Is Steve Jobs closing off iPhone, iPod touch, and iPad to rival ad networks?

invisibleSHIELD case for iPadPeter Kafka wonders for AllThingsD, “Is Apple, which just launched its own ad network, crippling competitors that want to sell ads on its iPhones and iPads?”

“That’s how some competitors are interpreting a clause in the developer agreement Apple released last week when it announced the new operating system that will power its mobile devices,” Kafka reports. “They’re concerned about language in the contract that seems to ban apps from transmitting data that third-party ad networks would use to track their ads’ performance.”

“If they’re right, Apple’s contract would severely handicap rival ‘in-app’ ad networks–like Google’s AdMob–without formally banning them,” Kafka reports. “‘Ads don’t exist without analytics,’ says a mobile ad executive. ‘Can’t measure it, can’t bill for it.'”

MacDailyNews Take: Why would Apple allow a direct mobile device competitor like Google to have access to information about iPhone, iPod touch, and iPad users, including location data from the devices, along with numbers of units in use, among other things? Answer: Apple wouldn’t and shouldn’t. Does Amazon allow Barnes & Noble to gather information about how many Kindles access the network, their locations, and which books they’re buying and reading? Of course not. The answer to our headline, from Apple shareholders, at the very least, should be a definitive “He’d better be!”

Kafka continues, “The language in Apple’s agreement that worries ad networks also seems to cause problems for companies that only sell analytics, like Adobe’s Omniture.”

MacDailyNews Take: Tough shit.

Kafka continues, “[From Apple’s agreement], Section 3.3.9, which falls under the “User Interface, Data Collection, Local Laws and Privacy” section: ‘Notwithstanding anything else in this Agreement, Device Data may not be provided or disclosed to a third party without Apple’s prior written consent. Accordingly, the use of third party software in Your Application to collect and send Device Data to a third party for processing or analysis is expressly prohibited.'”

“This doesn’t expressly prohibit ad networks from selling ads, but it prevents them from selling targeted advertising, which is close to the same thing when it comes to mobile devices,” Kafka reports. “The same problem would plague analytics companies, which might be able to compile very broad usage info about apps, but little else.”

Full article here.

MacDailyNews Take: There’s a reason (besides the fact that, in our case at least, they pay significantly better) why we began the process of dumping AdMob (which Google is trying to buy) for Quattro Wireless on Jan. 5, 2010, the day that Apple bought Quattro. (Our transition from AdMob to Quattro was completed in late February with the release of MacDailyNews 2.0 app.) AdMob and other third-parties have long had access to far too much in-app critical information regarding and emanating from iPhone OS devices. Only Apple should retain access to such in-app data for competitive reasons.

[Attribution: CIO. Thanks to MacDailyNews Reader “TheLagosChap” for the heads up.]

51 Comments

  1. I think all the confusion people are having over Apple’s moves with the iPhone/iPad are directly related to their lack of understanding of what Apple is shaping that platform to be. Take a look at what Sony, Nintendo and Microsoft are doing with their gaming platforms – you have to code using the tools they specify, etc. – and it will suddenly make a lot more sense.

  2. It would have surprised me more if apple would play nice with their mobile ad-competitors. Now the world makes sense again. Steve jobs was unnaturally humble when he talked about iAd last week. Now we know he was acting. Nice!

  3. Of the childish pissing matches between Jobs and the flavor of the week and don’t forget those eloquent mdn “editorial” comments.

    This dictatorship mentality will backfire eventually, but steve will retire richer because of it and those that follow like sheep.

    I am an apple product fan. I am not an apple business fan.

  4. @ So tired – whereas those who whine and complain like anti-Apple sheep have all the answers as to what Apple should *really* be doing… not.

    Given Apple’s track record thus far, I’d rather trust that they know what they’re doing, than I would trust random commenters spouting their usual “advice” for Apple.

  5. hmmm maybe this is against the law? And a monopoly of some sort… hopefully some American or European government looks into Apple’s business and finds illegal activity! That would be awesome!

  6. You are all forgetting one thing. It’s my phone not Apple’s. It is my computer, not Apple’s. I don’t want Apple to tell me what I’m allowed to install on my computer any more than on my phone. I am a fan boy, but they are wrong.

    If I want to run Flash on my computer and crash my browser, that is my choice. I paid good money for my computer and I own it. If I want to run Flash on my phone and drain my battery, it is my phone, I also paid good money for it.

    This is not Apple’s iPhone, or Amazon’s kindle. It is mine.

    If they don’t want to share their network usage info with competitors fine. But if I want to install something and share all my credit cards and social security number with the world that is my business not theirs.

    Let’s be rational and adult.

    If Adobe wants to cross compile applications that run on the phone that is their choice. If Apple changes their iPhone OS and break those Flash apps that is their choice. And if I decide not to upgrade to the next iPhone OS because I value a particular Flash app more than the upgrade, that is my choice.

    Let’s not get confused here. I think MDN, you are doing a disservice to you readers by advocating that Apple be allowed to preempt their rights, and the rights of other third party developers. The open rules that we live by on our macs, should be applied to our phones as well.

    You didn’t like it when Verizon and Sprint, for their own good reasons disallowed certain applications on “their” phones. Why should we somehow tolerate that behavior from Apple. If we do, then Apple becomes the new Verizon. What’s the difference?

  7. WAIT A MINUTE: Peter Kafka is being Kafkaesque!

    Literally.

    Does Peter think for a split second, or a millisecond, that Google is going to allow Apple to check ad performance on the Google tablet that Google is getting ready to release.

    Lets get real!

  8. The crying begins…….. I think it’s funny how all of these companies expect Apple to bow down to them. When Apple doesn’t, they start running around crying foul. It’s Apple’s ecosystem, Apple’s way. You don’t have to like it ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

  9. There will always be some idiots like Jody. Look up monopoly and then look up what market share Apple has in the mobile industry. That’s right, that makes you an idiot!

  10. Offcourse Apple must do everything to keep hostile rivals from profiting from the iPhone.

    After they have been stealing Apple IP by ALL MEANS, including getting an effing mole bastard on to the Apple board… Are u kidding me?

    It is common sense what Jobs does.

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