was a “minimum viable product” venture—a local, low-tech operation led on a part-time basis by its faraway founder. Read More …