Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Mobile ad wars: U.S. regulators looking into Apple's new terms

By | June 10, 2010, 10:38am PDT

Summary: U.S. regulators are eyeing mobile advertising again - but this time it’s Apple, not Google, that’s on the government’s radar over a change in terms of app development.

When federal regulators in Washington approved Google’s acquisition of AdMob, they did so largely because Apple’s arrival in the game - with its new iAds business - created a competitive environment in mobile advertising.

But just a few weeks later, regulators are reportedly eyeing the mobile ad business again - but this time it’s Apple on the hot seat. According to a Financial Times report, regulators are interested in the change of terms that Apple has imposed on developers regarding advertising on apps developed for its products.

Earlier this week, Google-owned AdMob challenged the change of language in Apple’s iOS terms because, as written, the terms “prohibit app developers from using AdMob and Google’s advertising solutions on the iPhone.” The company argued that the change “threatens to decrease - or even eliminate - revenue that helps to support tens of thousands of developers” because it limits their choice of how best to make money.

Aside from whatever Washington might do on this matter, Apple clearly wants to keep its developer community happy. Case in point: at the developer’s conference keynote this week, Steve Jobs made a point of addressing the company’s app review and approval process, painting a picture of how their reviewers do a good job of getting through the thousands of app submissions in a timely manner and that only those apps that don’t work are the ones that get denied.

What he didn’t address was the extended waits or lack of explanations that developers complain about when dealing with the company. One of them, appsfire.com, this morning finally threw up its hands and surrendered to Apple’s waiting game tactics.

In a blog post titled, “Apple, you win: we’re pulling out of the app store. for now,” the company blasts Apple for avoiding them for the past 56 days for an update to a previously-approved app, one that is losing interest among its users because it desperately needs an update. In the blog post, which started with a “Dear Apple Inc.,” the company writes:

Your app-roval process is full of holes; you have approved Appsfire v1.0 last August and wished you hadn’t because almost no one had any real clue about discoverability issues back then - indeed, we were the very first to address this issue in an app. Now you know what’s at stake, so you’ve locked-down every aspect of the SDK ToS. Which is probably why you wouldn’t write anything to us for 56 days re: Appsfire v2.0, despite our numerous calls, emails, and high level contacts (period during which you had no problem approving similar apps). Was your intent to shut us down by playing the waiting game until the legal team had caught up? The problem remains, in fact we don’t even know what the problem might be since you are not talking to us. So now, we’re doing you a favor. We’re pulling Appsfire v1.0 so that you don’t have to. Besides, we have so much content now that this old v1.0 is choking on it; but you won’t let us update it to optimize the user experience. We care about our users, and like you, we go to great lengths to ensure the best experience.

The problem, of course, is that appsfire is only one developer of one app. So, if they walk away, it’s no big deal, right? But I can’t imagine that appsfire is the only developer feeling this way. I’ve heard these stories of this same sort of waiting game.

And clearly, so has Steve Jobs and other developers. Otherwise, why would he make a point of bringing it up in front of 5,000 of them during his keynote speech this week?

Kick off your day with ZDNet's daily e-mail newsletter. It's the freshest tech news and opinion, served hot. Get it.

Topics

Sam has been a technology and business blogger for more than 18 years.

Disclosure

Sam Diaz

Sam Diaz has nothing to disclose.

Biography

Sam Diaz

Sam has been a technology and business blogger, reporter and editor at ZDNet, the Washington Post, San Jose Mercury News and Fresno Bee for more than 18 years. He's a member of the National Association of Hispanic Journalists and a graduate of California State University, Fresno.

65
Comments

Join the conversation!

Just In

RE: Mobile ad wars: U.S. regulators looking into Apple's new terms
tomlin21-24319035676893835085146735905770 11th Oct
I used to be amazingly delighted to look out this blog page.I sought after to many thanks for this fantastic scan!! I positively enduring almost each and every modest little bit of it and I've you nfljerseys bookmarked to appearance at out new things you publish.
0 Votes
+ -
I'm so happy about this!!!
NonZealot 10th Jun 2010
But just a few weeks later, regulators are reportedly eyeing the mobile ad business again - but this time it?s Apple on the hot seat.

Excellent news!! Apple is acting anti-competitively here and need to be punished. Actually, they need to be split up into 20 different companies but one thing at a time. happy
0 Votes
+ -
I would rather see consumers get informed and stop buying Apple crap ...
hamobu-22333136139518773481685514128812 10th Jun 2010
... but that's not going to happen. To understand all the ways Apple cheats their customers you need to have unique bland of knowledge of technology and economics.
0 Votes
+ -
Only those who need things simplified should.

Example, my nephew was a pro Apple fan. He didn't want to know a thing about Android..Well his mother gave him an Evo last week, he now is happy camper and he won't go back to Apple ever again. It was just hilarious. Most Apple fans swear by their product, but once a smart user uses the real deal, they never look back.

Then there is his brother, who just graduated from an Ivy Liberal Arts School. Now for him the 4GS is just right, simple enough for him to use. Not that he isn't bright, otherwise he would not have graduated with honors, just that he isnt oriented in the same manner as his brother, he doesn't like complicated stuff, he just likes music.. so yeah he is a prime target for Apple products.

That's jest of it.
0 Votes
+ -
Cause they know it can become a wasted effort. That's why most will eventually migrate over to Android, like we have and yeah, never regretted it.

Now many Developers will see that staying in Apples ecosystem is bad business.

True Google can pull the rug under you, like they have with Waze, but then you just refocuse your efforts and come up with something like Layar virtual reality, Google wont let your efforts go to waste.

Apple does, so does who develop for Apple with their hands tied, no rightly so that they can be left out in the cold if Apple wishes to do so. That's monopoly tactics at its worst and Apple sooner than later will get hit with a larger fine than Microsoft ever has. Remember Europe doesn't like this behavior, nor do other countries. The US may tolerate it, but its WRONG.
@hamobu
First, considering the grammar and spelling errors in your one sentence post, you are not in a position to be criticising other people's intelligence. Second, please direct your ill-informed ad hominem attacks at the thousands of research physicists, geneticists, bioengineers, security researchers, and architects (fields where OSX predominates) who use Apple products every day. I am sure they would be interested to know that they are stupid.

And as a long time Apple user, I'll pit my neuroscience degree against anything you have to throw at it.
0 Votes
+ -
RE: Mobile ad wars: U.S. regulators looking into Apple's new terms
hamobu-22333136139518773481685514128812 11th Jun 2010
@DeusExMachina

First, considering the grammar and spelling errors in your one sentence post,

A grammar Nazi, huh?

you are not in a position to be criticising other people's intelligence.

Actually I was not criticizing other people's intelligence. Maybe you should focus more on reading comprehension rather than grammar. BTW, you misspelled criticizing

And as a long time Apple user, I'll pit my neuroscience degree against anything you have to throw at it.

Neuroscience huh? Well it's not exactly rocket science, now is it?

I think you should have your left parital lobe checked out for that reading comprehension problem you seem to be having.
0 Votes
+ -
@hamobu
"A grammar Nazi, huh?"

Call it what you will, you are in no position to be casting aspersions about other's intelligence. Case in point:

"Maybe you should focus more on reading comprehension rather than grammar. BTW, you misspelled criticizing"

Maybe you should focus on both, you ignoramus. I most certainly did NOT misspell "criticise." The language is called "ENGLISH." It is the language spoken in ENGLAND, where such words are CORRECTLY spelled with "s" NOT Z.

"Neuroscience huh? Well it's not exactly rocket science, now is it?"

No, it isn't. First, rocket science is not science, it is engineering, second, if you are going to try to claim that neuroscience is somehow subordinate, you really are a fool.

"I think you should have your left parital[sic] lobe checked out for that reading comprehension problem you seem to be having."

You just make it too easy! First, the word is "parietal." Second, it is not the parietal lobe that is mostly indicated in comprehension, it is the occipital (and of course the frontal) lobe, The parietal lobe serves to integrate sensory stimuli, and as such plays a roll in reading, but not to the extent you imply. It has much more to do with the sensory processing.

Not that any of that matters, as the above is more than sufficient to show you to be the one with the issues in the present conversation.
@hamobu-22333136139518773481685514128812 Market failed in many significant ways outside of government. If anything, it's deregulation and the idea that market can police itself that led to this. If parts of Glass-Steagel act - for example - were not repealed by Grahm-Leach-Bliley act, this crisis would have been much less severe. The market failed to vet loan applicants, price and rate mortgage backed securities, and it failed to insure these securities against default with the credit default swap. In fact the reason why Credit default swap is called a swap and not insurance is that if you call it insurance than you would need to follow insurance rules which would require having a reserve for liability.
0 Votes
+ -
I agree, smart consumerorjin krem
ekoaldiva Updated - 14th Jun
Cause they know it can become a wasted effort. That's why most will eventually migrate over to Android, like we have and yeah, never regretted it.

Now many Developers will see that staying in Apples ecosystem is bad business.

True Google can pull the rug under you, like they have with Waze, but then you just refocuse your efforts and come up with something like Layar virtual reality, Google wont let your efforts go to waste.

Apple does, so does who develop for Apple with their hands tied, no rightly so that they can be left out in the cold if Apple wishes to do so. That's monopoly tactics at its worst and Apple sooner than later will get hit with a larger fine than Microsoft ever has. Remember Europe doesn't like this behavior, nor do other countries. The US may tolerate it, but its WRONG. pembe maske energy balance oyna oyunu moliva
  • Flagged
@hamobu-22333136139518773481685514128812 Similar thing happened in the great depression in 1930's only with stock market rather than mortgage market. Libertarians like to blame that one on federal reserve and government, but truth is that back then we had the gold peg and small government- which is what libertarians want now. In con trast to that, from 1948 to 1960 was a period of high taxes, big government and lots of regulation, and that was also a period of great economic expansion. People back then started believing that economic crisis are a thing of the past. I am not saying that high taxes and big government are the answer. I am saying that economic are not necessarily the fault of government.
0 Votes
+ -
Message has been deleted.
cstrathmore Updated - 10th Jun
  • Flagged
U.S. regulators are eyeing mobile advertising again - but this time its Apple, not Google, thats on the governments radar over a change in terms of app ipad bag blog sutudeg education news and development. k l
@hamobu First, considering the grammar and spelling errors in your one sentence post, you are not in a position to be criticising other people's intelligence. Second, please direct your ill-informed ad hominem attacks at the thousands of research physicists, geneticists, bioengineers, security researchers, and architects (fields where OSX predominates) who use Apple products every day. I am sure they would be interested to know that they are stupid.
pembe maske energy balance oyna oyunu moliva orjin krem tutune son nanomatik complex 41
And as a long time Apple user, I'll pit my neuroscience degree against anything you have to throw at it.
  • Flagged
This is how Apple has always operated, they have always had full control over their ecosystem. No one cared much when they were a 'dying' company but now that they are success suddenly its an issue. Please...this was done IBM, Microsoft, Apple now and soon Google too will get its due. For some reason the tech world hates success no matter who it is. Its very strange.
Back when the iPad launched the iWorks suite was one of the few Office application choices available. Developers saw the value in the iPads large display and iOS platform and we now have several applications for working with Office documents. While there are many viewers, including one built into iOS, I searched for the top apps that let you create and edit documents and found the 6 discussed in detail in this article. A couple are clearly outmatched and should not even be considered for the serious user, but I figured I would buy them, test them, and let you know about them so you can make your own informed purchase ipad bag blog of best sutudeg community the modern education news and country and decision.
@hamobu-22333136139518773481685514128812 and I can feel liberated from the M$ tyrany.
The government should demand OSS for the people
@hamobu-22333136139518773481685514128812

Did yu use Linux in that solution?
If not, there is no OSS there.
@hamobu-22333136139518773481685514128812 That is really a big question. Google's servers are the heart of Google's business. And it has long been a FEATURE, a FEATURE, not a LOOPHOLE, that one could privately modify the GPL code they use to run their business. Of course web applications are obviously SaaS. But where does one draw the line between those applications and the servers that host them? For example, take an insurance company running open source on their back end servers. At some point they decide to put a customer facing front end on those servers so that customers can access their accounts over the Net. Does that suddenly make that whole kaboodle Saas? If so, I am not sure I am comfortable with AGPL. In fact, I am not sure I am comfortable with this concept anyway since it undercuts one of the few provisions that make GPL software highly attractive to businesses that are not engaged in reselling the software itself. It really compromises the spirit of the GPL in some ways.
@NonZealot

Actually, they need to be split up into 20 different companies but one thing at a time.

Don't they have to be ruled a monopoly first, which they are not?
@dave95. Don't they have to be ruled a monopoly first, which they are not?
0 Votes
+ -
Message has been deleted.
osoz Updated - 10th Jun
  • Flagged
0 Votes
+ -
Message has been deleted.
RahinBen Updated - 10th Jun
  • Flagged
@dave95. Don't they have to be ruled a monopoly first, which they are not? orjin krem tutune son nanomatik
@dave95. U.S. regulators are eyeing mobile advertising again - but this time its Apple, not Google, thats on the governments radar over a change in terms of app development. pembe maske energy balance oyna oyunu moliva orjin krem tutune son nanomatik
0 Votes
+ -
@NonZealot *YAWN* Yet another "I hate Apple" post... and it looks like you have gained a follower... so now there's NZ and "mini-NZ" aka hamobu...
@athynz

Or that he was any where to be found when the first one really happened? Sheesh.
0 Votes
+ -
analysis
banned from zdnet Updated - 11th Jun 2010
for an excellent analysis on the topic have a look here:
http://davidbarnard.com/post/684540619/anti-competitive-and-potentially-creepy
highly recommended.

you would expect that kind of post from paid bloggers here at zdnet. but than, no, it is zdnet we are talking about, only fud and drivel.
@NonZealot Cause they know it can become a wasted effort. That's why most will eventually migrate over to Android, like we have and yeah, never regretted it.

Now many Developers will see that staying in Apples ecosystem is bad business.

True Google can pull the rug under you, like they have with Waze, but then you just refocuse your efforts and come up with something like Layar virtual reality, Google wont let your efforts go to waste.

Apple does, so does who develop for Apple with their hands tied, no rightly so that they can be left out in the cold if Apple wishes to do so. That's monopoly tactics at its worst and Apple sooner than later will get hit with a larger fine than Microsoft ever has. Remember Europe doesn't like this behavior, nor do other countries. The US may tolerate it, but its WRONG.
@NonZealot

Apple recognizes this and has decided to kill HTC in the courts before they become too big a threat in the market.
@NonZealot

By the way, Google hasn't said anything about ChromeOS (you know the one that was ready to take the tablet world by storm)?

So the way you have to "talk down" WM6 tells me that once again, the MS replacement scares the pants off of you.
@NonZealot

and I can feel liberated from the M$ tyrany.
The government should demand OSS for the people
@NonZealot Microsoft is going to roll out the final version of at least some of its Windows Live Wave 4 services (though not its Essentials suite), based on what Microsoft officials said ipad bag blog of best sutudeg community the modern education news and yesterday.
They can "look at" whatever, but they do nothing more than waste taxpayers money.
0 Votes
+ -
Even if Apple does monopolize ...
LBiege 10th Jun 2010
it's no government's business to go in there picking winners and losers.
0 Votes
+ -
It's not about picking winners and loosers but about protecting consumers
hamobu-22333136139518773481685514128812 10th Jun 2010
Business conspiring against consumers is nothing new. Things like predatory pricing, bait-and-switch, market manipulation have been arround since late 19th century and days of standard oil. Corporate incentive to make money does not always align with consumer incentives and public good. Further more, technology is so complicated that without oversight, consumers would be easy pickings by corporations. Corporations controll everything you see, do, use, and consume. Unless you move to Montana and live unibomber style, you are at mercy of large companies. There should be some check over corporate power over you.
0 Votes
+ -
@hamobu

After government caused this housing bubble and locked so many consumers onto their under-water mortgage, someone is still calling for more government protection? That's sending one's daughter to a butcher.

Check the video below to see how well government protect you:
Barney Frank: "I'll push for more home ownership (despite warning of a bubble)."
http://www.youtube.com/v/iW5qKYfqALE

The same guy 3 years later: "The other party pushed home ownership and caused the crisis."
http://www.youtube.com/v/jFVd6CKcipI
0 Votes
+ -
More to it than just housing bubble
hamobu-22333136139518773481685514128812 10th Jun 2010
@LBiege

Market failed in many significant ways outside of government. If anything, it's deregulation and the idea that market can police itself that led to this. If parts of Glass-Steagel act - for example - were not repealed by Grahm-Leach-Bliley act, this crisis would have been much less severe. The market failed to vet loan applicants, price and rate mortgage backed securities, and it failed to insure these securities against default with the credit default swap. In fact the reason why Credit default swap is called a swap and not insurance is that if you call it insurance than you would need to follow insurance rules which would require having a reserve for liability.
0 Votes
+ -
Market crashed b/c of crazy government regulation
LBiege Updated - 10th Jun 2010
@hamobu

W/ all due respect, I think you're a little too gullible believing in every sorrow government excuse to figure out the culprit of the crisis was none other but government.

#1 Banks used to run sound business, check the credit of borrowers and give loans to low-risk customers only until government stepped in with a nutty, corrupted community reinvestment act forcing them to loan out to unworthy borrowers who would then vote for the politicans in exchange.

#2 To make matter worse government run enterprises like Fannie and Freddie took on the crazy loans from the banks with even less prudence that eventually turning into trillion-dollar blackholes that have to be cleaned up with tax payers' money.

#3 Quasi-government-agency Federal Reserve yielded to the political pressure and then artificially lowered the interest rate to keep the bubble growing. When it busted, Fed stepped in with tax payers money to save the irresponsible while screwing the prudent.

#4 Activities like CDS existed long before Glass-Steagle went away. The top reason it went rampant was b/c government fostered it with Federal Reserve constant bailout and FDIC insurance program. Market handled stuff like CDS by letting the losers fail to deter others from trying the same. Had there been no bailout, the first major CDS debacle (LTCM crash) would have washed most CDS players out of market.

Government regulation has failure written all over it. Time to put down the koolaid and see the truth.
0 Votes
+ -
There is a bit more to my position than just some government excuses
hamobu-22333136139518773481685514128812 10th Jun 2010
@LBiege

I am actually studying finance as a part of my job.My studying is not going well (in part because I am wasting a lot of time on zdnet) but I do pick up few things.

There were CDS before Glass-Steagall went away, but Banks were separate from Investment brokerages, and from insurance companies. Once Glass-Steagall was repealed in part by Grahm-Leach-Bliley (GLB), these companies started merging and this lead to situation where a fall in one segment can drag down others leading into total collapse. When housing prices fell, these investment companies found the value of their assets gone, and therefore banks associated with them could not make loans which meant that business could not take loans and pay workers, etc. This is the credit crunch where entire economy grinds to a halt because no money is flowing.

Similar thing happened in the great depression in 1930's only with stock market rather than mortgage market. Libertarians like to blame that one on federal reserve and government, but truth is that back then we had the gold peg and small government- which is what libertarians want now. In contrast to that, from 1948 to 1960 was a period of high taxes, big government and lots of regulation, and that was also a period of great economic expansion. People back then started believing that economic crisis are a thing of the past. I am not saying that high taxes and big government are the answer. I am saying that economic are not necessarily the fault of government.

I am not sure what you mean by FDIC bails out bad loans. FDIC is there to ensure deposits, but bank takes a hit on loan defaults, and person who defaults goes into foreclosure.

Fannie and Freddie (Which were supposedly private companies) did take on a lot of bad loans, but so did all the private investment firms and private rating agencies failed to rate these securities. So clearly market failed.

Community reinvestment actg is 33 years old. Seems unlikely that this would be immediate cause of current crisis.

I am not the only one that thinks that the last crisis shows was the failure of market due to lack of regulation. This is kind of an accepted view right now.
@LBiege

So you're saying it okay for a shopping mall to close a shop just because they have a potential similar shop coming to the mall.

or lay off a worker because you just hired a new worker for the cheap.
@LBiege
Wow, you are so monumentally misinformed it is astounding.
0 Votes
+ -
All this stupid arguing over stupid phone ads
ubiquitous one Updated - 12th Jun 2010
iAds, AdMob they all stink. Watch your battery charge times increase 5 fold.

This is also designed to get you to use more bandwidth and pay for their sh!tty pop-up ads along the same lines as you paying for unsolicited, incoming text messages.

The advertisers rake in the big bucks while you get to pay their bills. It's a scam of the lowest common denominator and you dummies fell for it.
0 Votes
+ -
What they are looking at is if Apple is changing the rules mid game to favor themselves over other developers.

Is it really any different then MS keeping all the best API secret, so they only ones able to develope the top notch programs for Windows is MS?

And before you go any farther, who has the largest online music store in the country? Who has the largest saturation of smart phones / MP3 players in the country?

this should be super easy to answer, you brag about it all the time...
@John Zern

Blackberry outnumber iPhones in the Smartphone segment.

Apple isn't stopping AdMob from being used in the App store, they are stopping AdMob from collecting information about App store users.

So when is Google going to open up all their information collecting and advertising business to others.

I really hope this government attention backfires on Google with their EVIL, SLY, SECRET information gathering ways.
@hill60 The government can always change the target segment and call it the Touchscreen Smartphone with an app store.

Phones -> (landline,cell)
Cell Phones -> (regular, smart)
Smart Phones -> (regular, touch)

In the Touch smartphone, Apple does have a monopoly. Not that I care, just saying that if the government wants to go after someone, they can.
with your posts like one of your previous about Apple's fail during demo. Google had the same thing happen to them few weeks ago and also blamed Wi-Fi.
@denisrs

You would think that being tech companies, they would have the knowhow to set up a private wifi to run their demoes and not use the public wifi set up for the attendees.
0 Votes
+ -
I'm so happy about this too!!
JenniferWeb Updated - 10th Jun 2010
Google is getting a taste of its own medicine. Google has been banning certain advertisers for years. They raise their cost per click rates to unaffordable prices, cancel advertiser accounts, etc.... without explanation. Anybody who has experienced this as an advertiser knows just how cruel Google is when dealing with advertisers.
Way to go APPLE!!!! You get my vote
0 Votes
+ -
I would like to read more about this
hamobu-22333136139518773481685514128812 10th Jun 2010
Do you have any more info on Google dealing unfairly with advertisers?
0 Votes
+ -
Author is mixing Apple's purposefull restrictions with their incompetence
hamobu-22333136139518773481685514128812 10th Jun 2010
Apple restricting developers to make more money is different (and more serious issue) than Apple taking too long to approve an app because they are understaffed.
0 Votes
+ -
RE: Mobile ad wars: U.S. regulators looking into Apple's new terms
tomlin21-24319035676893835085146735905770 11th Oct
I used to be amazingly delighted to look out this blog page.I sought after to many thanks for this fantastic scan!! I positively enduring almost each and every modest little bit of it and I've you nfljerseys bookmarked to appearance at out new things you publish.

Join the conversation!

Formatting +
BB Codes - Note: HTML is not supported in forums
  • [b] Bold [/b]
  • [i] Italic [/i]
  • [u] Underline [/u]
  • [s] Strikethrough [/s]
  • [q] "Quote" [/q]
  • [ol][*] 1. Ordered List [/ol]
  • [ul][*] · Unordered List [/ul]
  • [pre] Preformat [/pre]
  • [quote] "Blockquote" [/quote]
ie8 fix

The best of ZDNet, delivered

ZDNet Newsletters

Get the best of ZDNet delivered straight to your inbox

Facebook Activity

White Papers, Webcasts, & Resources
ie8 fix