While vocal app developers accused Apple last week of spinning a lawsuit settlement into an App Store change that was barely a change at all, the company appears to be making a true, if small concession today: Apple says it will let developers of "reader" apps (think Netflix, Spotify, and Amazon's Kindle app) directly link their customers to their own sign-up website, where they could potentially skirt Apple's in-app payment system (and its 30 percent cut) entirely, in those cases where they haven't already. From a report: In a press release, Apple claims that the move will close an investigation by the Japan Fair Trade Commission (JFTC), and that it'll only apply to those sorts of "reader" apps right now -- a category that was originally designed by Apple to placate companies like Netflix and Hulu by allowing them to let users simply sign into their existing account instead of signing up for a new subscription via the App Store (and having to pay Apple's fees).

The JFTC has confirmed the agreement in a press release of its own, saying that the move by Apple "would eliminate the suspected violation of the Antimonopoly Act." The commission, which has been investigating Apple since 2016, says the company has pledged to report on the status of app review transparency once a year for the next three years. According to the JFTC, Apple proposed changing its app review guidelines in response to the investigation.

Apple's plan to digitize your wallet is slowly taking shape. What started with boarding passes and venue tickets later became credit cards, subway tickets, and student IDs. Next on Apple's list to digitize are driver's licenses and state IDs, which it plans to support in its iOS 15 update expected out later this year. From a report: But to get there it needs help from state governments, since it's the states that issue driver's licenses and other forms of state identification, and every state issues IDs differently. Apple said today it has so far secured two states, Arizona and Georgia, to bring digital driver's license and state IDs. Connecticut, Iowa, Kentucky, Maryland, Oklahoma, and Utah are expected to follow, but a timeline for rolling out wasn't given.

Apple said in June that it would begin supporting digital licenses and IDs, and that the TSA would be the first agency to begin accepting a digital license from an iPhone at several airports, since only a state ID is required for traveling by air domestically within the United States. The TSA will allow you to present your digital wallet by tapping it on an identity reader. Apple says the feature is secure and doesn't require handing over or unlocking your phone. The digital license and ID data is stored on your iPhone but a driver's license must be verified by the participating state. That has to happen at scale and speed to support millions of drivers and travelers while preventing fake IDs from making it through. The goal of digitizing licenses and IDs is convenience, rather than fixing a problem. But the move hasn't exactly drawn confidence from privacy experts, who bemoan Apple's lack of transparency about how it built this technology and what it ultimately gets out of it.

A federal judge was recently found to have owned Apple stock while presiding over a case brought against the tech giant by Nokia, though the discovery is unlikely to lead to further legal action. AppleInsider reports: Apple and Nokia were embroiled in a bitter patent dispute from 2009 to 2011, with both companies filing a series of legal complaints and regulatory challenges as competition in the smartphone market came to a head. The issue was ultimately settled in June 2011, and while terms of the agreement were kept confidential, Apple was expected to make amends with a one-time payment and ongoing royalties. According to a new court filing on Monday, a federal judge presiding over one of many scattershot legal volleys filed by Nokia owned stock in Apple when the suit was lodged in 2010. Judge William M. Conley of the U.S. District Court for the Western District of Wisconsin disclosed the potential conflict of interest in a letter to both parties dated Aug. 27.

"Judge Conley informed me that it has been brought to his attention that while he presided over the case he owned stock in Apple," writes Joel Turner, the court's chief deputy clerk. "His ownership of stock neither affected nor impacted his decisions in this case." It is unclear how many shares Judge Conley possessed during the case, but ownership of company stock in any capacity would have required his recusal under the Code of Conduct for United States Judges. An advisory from the Judicial Conference Codes of Conduct Committee explains that disqualifying factors should be reported "as soon as those facts are learned," even if the realization occurs after a judge issues a decision.

"The parties may then determine what relief they may seek and a court (without the disqualified judge) will decide the legal consequence, if any, arising from the participation of the disqualified judge in the entered decision," Advisory Opinion 71 reads, as relayed by Turner. Apple and Nokia are invited to respond to Conley's disclosure by Oct. 27 should they wish to seek redress, though the companies are unlikely to take action considering the case was not a lynchpin in Nokia's overarching strategy.

Apple has barred employees from creating a Slack channel to discuss pay equity. The Verge reports: A member of the employee relations team, Apple's version of HR, said that while the topic was "aligned with Apple's commitment to pay equity," it did not meet the company's Slack Terms of Use. "Slack channels are provided to conduct Apple business and must advance the work, deliverables, or mission of Apple departments and teams," the employee relations representative told employees. The company's rules for the in-office chat app say that "Slack channels for activities and hobbies not recognized as Apple Employee clubs or Diversity Network Associations (DNAs) aren't permitted and shouldn't be created."

But that rule has not been evenly enforced. Currently, Apple employees have popular Slack channels to discuss #fun-dogs (more than 5,000 members), #gaming (more than 3,000 members), and #dad-jokes (more than 2,000 members). On August 18th, the company approved a channel called #community-foosball. The cat and dog channels are not part of official clubs, and all of these channels were specifically created to talk about non-work activities. "Discussing pay equity is a protected activity under federal, state, and local law," says employment attorney Vincent P. White. "Everyone agrees on that. For them to try and impair employees' ability to discuss pay equity and diversity in the workplace is a clear cut act of retaliation."

Apple's push to bring satellite capabilities to the iPhone will be focused on emergency situations, allowing users to send texts to first responders and report crashes in areas without cellular coverage. From a report: The company is developing at least two related emergency features that will rely on satellite networks, aiming to release them in future iPhones, according to a person with knowledge of the situation. Apple has been working on satellite technology for years, with a team exploring the concept since at least 2017, Bloomberg has reported. Speculation that the next iPhone will have satellite capabilities ramped up this week after TF International Securities analyst Ming-Chi Kuo said the phone will probably work with spectrum owned by Globalstar. That's led to conjecture that the iPhone will become something akin to a satellite phone, freeing users from having to rely on cell networks. But Apple's plan is initially more limited in scope, according to the person, with the focus on helping customers handle crisis scenarios.

Google and Apple will have to open their app stores to alternative payment systems in South Korea [Editor's note: the link may be paywalled; alternative source], threatening their lucrative commissions on digital sales. From a report: A bill passed Tuesday by South Korea's National Assembly is the first in the world to dent the tech giants' dominance over how apps on their platforms sell their digital goods. It will become law once signed by President Moon Jae-in, whose party strongly endorsed the legislation. The law amends South Korea's Telecommunications Business Act to prevent large app-market operators from requiring the use of their in-app purchasing systems. It also bans operators from unreasonably delaying the approval of apps or deleting them from the marketplace -- provisions meant to head off retaliation against app makers.

Companies that fail to comply could be fined up to 3% of their South Korea revenue by the Korea Communications Commission, the country's media regulator. The law will be referenced by regulators in other places -- such as the European Union and the U.S. -- that also are scrutinizing global tech companies, said Yoo Byung-joon, a professor of business at Seoul National University who researches digital commerce. "Korea's decision reflects a broader trend to step up regulation of technology-platform businesses, which have been criticized for having too much power," Mr. Yoo said.

Today, Apple announced that it has acquired Primephonic, a service that specializes in streaming the classical genre, and will incorporate the app's functionality and playlists into Apple Music. The result will be "a significantly improved classical music experience," Apple said in a press release. There will also be a standalone Apple Music classical app coming sometime in 2022. The Verge reports: Effective immediately, Primephonic is no longer accepting new customers, and the service as it exists today will shut down on September 7th. Apple says Primephonic's playlists and "exclusive audio content" will be first to be integrated into Apple Music. Down the line, it'll add "the best features of Primephonic, including better browsing and search capabilities by composer and by repertoire, detailed displays of classical music metadata, plus new features and benefits." In a show of how serious Apple is about appealing to classical fans, the company says "a dedicated classical music app" will launch next year that will use Primephonic's "classical user interface that fans have grown to love."

According to a study from Finbold, consumers spent an estimated $41.5 billion on apps from the Apple App Store during the first six months of 2021, which is almost double compared to $23.4 billion spent by Android consumers. 9to5Mac reports: The Apple App Store spendings in H1 21 represents a growth of 22.05% from a similar period in 2020. Cumulatively, spending on the two platforms recorded a growth of 24.8%, year-over-year hitting a total of $64.9 billion: "Mobile app spending grew in 2021 mainly due to consumer behavior resulting from the containment measures around the coronavirus pandemic. From the H1 spending, the outstanding assumption is that consumers' demand might not be slowing down, considering that most global jurisdictions have eased the pandemic control measures with the vaccine rollout."

The report shows that although the App Store spending has remained significant, Google Play appears to be catching up by recording the highest growth rate between H1 2020 and H1 2021: 30% YoY. So even with the App Store doing way better, "Android flourished as the pandemic remained persistent in countries with an Android-dense population." The Finbold survey shows that to keep on the top, Apple's are countering with the Small Business Program, which reduces the App Store commission from 30% to 15% for developers grossing less than $1 million a year. Although the report shows that the spending on the App Store and Google Play Store were mainly dominated by the gaming sector, in which consumers globally spend $10.32 billion on mobile games in the first half of 2021, the survey highlights that the top three grossing mobile apps worldwide for H1 2021 are TikTok, YouTube, and Tinder.

With Apple's latest iPhone just around the corner, reports suggest that it will include support for satellite communications, which consumers could use when terrestrial-based 4G and 5G are not available. The one getting most of the glory: Globalstar, the once-embattled satellite company. From a report: Globalstar shares shot up more than 40% at one point today. Shares in satellite companies Iridium and AST SpaceMobile also rose, more than 9% and 4%, respectively. One report tracks to TF International Securities analyst Ming-Chi Kuo, who, as MacRumors explained, discussed how the iPhone 13 lineup will feature hardware that is able to connect to low earth orbit (LEO) satellites, which could allow iPhone 13 users to make calls and send messages. The MacRumors report notes that the upcoming iPhone 13 supposedly features a customized Qualcomm X60 baseband chip that supports satellite communications; other smartphone brands reportedly are waiting until 2022 for the X65 baseband chip for turning on satellite communications functionality. While there are ample ways to support LEO connectivity in handsets, the bottom line is: The "simplest scenario" for providing LEO communications to users is if network operators work with Globalstar, according to the Kuo-based report. That raised some eyebrows, rightly so.

Although Apple is making some changes to its App Store policies and setting up a $100 million fund for small developers, critics say that the terms of a class-action settlement don't meaningfully loosen the company's grip on its digital marketplace. From a report: Spotify Chief Legal Officer Horacio Gutierrez: "Apple's proposed concessions fail to address the most basic aspects of their anticompetitive and unfair App Store practices. They are attempting to distract policymakers and regulators and slow down the momentum that's building around the world to address their behavior."

Match Group: "This is a raw demonstration of their monopolistic power: making capricious changes designed to spur good PR for their benefit right as legislation, regulatory scrutiny and developer complaints are closing in on them. We hope everyone sees this for what it is -- a sham."

Sen. Amy Klobuchar (D-NY): "This new action by Apple is a good first step towards addressing some of these competition concerns, but more must be done to ensure an open, competitive mobile app marketplace, including commonsense legislation to set rules of the road for dominant app stores."

Infosecurity magazine reports: Some of the world's biggest tech companies have committed tens of billions of dollars to improving supply chain security, closing industry skills gaps and driving security awareness among the public, according to the White House.

As reported by Infosecurity yesterday, the Biden administration welcomed the CEOs of Microsoft, Apple, Google, IBM and others to a meeting yesterday to discuss the "whole-of-nation" effort needed to address cybersecurity threats." The result of that encounter has been a series of commitments from these firms, including $10bn from Google over the next five years to expand zero trust and improve supply chain and open source security. The tech giant will apparently also help 100,000 Americans earn "digital skills certificates."

IBM said it would train 150,000 people in cyber skills over the coming three years and focus on improving the diversity of the security workforce, while Microsoft has committed $20bn over five years to drive security by design, and $150m for federal, local and state governments. Apple will establish a new program to improve supply chain security, including among its 9000 US suppliers, with multi-factor authentication (MFA), vulnerability remediation, event logging and incident response all playing a key role. Amazon is making MFA devices available to all AWS customers and rolling out the security training it offers employees to the general public.

Aside from these commitments, the White House announced the expansion of its Industrial Control Systems Cybersecurity Initiative, from the electricity sector to natural gas pipelines, and said the National Institute of Standards and Technology (NIST) would develop a new framework for supply chain security. In another potentially significant move, insurer Resilience said it would require policyholders to meet a threshold of cybersecurity best practice as a condition of receiving coverage — something experts have been demanding for some time across the industry.
NextGov.com also quotes the president's remarks about a cybersecurity executive order issued May 12th: "Because of that order, government will only buy tech products that meet certain cybersecurity standards, which will have a ripple effect across the software industry, in our view, ultimately improving security for all Americans,"

Tim Cook celebrated 10 years as Apple CEO by collecting and selling off three quarters of a billion dollars' worth of stock. CNN reports: The transactions were revealed in a regulatory filing Thursday, which showed that Cook had acquired and sold more than 5 million shares of the iPhone maker. As head of the world's most valuable company, Cook has received lofty stock awards in recent years. One of the incentives was tied to Apple's performance in the S&P 500 over the past three years. The stock award was triggered this week because the firm was one of the index's top performers, generating shareholder returns of nearly 192% from August 2018 to 2021, it said in a filing. Cook's windfall came just days after he also donated 70,000 Apple shares (worth about $10 million) to charity, according to a separate regulatory filing Tuesday. It did not disclose the name of the recipient.

Cook joined Apple in 1998 and served in a variety of senior roles before assuming his current position, including chief operating officer and executive vice president of worldwide sales and operations. He was named CEO in August 2011, after co-founder Steve Jobs famously stepped down. Jobs died weeks later from complications of pancreatic cancer. Prior to joining Apple, Cook worked at Compaq and IBM (IBM).

Apple announced today it has reached a proposed settlement in a lawsuit filed against it by developers in the United States. The agreement, which is still pending court approval, includes a few changes, the biggest one being that developers will be able to share information on how to pay for purchases outside of their iOS app or the App Store -- which means they can tell customers about payment options that aren't subject to Apple commissions. The settlement also includes more pricing tiers and a new transparency report about the app review process. From a report: The class-action lawsuit was filed against Apple in 2019 by app developers Donald Cameron and Illinois Pure Sweat Basketball, who said the company engaged in anticompetitive practices by only allowing the downloading of iPhone apps through its App Store. In today's announcement, Apple said it is "clarifying that developers can use communications, such as emails, to share information about payment methods outside of their iOS app. As always, developers will not pay Apple a commission on any purchases taking place outside of their app or the App Stores."

It's long been known that Google pays Apple a hefty sum every year to ensure that it remains the default search engine on iPhone, iPad, and Mac. Now, a new report from analysts at Bernstein suggests that the payment from Google to Apple may reach $15 billion in 2021, up from $10 billion in 2020. 9to5Mac reports: In the investor note, seen by Ped30, Bernstein analysts are estimating that Google's payment to Apple will increase to $15 billion in 2021, and to between $18 billion and $20 billion in 2022. The data is based on "disclosures in Apple's public filings as well as a bottom-up analysis of Google's TAC (traffic acquisition costs) payments." Bernstein analyst Toni Sacconaghi says that Google is likely "paying to ensure Microsoft doesn't outbid it." The analysts outline two potential risks for the Google payment to Apple, including regulatory risk and Google simply deciding the deal is no longer worth it:

In an interview earlier this year, Apple's senior director of global privacy Jane Horvath offered reasoning for the deal, despite privacy concerns: "Right now, Google is the most popular search engine. We do support Google but we also have built-in support for DuckDuckGo, and we recently also rolled out support for Ecosia."

A South Korean parliamentary committee voted on Wednesday to recommend amending a law, a key step toward banning Google and Apple from forcibly charging software developers commissions on in-app purchases, the first such curb by a major economy. From a report: Apple and Alphabet's Google have faced global criticism because they require software developers using their app stores to use proprietary payment systems that charge commissions of up to 30%.

In a statement on Tuesday, Apple said the bill "will put users who purchase digital goods from other sources at risk of fraud, undermine their privacy protections," hurt user trust in App Store purchases and lead to fewer opportunities for South Korean developers. Wilson White, senior director of public policy at Google, said "the rushed process hasn't allowed for enough analysis of the negative impact of this legislation on Korean consumers and app developers". Experts said app store operators could assure security in payment systems other than their own by working with developers and other companies. Further reading: Apple and Google's Fight in Seoul Tests Biden in Washington.

The US Patent and Trademark Office has granted a patent to Apple for a dual-display MacBook with a virtual keyboard replacing the traditional keyboard and with the ability to wirelessly charge an iPhone. 9to5Mac reports: As reported by Patently Apple, this patent was submitted three years ago, and only now has Apple won it. With this patent, the company could take a radical path and get rid of a physical keyboard. The interesting thing about this application is that while rumors suggest that Apple will remove the only touchable interface on the MacBook Pro, the Touch Bar, this patent imagines a MacBook with no physical keyboard at all. Patently Apple says this virtual keyboard could be rearranged, swapping the position of the virtual keyboard and trackpad. With a virtual keyboard, Apple could bring gestures from iOS and iPadOS as well, such as pinch, zoom, slide to select, and more. In the patent, Apple says this MacBook includes biometric sensors, which we could interpret as Face ID, fingerprint sensors (aka Touch ID), and a wireless charger, which would be in the left down corner of the notebook.

An anonymous reader quotes a report from The Los Angeles Times: A Los Angeles County man broke into thousands of Apple iCloud accounts and collected more than 620,000 private photos and videos in a plot to steal and share images of nude young women, federal authorities say. Hao Kuo Chi, 40, of La Puente, has agreed to plead guilty to four felonies, including conspiracy to gain unauthorized access to a computer, court records show. Chi, who goes by David, admitted that he impersonated Apple customer support staff in emails that tricked unsuspecting victims into providing him with their Apple IDs and passwords, according to court records. He gained unauthorized access to photos and videos of at least 306 victims across the nation, most of them young women, he acknowledged in his plea agreement with federal prosecutors in Tampa, Fla.

Chi said he hacked into the accounts of about 200 of the victims at the request of people he met online. Using the moniker "icloudripper4you," Chi marketed himself as capable of breaking into iCloud accounts to steal photos and videos, he admitted in court papers. Chi acknowledged in court papers that he and his unnamed co-conspirators used a foreign encrypted email service to communicate with each other anonymously. When they came across nude photos and videos stored in victims' iCloud accounts, they called them "wins," which they collected and shared with one another. "I don't even know who was involved," Chi said Thursday in a brief phone conversation. He expressed fear that public exposure of his crimes would "ruin my whole life."

The scam started to unravel In March 2018. A California company that specializes in removing celebrity photos from the internet notified an unnamed public figure in Tampa, Fla., that nude photos of the person had been posted on pornographic websites, according to [FBI agent Anthony Bossone]. The victim had stored the nude photos on an iPhone and backed them up to iCloud. Investigators soon discovered that a log-in to the victim's iCloud account had come from an internet address at Chi's house in La Puente, Bossone said. The FBI got a search warrant and raided the house May 19. By then, agents had already gathered a clear picture of Chi's online life from a vast trove of records that they obtained from Dropbox, Google, Apple, Facebook and Charter Communications. On Aug. 5, Chi agreed to plead guilty to one count of conspiracy and three counts of gaining unauthorized access to a protected computer. He faces up to five years in prison for each of the four crimes.

For months, Apple and Google have been fighting a bill in the South Korean legislature that they say could imperil their lucrative app store businesses. The companies have appealed directly to South Korean lawmakers, government officials and the public to try to block the legislation, which is expected to face a crucial vote this week. From a report: The companies have also turned to an unlikely ally, one that is also trying to quash their power: the United States government. A group funded by the companies has urged trade officials in Washington to push back on the legislation, arguing that targeting American firms could violate a joint trade agreement.

The South Korean legislation would be the first law in the world to require companies that operate app stores to let users in Korea pay for in-app purchases using a variety of payment systems. It would also prohibit blocking developers from listing their products on other app stores. How the White House responds to this proposal poses an early test for the Biden administration: Will it defend tech companies facing antitrust scrutiny abroad while it applies that same scrutiny to the companies at home?

Washington has a longstanding practice of opposing foreign laws that discriminate against American firms, sometimes even when doing so conflicts with domestic policy debates. But President Biden wants a consistent approach to his concerns about the tech giants' incredible power over commerce, communications and news. In July he signed an executive order to spur competition in the industry, and his top two antitrust appointees have long been vocal critics of the companies. The approach the White House chooses may have widespread implications for the industry, and for the shape of the internet around the world.

According to 9to5Mac, Apple has confirmed that it's already been scanning iCloud Mail for Child Sexual Abuse Material (CSAM), and has been doing so since 2019. It has not, however, been scanning iCloud Photos or iCloud backups, which sent the internet into a frenzy when it announced its intents to begin doing so. From the report: The clarification followed me querying a rather odd statement by the company's anti-fraud chief [Eric Friedman]: that Apple was "the greatest platform for distributing child porn." That immediately raised the question: If the company wasn't scanning iCloud photos, how could it know this? [...] Apple confirmed to me that it has been scanning outgoing and incoming iCloud Mail for CSAM attachments since 2019. Email is not encrypted, so scanning attachments as mail passes through Apple servers would be a trivial task. Apple also indicated that it was doing some limited scanning of other data, but would not tell me what that was, except to suggest that it was on a tiny scale. It did tell me that the "other data" does not include iCloud backups.

Although Friedman's statement sounds definitive -- like it's based on hard data -- it's now looking likely that it wasn't. It's our understanding that the total number of reports Apple makes to CSAM each year is measured in the hundreds, meaning that email scanning would not provide any kind of evidence of a large-scale problem on Apple servers. The explanation probably lays in the fact that other cloud services were scanning photos for CSAM, and Apple wasn't. If other services were disabling accounts for uploading CSAM, and iCloud Photos wasn't (because the company wasn't scanning there), then the logical inference would be that more CSAM exists on Apple's platform than anywhere else. Friedman was probably doing nothing more than reaching that conclusion.

An anonymous reader quotes a report from Motherboard, written by Lorenzo Franceschi-Bicchierai: A group of Apple workers has announced a campaign to improve working conditions within the company. On Monday, company employees launched a Twitter account called Apple Workers to gather stories from colleagues about workplace issues such as "persistent patterns of racism, sexism, inequity, discrimination, intimidation, suppression, coercion, abuse, unfair punishment, and unchecked privilege." The account links to a website that contains the campaign's announcement as well as a link to join it.

"We've exhausted all internal avenues. We've talked with our leadership. We've gone to the People team. We've escalated through Business Conduct. Nothing has changed," the announcement read. "It's time to Think Different." "Connect with us to share your own experience, stay informed, or unite in solidarity with other current or former Apple workers. United, we can collaborate to iterate a healthier workplace," the announcement continued. "We are working together to craft a statement on our behalf, reflecting our stories and an outline of changes we expect to see Apple make."

The site also links to a "Wage Transparency Survey," an initiative led by Cher Scarlett, an Apple employee who has recently organized an internal survey to find out if there are wage gaps inside the company. "Apple colleagues of all types -- we are gathering in solidarity to push Apple to change internally," Scarlett wrote on Twitter. The Apple employees are organizing in part on Discord channel, according to the person who runs the channel, who goes by Fudge. The person described themselves as a former Apple Authorized Service Providers employee, and asked to remain anonymous. Fudge said that the Discord channel has around 200 current and former employees.