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Microsoft Takes a Shot at Apple, Says App Stores Should Be More Competitive

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  • Microsoft released a set of 10 app store principles designed to ensure fairness and healthy competition in Windows 10 and the Microsoft Store.
  • While these principles won’t require much change for the company, they are significant because they are aimed at sending a message to Apple, which has been repeatedly criticized for anti-competitive and unfair practices in its app store.
  • This makes Microsoft the largest company to go after the Apple app store, as it joins the likes of Spotify and Epic Games, which are already members of the Coalition For App Fairness. Microsoft’s 10 principles are very similar to principles that the coalition has laid out. 
  • Apple has defended itself, claiming that its app store is fair and competitive, and adding that it created an open marketplace for app developers. 

Microsoft’s New Principles

In an apparent shot at Apple, Microsoft released a set of principles for its app store on Thursday, calling for app stores everywhere to be more competitive and fair. 

“For software developers, app stores have become a critical gateway to some of the world’s most popular digital platforms,” Rima Alaily, Microsoft’s Vice President and Deputy General Counsel wrote in a blog post. “We and others have raised questions and, at times, expressed concerns about app stores on other digital platforms. However, we recognize that we should practice what we preach.”

The post went on to list 10 principles aimed to promote choice, fairness, and innovation on Windows 10 and in the Microsoft store. Those principles include Microsoft not blocking competing app stores on Windows, not blocking an app based on a developer’s business model or how it delivers content, not blocking apps based on the payment system a developer uses for in-app purchases, and giving developers access to information about the interoperability interfaces used on Windows.

These first four principles are designed to preserve freedom of choice and keep competition alive on Windows 10 in third party app stores. Alaily wrote that this offers different pricing options and distribution choices to developers as they distribute their apps across the internet. 

The remaining principles are meant to ensure that developers are all subject to the same standards and prevent Microsoft from favoring itself.  This includes holding developers equally accountable for safety and privacy, not forcing developers to sell anything on their app they do not want to, allowing developers to communicate with their users on business terms, and making sure Microsoft does not use private data to compete with developers. 

These rules will not apply to the Xbox Store. According to Alaily, game consoles are specialised and run on a different ecosystem and business model than PCs or phones. Therefore, these principles would not be practical for Xbox. 

Apple’s Anti-competitive Behavior

These principles will not require massive changes at Microsoft because Windows 10 is already an open platform, but constant references in the blog post to “other app stores” show that these rules are a clear nudge to Apple, which has been repeatedly criticized for anti-competitive behavior on its app store. 

Earlier this week, a House subcommittee released a report accusing Apple and other major tech companies, notably not Microsoft, of abusing monopoly powers and engaging in anti-competitive tactics. When it came to Apple, the report’s findings largely had to do with its app store. The report said that while Apple’s ecosystem has significant benefits for both app developers and customers, the company still functions on an extreme and controlling bias. 

The subcommittee wrote that this control over the app store creates barriers for competition and allows Apple to discriminate against rivals so they can instead promote their own apps.

“Apple also uses its power to exploit app developers through misappropriation of competitively sensitive information and to charge app developers supra-competitive prices within the App Store,” the report said. “Apple has maintained its dominance due to the presence of network effects, high barriers to entry, and high switching costs in the mobile operating system market.”

The report also noted that Apple, along with Google, charges developers a 30% commission on paid apps. While Apple claims this is an industry-standard, according to the report, this standard was actually established by Apple back in 2009.

Coalition For App Fairness

Microsoft is far from the first tech company to go after Apple’s app store practices, but it is the largest. The principles the company laid out borrow from policies laid out by The Coalition for App Fairness, whose members include Spotify, Epic Games, and Match Group. On its website, the coalition says that the tech giant is ruled by anti-competitive practices. 

“Apple uses its control of the iOS operating system to favor itself by controlling the products and features that are available to consumers,” the group says. “Apple requires equipment manufacturers to limit options, forces developers to sell through its App Store, and even steals ideas from competitors.”

The coalition also says that the 30% app tax forces developers to drive up their prices, making it impossible to compete with similar apps made by Apple that can get away with charging much less. Because of this, the group believes Apple is cutting into consumer purchasing power and freedom.

Tensions between tech groups in this coalition and Apple are nothing new. Over the summer, Epic Games slapped Apple with a lawsuit over its app store policies. Epic Games CEO thanked Microsoft for joining efforts to limit their powers. 

“It’s wonderful to see Microsoft formally codify its long-held principles in Windows as an open platform and a fair market for all developers and consumers,” he wrote.

He was not the only one to praise Microsoft. Spotify spokesman Adam Grossberg released a statement in support of the company’s move. 

“By embracing these principles, Microsoft will help create a level playing field for developers both large and small, provide consumers with greater choice, and hopefully encourage other platforms to do the same,” he said.

For its part, Apple has defended its practices within the app store. After the House released their report, the company put out a statement condemning its findings. 

“We have always said that scrutiny is reasonable and appropriate but we vehemently disagree with the conclusions reached in this staff report with respect to Apple,” the statement said. “Our company does not have a dominant market share in any category where we do business.”

“We’ve built the App Store to be a safe and trusted place for users to discover and download apps and a supportive way for developers to create and sell apps globally.”

See what others are saying: (Axios) (The Verge) (The New York Times)

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Mental Health Startup Cerebral May Have Harmed Hundreds of Patients, Leaked Documents Reveal

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The company is being investigated by multiple federal agencies for its questionable practices, which have come under increasing scrutiny in recent weeks.


Over 2,000 Incident Reports Shed Light on Recklessness

A Silicon Valley mental health startup called Cerebral may have harmed hundreds of patients by flagrantly disregarding medical standards, according to a cache of documents reviewed by Insider, as well as over 30 interviews with current or former employees by the outlet.

Founded in 2020, Cerebral provides mental health treatment to customers through talk therapy and medication for conditions such as depression, anxiety, insomnia, and ADHD.

With people quarantined during the pandemic, it became one of the largest virtual therapy firms in the United States, attracting some $462 million from investors.

Cerebral employees filed at least 2,060 incident reports during seven months in 2021, according to Insider. They show that the company enrolled patients with complex conditions like bipolar disorder, then assigned them to clinicians and other staff members with insufficient training, oversight, and support to treat such cases.

It also put dozens of patients on questionable treatment plans and misdiagnosed many others, the reports say, with company medical providers prescribing potentially lethal combinations of drugs or addictive drugs to patients with histories of addiction.

Additionally, many patients were left stranded without care for extended periods due to technology issues or the company’s failure to retain clinicians.

As a result, Cerebral shuffled patients from one provider to the next and even bungled their prescriptions, sometimes leading them to suffer drug withdrawal or take the wrong medication.

Patients Tell Their Stories

One patient reportedly spent two weeks waiting for a referral to a clinician, later saying she spent eight days in a psychiatric ward.

Another patient told CBS News she was prescribed a drug for her anxiety but afterward could not reach her prescriber for instructions on how to switch to the new medication safely.

“Any time I needed help, she was never available,” she said.

After she did not get a response for six days, she began taking the drug anyway, which caused her to break out in a rash.

“I messaged back,” she said, “letting them know it was spreading and getting worse, and they said that they were still trying to get a hold of that prescriber… They make it seem like they want to help, and then they get you, and then they’re gone.”

A Cerebral spokesperson told Insider that the reports did not highlight enough patients to accurately reflect the company.

“Any incident reports you obtained show Cerebral’s dedication to quality,” the spokesperson said. “You can’t take a relatively small group of incident reports and draw conclusions about our care.”

Two former senior employees told the outlet those reports were monitored by just a couple of people who had other responsibilities at the company, adding that leadership frequently pushed off solving the systemic issues flagged.

Cerebral’s practices are currently being investigated by the Drug Enforcement Administration, the Department of Justice and the Federal Trade Commission.

See what others are saying: (Business Insider) (CBS News) (Fierce Healthcare)

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Instagram Testing New Tools To Verify Users Are Over 18

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The new tools include AI software that analyzes video footage of a person’s face to verify their age.


Instagram Cracks Down on Underage Users

Instagram is testing new features in the United States to verify the age of users who claim to be over 18 years old. 

According to a statement from Instagram’s parent company, Meta, the tools will only apply to users who seek to change their age from under 18 to over 18. The platform previously asked for users to upload their ID for verification in this process, but on Thursday, it announced there will be two new methods for confirming age. 

One of the strategies was referred to as “social vouching.” Using this option, people can request that three mutual Instagram followers over the age of 18 confirm their age on the platform.

The other method allows users to upload a video selfie of themselves to be analyzed by Yoti, third-party age verification software. Yoti then estimates a person’s age based on their facial features, sends that estimate to Meta, and both companies delete the recording. 

According to Meta, Yoti cannot recognize or identify a face based on the recording and only looks at the pixels to determine an age. Meta said that Yoti “is the leading age verification provider for several industries around the world,” as it has been used and promoted by social media companies and governmental organizations. 

Still, some question how effective it will be for this specific use. According to The Verge, while the software does have a high accuracy rate among certain age groups and demographics, data also shows it is less precise for female faces and faces with darker skin tones. 

Issues With Kids on Instagram

Meta argues that it is important for Instagram to be able to discern who is and is not 18, as it impacts what version of the app users have access to.

“We’re testing this so we can make sure teens and adults are in the right experience for their age group,” the company’s statement said. 

“When we know if someone is a teen (13-17), we provide them with age-appropriate experiences like defaulting them into private accounts, preventing unwanted contact from adults they don’t know and limiting the options advertisers have to reach them with ads,” it continued. 

These changes come as Instagram has been facing increased pressure to address the way its app impacts younger users. 

Only children 13 and older are allowed to have Instagram accounts, but the service has faced criticism for not doing enough to enforce this. A 2021 survey of high school students found that nearly half of the respondents had created a social media account of some kind before they were 13.

The company also recently came under fire after The Wall Street Journal published internal Meta documents revealing that the company knew that it harmed teens, including by worsening body image issues for young girls and women.

See what others are saying: (The Verge) (The Wall Street Journal) (Axios)

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Elon Musk Threatens to Fire Employees Unless They Work in Person Full-Time

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The world’s richest man in the world previously suggested that the popularity of remote work has “tricked people into thinking that you don’t actually need to work hard.”


“If You Don’t Show up, We Will Assume You Have Resigned”

On Wednesday, Electrek published two leaked emails apparently sent from Elon Musk to Tesla’s executive staff threatening to fire them if they don’t return to work in person.

“Anyone who wishes to do remote work must be in the office for a minimum (and I mean *minimum*) of 40 hours per week or depart Tesla,” he wrote. “This is less than we ask of factory workers.”

“If there are particularly exceptional contributors for whom this is impossible, I will review and approve those exceptions directly,” he continued.

Musk then clarified that the “office” must be a main office, not a “remote branch office unrelated to the job duties.”

“There are of course companies that don’t require this, but when was the last time they shipped a great new product? It’s been a while,” he wrote in the second email.

Later on Wednesday, a Twitter user asked Musk to comment on the idea that coming into work is an antiquated concept.

He replied, “They should pretend to work somewhere else.”

The Billionaire Pushes People to Work Harder

Musk has a history of pressuring his employees and criticizing them for not working hard enough.

“All the Covid stay-at-home stuff has tricked people into thinking that you don’t actually need to work hard. Rude awakening inbound,” he tweeted last month.

Three economists told Insider that remote work during the pandemic did not damage productivity.

“Most of the evidence shows that productivity has increased while people stayed at home,” Natacha Postel-Vinay, an economic and financial historian at the London School of Economics, told the outlet.

Musk is notorious for criticizing lockdown mandates and went so far as to call them “fascist” during a Tesla earnings call in April 2020.

Not long before that, Tesla announced that it would keep its Fremont, California plant open in defiance of shelter-in-place orders across the state.

In an interview with The Financial Times last month, Musk blasted American workers for trying to stay home, comparing them to their Chinese counterparts whom he said work harder.

“They won’t just be burning the midnight oil. They will be burning the 3 a.m. oil,” he said. “They won’t even leave the factory type of thing, whereas in America people are trying to avoid going to work at all.”

That same day, Fortune published an article detailing how Tesla workers in Shanghai work 12-hour shifts, six days out of the week, sometimes sleeping on the factory floor.

See what others are saying: (CNBC) (Electrek) (Business Insider)

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