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. Besides I would much prefer Apple having my sensitive private data, than the street whore Gooogle, that will sell my data to the highest bidder.

    All you Lemming Goggle fans think that because Google gives you something for free, they are your friend!

  2. Why would Apple want to enable its competitors to take away its competitive advantage? What are you, a dumbass?

    Apple should put all possible roadblocks in front of its competitors, cripple them, shut them out, isolate them, destroy them.

    Only left leaning libs, who never grew up and live in a fairyland, think that Apple should give away its crown jewels. Adobe wants to gain control, Apple want to keep control. Its a nasty battle. But tough shit, week kneed libs.

  3. @ SouthRoad –

    Technically, you do not “own” outright the operating systems on your phone or computer – like most software, you are “licensing” it – you pay for the privilege of using it, and by doing so, usually have to agree to certain terms. If Apple offers you an operating system that doesn’t allow something that you want, it is your choice not to agree to the terms, and not use the software. If you want to run flash on your phone, go ahead and write the software yourself to do so, or use software that has a license which enables/allows that. You are speaking as if all technology is “open source”, when in fact, it isn’t. You do not have any “rights” or choices in this case, other than to chose not to use the technology and instead use something else that conforms more to your needs/desires/etc.

  4. Southroad,

    No-one put a gun to your head to force you to purchase an Apple product. You chose to buy [insert Apple product here] of your own free will.

    In its EULA, which you chose to abide by when you clicked ‘agree’, Apple specifically stipulates that it retains total ownership of your Apple products’ OS and that they [Apple] may modify it at any time as it deems necessary, hence the Apple ‘Software Updater’.

    Apple continues to retain the right to access / deny the rights to which 3rd partys may have access to their products; i.e., Apple has the right to say who may or may not play in thier sandbox.

    If you don’t like it, go buy some other mediocre piece of sh*t. Just stop whining.

  5. This looks more like a privacy issue to me. Looking at the text of the agreement, it’s forcing companies to adhere to strict customer privacy guidelines. This probably has more to do with international laws — I think Germany has some draconian uber-privacy laws on the books now that make it illegal for websites to maintain any data (including I think Geolocation) from anonymous customers. Apple probably wants to make sure these international laws don’t cause legal problems or (worse) restrict future iPhone sales.

  6. @ Southroad

    What dp and fandango said… was well said.

    I’m reminded of…

    “Better to keep ones mouth shut and be thought a fool, than to open it and remove all doubt”.

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  7. Damn straight – “He’d better be!”.

    Apple is where it is today only because it stands head and shoulder above the rest and is unique in every respect as a business that actually gets it and cares. IT should exclude all other competitors.

    Since when do you turn an unprotected back to a knife wielding enemy?

  8. This would also explain the harsh sdk rules making developers use Xcode to complie all of the code. Could you imagine the mess when they stop virtualizing the arm core and every game written by the adobe platform breaks because it’s assuming and optimized for arm?
    Kdos to Apple.
    Written on my iPhone from MDN app.

  9. The Human Body is a closed system
    Cancer is an open system.
    Apple are trying to keep “cancer” out of the user experience. Pick it up, turn it on, it works – the way you expect it to.

  10. Personally I’m not looking forward to the days of Apple’s own ad network – currently I can block pesky flash adverts, what happens when Apple delivers ads in H264 that I can’t do anything about? Or when they start to try to monetize the information they have stored from my iTunes purchases or my GPS data? I can’t see that ads from Apple will be any less annoying or odious than ads from anyone else. I don’t want my data connection sucking down adverts every time I use an application. And how long will it be before all applications take advantage of the ability to embed adverts as developers compete for revenue in a pond that has become much
    more crowded?

    I don’t see why anyone should be cheering Apple as the new overlord of advertising …

  11. Apple is courting antitrust action from the USDOJ with this move, especially with the Obama Administration in charge.

    Maybe Apple’s strategy is to push the limits until the DOJ pushes back. After that, I trust that Apple would not make the same mistake that Microsoft made – violating the terms of the settlement.

  12. @SouthRoad

    yes, you own your iWhatever; you bought it and it’s yours. But you don’t own the software. The software doesn’t let you do everything you want to? Then don’t buy the iWhatever and the software license that goes with it. Look up license in a dictionary. If you want to do whatever you like with software, you will have to write your own, or buy some off some developer who is willing to sell you all the rights. It will cost a bit more than than the iWhatever software though.

    Put another way, Apple can’t stop you using the iWhatever for whatever you like to use it for. You can use it to hammer in nails, hang it on the wall and throw eggs at it, paint a nasty face on it to frighten small children, anything. It’s yours.

  13. @SouthRoad

    Don’t you just hate the fact that you can only get a BMW engine in a BMW. I mean where is the fairness. Why can’t I get BMW to provide me with their car with a chevy engine with a BMW warranty. It’s not right, their should be an investigation.

    BMW has no right to have such a closed system. No one will drive BMW’s if they don’t change.
    If they are not more open and accommodating I will pout and stamp my foot. That will show them.

    On another note, please load flash onto your iPhone! While you are at it, add windows mobile and android as well.

  14. @SouthRoad

    “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.”

    Psst! I’ll help you share! What are those numbers, along with your correct full name, address and DOB!

  15. @Jody

    “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!”

    Actually, you are in luck. I hear that the governmental authority of Antarctica is interested in these issues.
    It would be a good time for you to fly down and present your cogent arguments. I bet some of the Penguins would support you. You would be doing a great service to mankind. This could save the globe from computers and mobile devices that are well designed, have lots of good apps, and work.
    Now that would be awesome!

  16. @x

    Only t-party know nothing, red necked dumber than a door nob right wingers, who never grew up and are part of an anti government Bush sucking militia, think that Apple should give away its crown jewels.

  17. @An Optimist

    “Apple is courting antitrust action from the USDOJ with this move, especially with the Obama Administration in charge.

    Maybe Apple’s strategy is to push the limits until the DOJ pushes back. After that, I trust that Apple would not make the same mistake that Microsoft made – violating the terms of the settlement.”

    If you believe any of what you wrote above you are totally clueless!

  18. Because of Google’s anti-competitive tactics of slaughtering the competition by offering free trinkets to lemmings in order to protect their ads business, this has forced the hands of Apple to circumvent the embargo.

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