Developers sue Apple over app store fees

SAN FRANCISCO, United States - A lawsuit filed Tuesday by developers alleges Apple is abusing its monopoly position in its online marketplace to extract excessive fees from those creating iPhone applications.

The lawsuit, which was filed in federal court in California, claims Apple cornered the market with its iOS App Store, collecting a 30 percent commission on all app sales and in-app purchases.

The complaint comes as Apple holds its Worldwide Developers Conference in San Jose, California and just weeks after the US Supreme Court allowed a consumer lawsuit against Apple on similar grounds to proceed.

Attorneys for the plaintiffs, who are seeking class-action status for the suit, said Apple requires developers selling products through the App Store to pay an annual fee of $99, which hurts small and new developers.

They also said that by keeping all iOS apps into 1 marketplace -- some 2 million were available last year -- consumers never see most apps.

"Between Apple's 30 percent cut of all App Store sales, the annual fee of $99 and pricing mandates, Apple blatantly abuses its market power to the detriment of developers, who are forced to use the only platform available to them to sell their iOS app," said Steve Berman of the law firm Hagens Berman, which is representing the plaintiffs.

"In a competitive landscape, this simply would not happen."

The lawsuit seeks to force Apple to end its monopoly and allow competition in the distribution of iOS apps.

It also seeks to end Apple's pricing requirement including the minimum price mandate of 99 cents for paid apps.

Apple did not immediately respond to a query on the lawsuit.

In the past, Apple has defended its control of the App Store, saying it enables the iPhone maker to protect against malicious software and maintain quality standards.

Last month, the Supreme Court ruled 5-4 that consumers could proceed with a separate lawsuit on app pricing, rejecting Apple's argument that consumers lacked standing because the tech giant was merely an intermediary with app developers.

The class-action lawsuit from 2011 maintains that Apple abuses its monopoly position, resulting in higher prices.

source: news.abs-cbn.com

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source: www.abs-cbnnews.com

Apple's iOS App Store suffers first major attack

BOSTON - Apple Inc. said on Sunday it is cleaning up its iOS App Store to remove malicious iPhone and iPad programs identified in the first large-scale attack on the popular mobile software outlet.

The company disclosed the effort after several cyber security firms reported finding a malicious program dubbed XcodeGhost that was embedded in hundreds of legitimate apps.

It is the first reported case of large numbers of malicious software programs making their way past Apple's stringent app review process. Prior to this attack, a total of just five malicious apps had ever been found in the App Store, according to cyber security firm Palo Alto Networks Inc (PANW.N).

The hackers embedded the malicious code in these apps by convincing developers of legitimate software to use a tainted, counterfeit version of Apple's software for creating iOS and Mac apps, which is known as Xcode, Apple said.

"We’ve removed the apps from the App Store that we know have been created with this counterfeit software," Apple spokeswoman Christine Monaghan said in an email. "We are working with the developers to make sure they’re using the proper version of Xcode to rebuild their apps."

She did not say what steps iPhone and iPad users could take to determine whether their devices were infected.

Palo Alto Networks Director of Threat Intelligence Ryan Olson said the malware had limited functionality and his firm had uncovered no examples of data theft or other harm as a result of the attack.

Still, he said it was "a pretty big deal" because it showed that the App Store could be compromised if hackers infected machines of software developers writing legitimate apps. Other attackers may copy that approach, which is hard to defend against, he said.

"Developers are now a huge target," he said.

Researchers said infected apps included Tencent Holdings Ltd's (0700.HK) popular mobile chat app WeChat, car-hailing app Didi Kuaidi and a music app from Internet portal NetEase Inc.

The tainted version of Xcode was downloaded from a server in China that developers may have used because it allowed for faster downloads than using Apple's U.S. servers, Olson said.

Chinese security firm Qihoo360 Technology Co (QIHU.N) said on its blog that it had uncovered 344 apps tainted with XcodeGhost.

Tencent said on its official WeChat blog that the security flaw affects WeChat 6.2.5, an old version of its popular chatting app, and that newer versions were unaffected. A preliminary investigation showed there had been no data theft or leakage of user information, the company said.

Apple declined to say how many apps it had uncovered.

source: www.abs-cbnnews.com