Mark Zuckerberg says Apple charges 'monopoly rents' in App Store


  • Facebook CEO Mark Zuckerberg said Apple has a “stranglehold” on the apps that are allowed on iPhones and accused the company of charging “monopoly rents,” according to BuzzFeed News.
  • Zuckerberg made the remarks at a company-wide meeting on Thursday.
  • The comments come as tech giants like Apple and Facebook have come under increased scrutiny over antitrust concerns.
  • For Apple, its App Store policies and commission rates have been at the center of accusations regarding anticompetitive behavior.
  • Facebook has also recently clashed with Apple’s policies in other ways too; the company said Apple blocked an update that mentioned its controversial 30% commission rate. 
  • Visit Business Insider’s homepage for more stories.

Facebook CEO Mark Zuckerberg is calling out Apple’s controversial App Store policies, a move that comes just as the iPhone maker has been under increased scrutiny over its commission rates and app approval processes.

Zuckerberg made the comments in a company-wide meeting on Thursday, according to BuzzFeed News’ Pranav Dixit and Ryan Mac. 

“[Apple has] this unique stranglehold as a gatekeeper on what gets on phones,” Zuckerberg said according to BuzzFeed News.

The Facebook CEO also accused Apple of charging “monopoly rents” and blocking innovation and competition through its App Store. The comments came in response to a question about Apple restricting gaming apps.

Facebook and Apple did not immediately respond to Business Insider’s request for comment.

The remarks come at a contentious time for both Apple and Facebook, as both companies have been scrutinized over antitrust concerns. The CEOs of Apple, Facebook, Google, and Amazon recently testified before Congress to address concerns about whether their size and influence hampers competition in the industry.

For Apple, it’s the App Store that’s been in the spotlight when it comes to accusations of anticompetitive behavior. Developers have long complained that the 30% commission Apple charges makes it difficult to price their offerings competitively.

But that sentiment came to a head earlier this month when “Fortnite” maker Epic Games violated Apple’s rules by trying to circumvent the company’s in-app payment system. Apple removed “Fortnite” from the App Store, and Epic filed a lawsuit against Apple in response. Apple also revoked Epic’s developer account, but a California judge recently blocked the decision to remove the game maker’s access to its developer tools.

Now, Zuckerberg is taking a stance on Apple’s controversial App Store rules, according to the report.  The comments also come as Facebook has recently clashed with Apple in other ways, too. Apple blocked Facebook’s attempt to tell its users that the company will be taking up to a 30% cut of transactions coming from a new online events feature, according to Reuters.

The social media giant also published a blog post recently detailing how Apple’s iOS 14 mobile operating system could impact the ability of publishers to monetize through its Audience Network. Advertisers will no longer be able to track users through their unique device identifier without their consent — a change Apple is implementing to improve user privacy that in turn makes it difficult to deliver targeted ads.

Apple has not directly taken any shots at Facebook. But the company has repeatedly emphasized that it does not have anything to gain from gathering personal data about its customers.

“You are not our product,” Apple CEO Tim Cook said last year to ABC News. “Our products are iPhones and iPads. We treasure your data. We wanna help you keep it private and keep it safe.”

Zuckerberg also isn’t the only company to weigh in on the state of today’s mobile app stores. When speaking at a virtual Politico event last month, Brad Smith, Microsoft’s president, recently called for regulators to more closely examine how app stores are being governed.

Source: Mark Zuckerberg says Apple charges ‘monopoly rents’ in App Store

By leadicicco@businessinsider.com (Lisa Eadicicco)

Techylawyer and its authors do not claim to have written this article, we acknowledge the works of the original author

LEAVE A REPLY

Please enter your comment!
Please enter your name here