Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest mobile OS news, mobile applications, and the overall app economy.
The app industry continues to grow, with a record 218 billion downloads and $143 billion in global consumer spending in 2020. Consumers last year also spent 3.5 trillion minutes using apps on Android devices alone. And in the U.S., app usage surged ahead of the time spent watching live TV. Currently, the average American watches 3.7 hours of live TV per day but now spends four hours per day on their mobile devices.
Apps aren’t just a way to pass idle hours — they’re also a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus. In 2020, investors poured $73 billion in capital into mobile companies — a figure that’s up 27% year-over-year.
This Week in Apps offers a way to keep up with this fast-moving industry in one place with the latest from the world of apps, including news, updates, startup fundings, mergers and acquisitions, and suggestions about new apps and games to try, too.
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Changes to the App Store ecosystem dominated the headlines this week. In South Korea, legislators are set to vote on a landmark bill that could end Apple and Google’s payment exclusivity on their app stores. Meanwhile, Apple dropped commissions to 15% for news publishers’ apps if they agreed to participate in the Apple News ecosystem. Apple also agreed to settle a class-action lawsuit from U.S. app developers that, pending court approval, will introduce a few changes to App Store rules — the most notable being that it allows developers to communicate with their users outside of their iOS apps to tell them about other purchase options.
As it turns out, this App Store settlement agreement isn’t really as earth-shattering as some headlines may have made it seem. For starters, Apple had already slightly adjusted its App Store policies in June when it clarified that developers could communicate through email and text with their customers about other purchasing methods besides Apple’s own in-app purchases. But this was only permitted if developers weren’t using contact information obtained from within the app. With the new settlement, that changes a bit.
Developers can now take the smallest of steps forward as they can inform users — well, users who have consented to receive offers via email or other communications — about alternative payment methods besides in-app purchases. That means developers will also have to collect users’ contact information from their app. Users may already be logging in using third-party credentials like Facebook’s, Google’s, or even Apple’s own sign-on systems. (Apple’s system, of course, has an option to hide your email address from developers. Wow, someone was thinking ahead there!)