The App Store

The Apple App Store, launched in 2008, revolutionized the phone, transforming it from a communication tool into a pocket-sized Swiss Army knife.  This curated marketplace offers a staggering array of apps, from productivity suites that rival desktops to augmented reality games that blur the line between the real and virtual. This fostered a multi-billion dollar app economy, empowering both developers and users. Apple’s strict control over the App Store ensures a high level of quality and security, providing users with a sense of safety in the apps they download.

The App Store provides a platform for a variety of apps, from mega apps like YouTube and TikTok to gaming apps like Roblox and Minecraft to even niche apps like Delta (the emulator not the airline) and Insect Food Scanner, however, just like any other market the App Store has to face several issues that could damage the integrity of the platform.

Copyright

Intellectual Property (IP) theft is a key issue the App Store aims to combat. IP theft can occur in four ways: Trademark infringement, Patent infringement, trade secret misappropriation, and lastly the one we’ll be focusing on, Copyright infringement.

Copyright infringement occurs when someone reproduces, distributes, makes derivatives, publicly performs, or publicly displays a copyrighted work without the owner’s permission. For a work to receive copyright protection under U.S. law, it must be (1) Copyrightable subject matter (book, song, play, software, etc.), (2) Original (not copied), (3) Fixed in a tangible medium of expression (written down, recorded, etc.) (What is Copyright).

An app developer commits copyright infringement when it uses another’s copyrighted material, such as copying another app's functionality or using copyrighted content like music, images, or text without permission or including derivative versions of the copyrighted material (for example, pirated or hacked versions of games or any other repacked versions of the original).

Look at these daily chess puzzles from Chess.com and Lichess. Suppose you operate an app store and Chess.com claims Lichess.org is infringing on its copyright, how would you resolve the situation?

Chess.com

Lichess.org

Chess is a game that has been played long before the founding of the U.S., therefore there is no copyright protection on the game itself. However, “content such as text, graphics, user interfaces, visual interfaces, photographs, logos, sounds, music, artwork, and code” can be copyrighted (User Agreement - Chess.com, section 2. A).

Developers who infringe on another’s copyright in Apple’s App Store will be held liable under copyright law and “will be solely responsible for all costs, expenses, losses and liabilities incurred” as outlined in the Apple Developer Program License Agreement (ADPLA, p.17, section 3.1). Although the developer holds responsibility for the infringement, Apple could be liable for the developer’s infringement under certain circumstances. This liability is called secondary copyright infringement.

Under the Digital Millennium Copyright Act (DMCA), for Apple to not incur liability, it (1) must not be aware of infringing content or must immediately remove infringing content once it becomes aware, (2) must not financially benefit from infringing content, (3) must terminate users who repeatedly infringe copyrights (Resources on Online Service Provider Safe Harbors). So, Apple proactively removes infringing apps upon becoming aware of violations and terminates the developer’s account if necessary. Through these actions, Apple seeks to avoid financially benefiting from infringing content, thus complying with the DMCA.

Malware and Scams

The Apple App Store is renowned for its excellent security, but there can also be hidden threats. These "wolves in sheep's clothing" often appear as malware or scams disguised as legitimate apps. 

“Malware, short for malicious software, refers to any intrusive software developed by cybercriminals (often called hackers) to steal data and damage or destroy computers and computer systems” (What is Malware). Malware is an issue that plagues any software market or distributor. While the App Store is considered secure, malicious apps have appeared on the App Store. Developers have bypassed the App Store review by disguising functionality, phishing within the app, tricking the user into giving the app excessive permissions, or tricking other developers into using malicious software to construct apps.

“A scam is any app that takes money from customers using misleading tactics” (Albergotti). Scams can come in many forms. They range from apps that simply fail to deliver on their promises to apps that deliberately attempt to deceive consumers, using fake reviews and hidden fees.

We spoke with Sean Cameron, Head of App Store Legal at Apple, to learn more about some key legal issues relating to the App Store. Cameron manages a team of attorneys who respond to consumer, developer, and regulatory matters in the U.S. and internationally. He indicated that recently crypto scams have become a common vehicle for scammers and fraudsters. He explained that there has been a dramatic increase in the number of cryptocurrency apps, wallets, and exchanges, many of which are scams. The collapse of a major cryptocurrency exchange, FTX, has shown the public the lawlessness within these unregulated financial exchanges.

Government Regulation

The App Store conducts business in 175 different countries and must comply with a multitude of international laws and regulations, including laws on privacy, intellectual property, consumer protection, and content laws. The App Store must comply with two notable policies: the GDPR and DMA. 

“The General Data Protection Regulation (GDPR) is one of the world’s strictest consumer privacy and data security laws, requiring organizations – regardless of their location – that process the personal data of anyone in the EU to comply with data protection standards and privacy rights” (Bloomberg Law). On the other hand, the Digital Markets Act (DMA) focuses on ensuring fair and open digital markets. 

The DMA prevents gatekeepers – large digital platforms like the App Store – from unfairly favoring select apps, forcing users to use pre-installed software or apps, tracking users outside of the gatekeepers’ core platform, or stopping businesses from linking or offering services outside of the gatekeeper’s platform.

 In addition, according to Apple’s policies, developers hold the responsibility of “[fulfilling] any applicable regulatory requirements, including full compliance with all applicable laws, regulations, and policies related to the manufacturing, marketing, sale and distribution of Your Application in the United States” and “the laws, regulations and policies of any other applicable regulatory bodies in any countries, territories, or regions where You use or make Your Application available” (ADPLA, p.19, section 3.3.2).

What Apple Does

For an app to be published on the App Store, it must pass Apple’s App Review process. “Submissions to App Review… should be final versions with all necessary metadata and fully functional URLs included,” (App Review Guidelines) with detailed explanations of non-obvious features and in-app purchases. During this process, Apple makes its decision based on 5 factors:

  • Is the app safe to install and use?

  • Does the app work as intended?

  • What does the app sell?

  • Is the app’s User Interface (UI) useable?

  • Does the app comply with all legal requirements in the locations where it is available?

Apple employs automated systems to scan the submitted app’s software to detect code that might violate Apple’s policies or the law. In addition, Apple employs over 500 app reviewers to review new apps and every app update. Additionally, the App Store is a two-sided platform. Apple interacts with the developers who seek to create apps and the consumers who desire to purchase apps. So, if a customer has been defrauded or harmed by an app, the customer can come to Apple for a refund, and in appropriate circumstances, Apple will provide a refund.  

The App Store has revolutionized how we interact with our devices, offering a vast and diverse library of apps. However, this platform has its challenges. Apple tackles these problems through its rigorous App Review process and human and automated checks to weed out harmful apps. Additionally, regulations like the GDPR and DMA help ensure fair competition and user privacy.

References

 Office U.S. Copyright, “What Is Copyright?,” U.S. Copyright Office, accessed May 6, 2024, https://www.copyright.gov/what-is-copyright/.

 Office U.S. Copyright, “Resources on Online Service Provider Safe Harbors and Notice-and-Takedown System,” Section 512 of Title 17, accessed May 6, 2024, https://www.copyright.gov/512/.

Chess.com. “User Agreement.” User Agreement - Chess.com, January 17, 2024. https://www.chess.com/legal/user-agreement.

 “What Is Malware?,” Cisco, November 16, 2023, https://www.cisco.com/site/us/en/learn/topics/security/what-is-malware.html.

 Brendan Hesse, “Great, Now the Apple App Store Has Malware Too,” Lifehacker, August 8, 2022, https://lifehacker.com/great-now-the-apple-app-store-has-malware-too-1849386738.

 Reed Albergotti and Chris Alcantara, “Apple’s Tightly Controlled App Store Is Teeming with Scams,” The Washington Post, June 6, 2021, https://www.washingtonpost.com/technology/2021/06/06/apple-app-store-scams-fraud/.

 “The EU’s General Data Protection Regulation (GDPR),” Bloomberg Law, April 24, 2024, https://pro.bloomberglaw.com/insights/privacy/the-eus-general-data-protection-regulation-gdpr/.

 Apple, Inc., “App Review Guidelines,” Apple Developer, April 5, 2024, https://developer.apple.com/app-store/review/guidelines/#performance.