Spotify and Tinder admit to Congress that they are afraid of Google and Apple

Some app makers who rely on mobile distribution from Apple and Google fear the power of the tech giants, according to testimony before Congress on Wednesday.
The session brought together representatives from Apple and Google and a number of their critics, including Match Group - which owns the dating app Tinder - and Tile, which manufactures devices that help users find lost objects and is currently facing competition from technology. The new Apple AirTag.

The hearing comes as lawmakers from both parties work on updates to antitrust laws, which could diminish the power a few tech giants wield over many digital markets.

Among this power is the dominance of Apple and Google over the management of the two main distribution platforms for applications, "Apple and Google", while giving preference to their products.

During the hearing, the app makers expressed their fear that it would be easy for either company to undermine their business by making small changes to their app store rules. They also complained about high fees for in-store purchases and unclear enforcement of standards.

Threats
Many executives accused Apple and Google of threatening their businesses. Sign said Google called Match Group on Tuesday night to ask why his testimony differed from the company's comments on the last call to discuss profits.

The Match Group complained that Google made "false claims about its platform it claims to be open," and its "monopoly power".

"We're all scared," Jared Sane, the chief legal officer of the Match Group, told Democratic Senator Amy Klobuchar, chair of the Senate Antitrust Subcommittee.
Wilson White, chief director of public policy and government relations at Google, said that an employee working in the business development team at Google contacted Match Group to ask a "honest question."

In turn, Horatio Gutierrez, chief legal officer at Spotify, said he cites "at least 4 clear examples of threats of retaliation" by Apple after Spotify decided to speak publicly about Apple's anti-competitive behavior and the company's high corporate fees deducted from the company. On their digital products that they sell through the Apple Store.

He added that this includes threats to remove the Spotify app, refuse to promote it, or wait months for minor app updates to be approved.

Competitive fees and products
Several app makers have also complained about the fees the two giants charge for purchases of digital products within their apps.

Gutierrez complained about what he called a "blocking request" made by Apple to prevent Spotify from communicating with its users about how to upgrade to its paid version.

At the same time, Apple runs a rival service, Apple Music, which has no such restrictions. This gives the Apple version an edge, Gutierrez said.

Representatives from Apple and Google told lawmakers that the fees imposed on developers are aimed at covering the costs paid for appropriately distributing and securing apps.

In addition to complaints about fees, developers were concerned that their competing products for some of Apple's products had motivated them to make unfair decisions towards them.

For example, Tale's general counsel Kerstin Darrow said the company asked Apple for permission to use broadband technology on iPhones to make its tracking technology more accurate than it could get with just bluetooth. It said Apple rejected the request, then kept the technology in order to launch its competing product, AirTags, which it announced on Tuesday.

Unclear criteria
App makers have also complained that Apple's implementation of its app store rules may appear arbitrary and delay the launch of key features. Sane said that Apple may tell developers what rule they violated, but not exactly how or what they do to fix it.

He said that the dating application "Tinder" tried to provide a copy of the application with a feature that aims to protect users by notifying them when they are in a country where they may be exposed to a risk when revealing their sexuality or gender identity.

He said it took two months and a conversation between senior Match Group executives and Apple to solve the problem.

App makers emphasized their dependence on app stores due to their rapid reach to consumers. But they stated that the relationship is not as symbiotic as Apple and Google describe it.

"We did not succeed because of what Apple provided us," Gutierrez said. "We have succeeded despite the interference of Apple ... and we would have been more successful had it not been for their anti-competitive behavior."

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