AXEL.org

apple

Convenient or Monopolistic? Epic’s Challenge to Apple’s “Walled Garden”

On August 13, 2020, Epic Games, the developer and publisher of the massively popular online game Fortnite, tried something that most companies would be too scared to do. They picked a fight with Apple. On that day, Epic announced a 20% discount on “V-Bucks,” Fortnite’s in-game currency, but only if they purchase it directly from Epic, rather than through Apple’s App Store.

This was an intentional violation of Apple’s terms of service, as Apple takes a 30% commission of all in-app purchases, and Epic wanted that extra money for itself. Within hours, Apple took Fortnite off the App Store for violating its terms of service, with a lawsuit by Epic quickly following [1].

On September 10, 2021, that lawsuit received a ruling. The judge sided with Apple on nine of ten counts, but ordered Apple to loosen restrictions on alternative payment options [2]. However, Apple CEO Tim Cook still stated that, even if an app uses a non-Apple payment option, Apple would still invoice the 30% commission [3]. So, what’s next? Epic appealed the ruling, but for now, Apple still maintains tight control over the apps on its App Store. Ultimately, this case highlights the uniqueness of Apple’s software philosophy, and how its relationships with third-party developers frequently draw ire.

A Walled Garden

For years, Apple’s software philosophy has been described as a “walled garden.” This means that Apple’s software is simple, secure, and easy to use for the consumer. However, Apple also strongly dissuades or even forbids users and developers from leaving their walled garden. Apple states that this approach is necessary to protect its users, and also to differentiate itself from Android, a competitor with a more open ecosystem [4]. Ultimately, this leads to increased simplicity for the user, along with increased dependence on Apple software. So while this approach does protect users from dubious third parties, it also entraps users into Apple’s ecosystem as well.

While Apple claims that its walled garden approach is to offer increased security and simplicity for its users, there are other reasons why Apple uses this philosophy. Because Apple has full control of its ecosystem, it can enforce practically any rule it wants. This includes a 30% commission on in-app purchases. Unfortunately, for third-party developers, this means putting up with Apple’s demands or risk getting kicked out of the garden. And that’s exactly what happened with Epic Games.

The Legal Argument

The main conflict of Epic Games vs. Apple focused on whether Apple’s walled garden approach violates antitrust law. Specifically, Apple’s requirement to force users to only purchase in-game items through the App Store, rather than through another party, was used as evidence of monopolistic behavior [2]. On the other hand, Apple argued that they are free to do business (or not do business) with any other company, and that their restriction of third-party payment services was within their rights as a business. Simply put, this case pitted first-party hardware and third-party software developers against one another.

Ultimately, the court ruled with Apple on nine of ten counts, with Epic stating their intention to appeal their decision [2]. In the one ruling against Apple, Judge Yvonne Gonzalez Rogers stated that “Apple created a new and innovative platform which was also a black box. It enforced silence to control information and actively impede users from obtaining the knowledge to obtain digital goods on other platforms. Apple has used this lack of knowledge to exploit its position [2].” However, because the judge ruled in favor of Apple in the other nine counts, few changes are likely to occur.

While there was potential for a landmark ruling that would shake Apple to its core, the actual ruling that was handed down will likely not have a massive effect on either company. The only change Apple must make is to allow developers to use third-party payment services. However, nothing is stopping Apple from collecting the 30% commission from those third-party developers. Ultimately, while this court ruling had the potential for massive change, the judge’s ruling ensured that Apple’s walled garden philosophy will continue.

Security and Your Rights

While Apple argued that its App Store policies were there to protect users, we know that isn’t the main reason for those restrictive rules. Simply put, the purpose of Apple’s walled garden approach is to keep users locked into the Apple ecosystem. While some users do prefer this method, and it can protect users from unsavory third-party developers, it still infringes upon the rights of consumers.

Unfortunately, this philosophy is all too common with Big Tech companies. Sacrificing privacy is a big win for Big Tech, but a huge loss for privacy rights. Corporations continue to collect hoards of personal data to sell to advertisers, while your privacy is violated. With Amazon, Google, and others offering endless new ways to collect your data, it’s fair to ask: Are you the customer, or the product?  

Thankfully, there are businesses that prioritize security and personal rights. That’s where AXEL comes in. AXEL believes that privacy is a human right. With this in mind, we created AXEL Go, a secure file-sharing and storage software. Offering industry-leading encryption and decentralized blockchain technology, AXEL Go is the best way to protect yourself or your business from unauthorized cybercriminals. With AXEL Go, there’s no compromise between security and privacy rights. After all, our business is protecting your data, not collecting it. If you’re ready to try the most secure file-sharing and storage software, get two free weeks of AXEL Go here. 

[1] Statt, Nick. “Apple Just Kicked Fortnite off the App Store.” The Verge. August 13, 2020. https://www.theverge.com/2020/8/13/21366438/apple-fortnite-ios-app-store-violations-epic-payments.

[2] Newman, Daniel. “Does The Epic Ruling Open The Door For Apple’s Competition?” Forbes. September 16, 2021. https://www.forbes.com/sites/danielnewman/2021/09/16/does-the-epic-ruling-open-the-door-for-apples-competition/.

[3] Adorno, José. “Apple Can Still Charge Its App Store 30% Fee Even after Epic Ruling, Analysts Say.” 9to5Mac. September 14, 2021. https://9to5mac.com/2021/09/14/apple-can-still-charge-its-app-store-30-fee-even-after-epic-ruling-analysts-say/.


[4] Beres, Damon. “All the New Ways Apple Is Trying to Take Over Your Life.” Slate Magazine. June 08, 2021. https://slate.com/technology/2021/06/apple-wwdc-ios15-new-features-walled-garden.html.

Big Tech’s Big Secret: Why Google and Apple Want Your Data

Two of the biggest tech companies in Silicon Valley have long been rivals. Whether it be iPhone vs. Android or Chrome vs. Safari, Apple and Google have never been on the friendliest of terms. Except for one, massive partnership. This year, Google is expected to pay Apple USD $15 billion to have Google be the default search engine on Safari [1]. At first, this deal seems like a head-scratcher. After all, why would Google pay its biggest rival billions when most already prefer Google as their search engine of choice? Put simply, Google outbids others to ensure other corporations (namely, Microsoft) can’t have their search engines become the default.

In addition to the two companies’ rivalry, there is another reason why Apple and Google’s lucrative partnership is so puzzling. Specifically, the two corporations’ stance on data privacy. In recent years, Apple has highlighted its privacy features extensively, with entire marketing campaigns dedicated to showcasing Apple’s (seemingly) hard-line stance on user privacy. On the other hand, Google’s revenue depends on advertising, and thus, user data. Over 80% of Google’s revenue comes from targeted advertising [2]. Overall, Apple and Google’s partnership shows how Big Tech companies that claim to prioritize your privacy may sacrifice that right for a big payday.

Apple’s Stance on Privacy

Just a few months ago, Apple launched a marketing campaign with the tagline “Privacy. That’s iPhone [3].” Clearly, Apple knows that privacy is something that the public wants, particularly in today’s Digital Age. In fact, Apple even states that “Privacy is a fundamental human right” on its website. On Apple’s site that details its privacy features, the company touts that Maps “doesn’t associate your data with your Apple ID” and that “your Apple ID isn’t connected to Siri.” Finally, Apple states that Safari “helps stop advertisers that follow you from site to site [4].” Clearly, Apple wants its users to believe their data is protected with them. Put simply, Apple wants to market itself as the Big Tech company that actually cares about your privacy. But is that the case?

Well, not really. While Apple is certainly better with privacy than most other Silicon Valley giants, that’s not a particularly high bar to clear. Apple still collects data in aggregate and keeps your exact maps locations for 24 hours [5]. While Apple may say that the benefits of this data collection vastly outweigh the harms, they’re still collecting the data. But worst of all, Apple still allows apps that don’t care about privacy at all. All of Apple’s privacy features are only on its own software. If you use more popular apps, such as Google Maps, Gmail, Facebook, YouTube, and others, you’re not protecting your data, even if you’re using the apps on an iPhone.

So while Apple talks a big game, and has certainly made positive steps toward a more private future, it’s still misleading to say Apple truly cares about your privacy. By still allowing data-hungry apps on its App Store, your data is still exposed on Apple’s hardware. Of course, Apple is a business, and simply not allowing these popular apps would be a massive change. However, the implication that all of your data is protected on Apple devices is simply misleading.

Google and User Privacy

While Apple has taken some steps to protect user data, Google’s entire business model depends upon the collection and sale of data. Google collects, among other things, website histories, Gmail data (including email drafts), and specific location data, even when the Google Maps app isn’t open [6]. Google then takes that personal data and sells it, allowing companies to target their ads to specific audiences. With this hyper-specific information, Google can line its pockets with revenue, while your data is exposed to advertisers.

In fact, Google’s entire business model is the sale of user data. That’s why nearly all of Google’s products are completely free. From Google Maps to YouTube, Gmail to Drive, Google offers all of these services for free. And many have wondered how Google can offer such complicated software for no cost. The answer? Google’s software isn’t their main product. You are their main product.

For Big Tech, It’s All About Ads

Unfortunately, Google is just one of many corporations whose main product isn’t software or programs. It’s you and your data. Similar to Google, Facebook makes the vast majority of its revenue through ads. Facebook learns as much as possible about you, then uses that data to deluge your timeline with hyper-specific ads [7]. Additionally, the goal of Amazon’s expansion into smart speakers and grocery stores isn’t just to offer a wider suite of products. It’s about gathering even more information about its customers and sharing that with advertisers [8]. 

While Facebook and Amazon both carefully state that they don’t “sell” your data to third parties, they do “share” your data with third parties. In practice, this still means advertisers can pay for access to your data. And, unfortunately, that is how most Big Tech companies operate. While these mega-corporations may offer a variety of free software and products to customers, those aren’t their main business. If they aren’t selling products or services, they’re selling you.

AXEL is Different

At AXEL, we also believe that privacy is a human right. Unlike other companies though, we don’t hide behind our slogans. AXEL takes steps to ensure your data is protected from cybercriminals and advertisers alike. From military-grade encryption to blockchain technology, AXEL offers the most stringent security for your most important data.

Additionally, with AXEL, you’re not the product. That’s why we never sell your data to any third party. We don’t offer any “too good to be true” deals while selling your data on the side. AXEL Go is a secure file-sharing and storage software that puts you in control of your data. If you’re ready to take back control of your data, try two weeks of AXEL Go for free here. After the free trial, AXEL Go is just $9.99 per month. After all, our business model is offering the best, most secure file-sharing service to all; not offering your private data to the highest bidder.

[1] Ion, Florence. “Google Continues to Pay Apple Billions to Keep You From Using… Bing?” Gizmodo. August 26, 2021. https://gizmodo.com/google-will-continue-to-pay-apple-billions-to-keep-you-1847564608.

[2] Graham, Megan, and Jennifer Elias. “How Google’s $150 Billion Advertising Business Works.” CNBC. May 21, 2021. https://www.cnbc.com/2021/05/18/how-does-google-make-money-advertising-business-breakdown-.html.

[3] Apple. YouTube. May 20, 2021.

https://www.youtube.com/watch?v=8w4qPUSG17Y.

[4] “Privacy.” Apple. 

https://www.apple.com/privacy/.

[5] “Apple Delivers a New Redesigned Maps for All Users in the United States.” Apple Newsroom. August 06, 2021. https://www.apple.com/newsroom/2020/01/apple-delivers-a-new-redesigned-maps-for-all-users-in-the-united-states/.

[6] Haselton, Todd. “How to Find out What Google Knows about You and Limit the Data It Collects.” CNBC. December 06, 2017. https://www.cnbc.com/2017/11/20/what-does-google-know-about-me.html.

[7] Gilbert, Ben. “How Facebook Makes Money from Your Data, in Mark Zuckerberg’s Words.” Business Insider. April 11, 2018. https://www.businessinsider.com/how-facebook-makes-money-according-to-mark-zuckerberg-2018-4.
[8] M, Laura. “Does Amazon Sell Your Personal Information?” DeleteMe. August 21, 2020. https://joindeleteme.com/blog/does-amazon-sell-your-personal-information/.

Apple and Facebook Fight Over Privacy

Apple and Facebook are currently ranked 1 and 6 respectively in the list of biggest companies by market cap[1]. These tech behemoths wield immense influence in both the business and social spheres. They also have different, seemingly opposing views on the nature of privacy in today’s society. These disparate philosophies have increased tensions between the two tech giants, and recently it’s escalated. We’ll break down the history and the sources of the standoff.

A brief history

Things weren’t always so frosty between the organizations. In fact, according to a 2012 biography, Apple CEO Steve Jobs admired Facebook CEO, Mark Zuckerberg[2]. So much so, it was a driving force in the reluctance of Apple to start a competing social network. However, after the death of Jobs in 2011, things cooled off considerably when current CEO Tim Cook took over.

Perhaps sensing the way things were going in the industry, Cook came out in 2014 with an open letter that took indirect jabs at Facebook and Google[3]. In it, he claimed Apple was not in the business of creating detailed user profiles on individuals through the use of data mining. While he did not mention his competitors directly, it was obvious who he was denouncing.

That same year, Zuckerberg fired back in an interview with TIME Magazine[4], stating

“A frustration I have is that a lot of people increasingly seem to equate an advertising business model with somehow being out of alignment with you customers. I think it’s the most ridiculous concept. What, you think because you’re paying Apple that you’re somehow in alignment with them? If you were in alignment with them, then they’d make their products a lot cheaper!”

We’d recommend reading this article. Perhaps everyone was a bit naïve at the time, but re-reading it through the lens of 2021 with an understanding of the path Facebook took, the plan Zuckerberg outlined seems much more nefarious and a good example of real-life supervillainy. What could go wrong with the CEO of the world’s most invasive social platform wanting to bring internet connection to the entirety of the world?

We digress. Throughout the next seven years, the two CEOs traded barbs on issues such as the Cambridge Analytica scandal and Apple’s monopolistic control of its App Store. In the end, the arguments usually boiled down to Tim Cook accusing Facebook of invading users’ privacies and Zuckerberg saying Apple products cost too much or that the company is an unfair gatekeeper.

We tend to fall on Cook’s side of the argument. It’s true Apple products cost significantly more than competing hardware solutions. But, as we outlined in a previous blog about free software, trading privacy for free or cheap products has serious drawbacks. Now, back to the feud.  

Tensions boil over

Fast-forward to today. In late 2020, Apple started requiring software on the App Store to come with informative “privacy labels” that clearly state the data the app collects on its users. This was great news for AXEL, but not so much for Facebook. Facebook Messenger alone has a privacy label that reads more like a novel than a brief overview[5].

The labels, combined with the most recent update, have sent Facebook reeling for solutions. The latest update goes a step farther than labels and provides users with the oft-talked-about ‘Opt-In’ scenario regarding data collection[6]. ‘Opt-In’ is a concept that requires users to agree to corporate data collection formally. This is a major step forward in the fight for digital privacy rights. It’s much better than current United States privacy regulations in states such as California and Virginia. Those pieces of legislation mandate companies provide an ‘Opt-Out’ option. While better than nothing, the fact is that consumers are busy. They don’t have the knowledge or desire to scroll through layers of confusing websites to exercise their right to opt-out.

This makes Opt-In the preferred way to offer privacy. It makes privacy the default, which will vastly increase the number of people exiting the corporate surveillance scheme. Unsurprisingly, companies like Facebook are not happy about this! Personalized advertising is the company’s lifeblood, and without user data to gather and analyze, ad revenues will likely fall.

Facebook’s response

Facebook hasn’t taken these changes lying down. Their argument centers around the effects felt by small businesses due to Apple’s changes. Facebook frames its data collection around its usefulness to small businesses. Without the ability to target people most likely to buy, these companies will feel the brunt of the impact, causing many of them to close.

Facebook started a public relations blitz, using television commercials and full-page ads in popular newspapers[7] to drive home the point. It has received some mockery for this in the mainstream media. It certainly does appear to be a rather transparent way to further its own goals while seeming to have more profound principles.

Facebook also raised another issue, and though it didn’t receive as much attention from the media, it probably has more merit. They claim that Apple’s recent privacy push isn’t out of any benevolent intentions for consumers but rather greed. Apple receives anywhere from 15-30% of App Store sales, depending on the developers’ overall revenue. By giving consumers the choice to opt into data collection, they must know that most users will decline. This could cause a shift from free apps that generate revenue based on advertising to more paid apps. In turn, Apple receives more money from downloads since more of them are paid. If true, it’s a very sneaky way for the tech manufacturer to make more money while playing the good guy.

The reality is that both Facebook and Apple are profit-driven mega-corporations looking to protect their businesses. You can’t blame either of them for this feud, although it seems obvious that Apple comes out ahead from a public utility perspective. Whatever the root cause, any initiative to substantially increase digital privacy is a good thing in our book.

AXEL’s commitment

AXEL is dedicated to fighting for digital privacy rights for everyone. The concept of data custody and forging lasting trust between consumers and technology is embedded into our corporate philosophy. We develop our products and services to live up to these lofty ideals.

If you are looking for a privacy-focused cloud storage and file-sharing platform, try AXEL Go free for 14-days. During the trial period, you receive all Premium features, including removing file-size restrictions, Secure Fetch functionality, and storage encryption. AXEL never collects personal information to sell to third parties or mines your content for advertising. We’re an alternative tech company you can trust. Secure your files. Secure your digital future with AXEL.

[1] “Largest Companies by Market Cap”, CompaniesMarketCap.com, April 30, 2021, https://companiesmarketcap.com/

[2] Emil Protalinski, “Steve Jobs admired Zuckerberg too much to compete with him”, CNET.com, July 17, 2012, https://www.cnet.com/news/steve-jobs-admired-zuckerberg-too-much-to-compete-with-him/

[3] Steve Musil, “Tim Cook explains Apple’s privacy policies in open letter”, CNET.com, Sept. 17, 2014, https://www.cnet.com/news/tim-cook-explains-apples-privacy-policies-in-open-letter/

[4] Lev Grossman, “Inside Facebook’s Plan to Wire the World”, Time.com, Dec. 15, 2014, https://time.com/facebook-world-plan/

[5] Ben Lovejoy, “App privacy labels show stark contrasts among messaging apps”, 9to5mac.com, Jan. 4, 2021, https://9to5mac.com/2021/01/04/app-privacy-labels-messaging-apps/

[6] Ian Sherr, “Apple’s privacy battle with Facebook just became all-out war”, CNET.com, April 26, 2021, https://www.cnet.com/news/apples-privacy-battle-with-facebook-just-became-all-out-war/

[7] Megan Graham, “Facebook blasts Apple in new ads over iPhone privacy change”, CNBC, Dec. 16, 2020, https://www.cnbc.com/2020/12/16/facebook-blasts-apple-in-new-ads-over-iphone-privacy-change-.html