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Illustration: Rebecca Zisser/Axios

Apple’s very successful iPhone App Store is under attack from multiple directions, with users and developers criticizing its business model.

Why it matters: If the burgeoning criticism leads to concrete legal results, it could undermine an Apple ecosystem that's already under threat from other tech giants like Google and Facebook.

Driving the news: Customers and developers take issue with the portion of some App Store transactions that Apple takes for itself.

  • Users can sue Apple for allegedly exercising monopoly power over the market for third-party apps and driving up prices, the U.S. Supreme Court ruled 5-4 on Monday.
  • Developers have signaled concerns in recent years with Apple’s 30% cut of new in-app subscriptions. Spotify has escalated those worries into a full-blown antitrust complaint against Apple in Europe, on the grounds that the fee hurts its ability to compete with Apple Music.
  • Apple has said that after "using the App Store for years to dramatically grow their business, Spotify seeks to keep all the benefits of the App Store ecosystem — including the substantial revenue that they draw from the App Store’s customers — without making any contributions to that marketplace."

App creators also have no choice but to use Apple's store to get to its customers — unlike on Google's Android, where they can pursue alternate means of access.

Flashback: Steve Jobs was opposed to third-party apps for the the iPhone when it launched in 2007 — believing that web-based applications would suffice — before changing course.

The bigger picture: A change in the App Store status quo would come as Apple looks to broaden and deepen its customers’ relationship with its ecosystem of products and draw more revenue from services.

  • Apple is increasingly rolling out its own services, like Apple News+ and its forthcoming streaming offering, that will compete with third-party apps in its store.
  • The challenges to the App Store could impede that services push should it seriously call this model into question.
  • Plus, Axios’ Joe Uchill notes: The App Store's software curation is an effective cybersecurity tool, since Apple checks for backdoors, surveillance, and privacy flaws, keeping the iOS software pool relatively safe. Any change that reduces Apple's control over app curation could also make using the iPhone a little more dangerous.

What’s next:

  • The Supreme Court didn’t rule on the actual monopoly question — so that may play out in the lower courts.
  • "We’re confident we will prevail when the facts are presented and that the App Store is not a monopoly by any metric," said an Apple spokesperson.
  • The Financial Times has reported that the European Commission is expected to start an investigation into the Spotify case.

Go deeper

6 hours ago - Health

FDA advisory panel recommends Pfizer boosters for those 65 and older

A healthcare worker prepares a dose of the Pfizer-BioNTech Covid-19 vaccine at the Key Biscayne Community Center on Aug. 24, 2021. Photo: Eva Marie Uzcategui/Bloomberg via Getty Images

A key Food and Drug Administration advisory panel on Friday overwhelmingly voted against recommending Pfizer vaccine booster shots for younger Americans, but unanimously recommended approving the third shots for individuals 65 and older, as well as those at high-risk of severe COVID-19.

Why it matters: While the votes are non-binding, and the FDA must still make a final decision, Friday's move pours cold water on the Biden administration's plan to begin administering boosters to most individuals who received the Pfizer vaccine later this month.

6 hours ago - World

France recalls ambassadors from U.S. and Australia over submarine deal

Secretary of State Antony Blinken (L), French Foreign Minister Jean-Yves Le Drian (C), and French ambassador to the U.S. Philippe Etienne. Photo: Nicholas Kamm/AFP via Getty Images

France has taken the extraordinary step of recalling its ambassadors to the U.S. and Australia after both countries blindsided their French allies with a new military pact and submarine contract, the French Foreign Ministry announced on Friday.

The backstory: While sealing an agreement with the U.S. and U.K. to acquire nuclear submarines, Australia ripped up an existing $90 billion submarine deal with France. That led senior French officials to accuse the U.S. of a "stab in the back."

Updated 7 hours ago - World

In reversal, Pentagon now says drone strike killed 10 Afghan civilians

Caskets for the dead are carried towards the gravesite as relatives and friends attend a mass funeral for members of a family that is said to have been killed in a U.S. drone airstrike, in Kabul on Aug. 30. Photo: Marcus Yam/Los Angeles Times via Getty Images

A U.S. drone strike launched on Aug. 29 killed 10 civilians in Afghanistan, including seven children, rather than the Islamic State extremists the Biden administration claimed it targeted, the Pentagon said Friday.

Why it matters: U.S. Central Command said at the time that officials "know" the drone strike "disrupted an imminent ISIS-K threat" to Kabul's airport, and that they were "confident we successfully hit the target."