App Developers Form Advocacy Group

The Coalition for App Fairness

App companies have banded together to put pressure on Apple (AAPL) and other app marketplaces to make changes to their policies. The new group, called The Coalition for App Fairness, is a nonprofit registered in Washington, D.C. Its members include Epic Games (the maker of Fortnite), Match Group (MTCH) (which owns Tinder), Spotify (SPOT), and others.

App marketplaces have become one of the main ways consumers access entertainment, educational materials, business tools, and more. App stores account for billions of dollars worth of economic activity each year. The new coalition wants to make sure that app stores policies are fair to app developers and that companies like Apple and Google (GOOGL) don’t abuse their power.

A Quick Review

The conflict between app developers and app marketplaces has been simmering for some time. Earlier this summer, Epic Games found a way to allow consumers to make purchases within Fortnite without paying the 30% cut that Apple and Google usually take from in-app purchases. In response, Apple and Google removed Fortnite from their app stores. Epic Games then sued the companies, and the lawsuit is currently unfolding in a California federal court.

There have been other disputes between app developers and the platforms that distribute their apps in recent months. Apple in particular faced criticism from tech companies like Microsoft (MSFT) and Facebook (FB). Additionally, a coalition of media companies including the New York Times (NYT) and the Wall Street Journal recently sent a letter to Apple asking for better app store terms.

Looking Ahead

The coalition of app developers is focusing on three main areas that it hopes to change: It is criticizing app stores’ policies of taking a 30% cut of in-app purchases, it wants to stop platforms from engaging in what it sees as anticompetitive behavior, and it wants to make sure that these platforms, especially Apple, do not use their power to favor their own services on their app stores. App marketplaces have defended themselves, saying they encourage competition and that the fees they charge cover security and other services.

Investors have been carefully watching as both businesses and lawmakers scrutinize Apple and Google’s app store policies this summer. They will be eager to see what actions The Coalition for App Fairness will take, and how that will impact the companies’ policies.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT SoFi SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than one million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. For more information, visit Want an easy and convenient way to manage your financial life? Get the SoFi app. For iOS and Android.

TLS 1.2 Encrypted
Equal Housing Lender