Apple locks Google out of its advertising plans

When Apple entered the advertising market, many wondered how it would compete against Google on its home turf.  The answer is simple, they won’t.  At AllthingsD conference Steve Jobs promised to open up its ad network to allow for third party ad networks and today, Apple has held that promise. 

The key here is that, yes, Apple did open up its platform to third party advertisers but the catch is that they must be independent third party advertisers.  According to allthingsd.com, Apple defines independent as: "for example, an advertising service provider owned by or affiliated with a developer or distributor of mobile devices, mobile operating systems or development environments other than Apple would not qualify as independent”.

This language clearly kills any chance of Google entering the iPhone advertising market by using Apples services and will also keep out Microsoft.  Apple is picking a tough fight with its former colleague; Google is quite powerful and by locking them out of the iPhones advertising, its hitting Google right in its proverbial heart.
 

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typical of apple to lock out any competition, guess this is another bad move on apple yet they claim they are innovative yet they lock out anything that could compete with them. steve jobs you need to get your head out of your a** and start being fair and allow competition as competition can lead to better products and lower prices.. oh wait apple don't want lower prices so they will sacrifice the better products scheme so they fail even more.

so basically they are also saying this "for example, an advertising service provider owned by or affiliated with Apple would qualify as independent" wonder how that works out

"for example, an advertising service provider owned by or affiliated with a developer or distributor of mobile devices, mobile operating systems or development environments other than Apple would not qualify as independent”.

Sounds like anti competitive practice

They can still advertise, they just can't collect statistical data on the device. FFS it doesn't really change anything other than stopping google getting in depth analytics on iPhone usage.

No fuss.. Google can just spin-off another company! and it need not be owned by Google they can just fund it and provide the technology.

DaKeiko said,
No fuss.. Google can just spin-off another company! and it need not be owned by Google they can just fund it and provide the technology.

Guess you missed the part where it says "owned by or affiliated with" in the wording. You're idea doesn't work.

One of the reasons why I'm thinking of not upgrading an iPhone4 (I have a 3g) is because I want to be the person who decides what gets put on my phone and how I use the phone and not Apple.

Can a developer decide to put Google ads into their own app and bypass the iad? Or is it flat out: no friggen ads in no friggen AppStore apps except for iAds?

I'd like to know how many people here actually understand the situation.

Google can still advertise on iOS through iAds if they want to. They just can't link AdMob to iAds.

Hell, Google doesn't let advertisers "advertise competitive content" through third-party ad networks on AdSense.

It would be great to see Google block Apple from their search engine, although I realize this would never happen. I wonder what type of effect it would have on an internet/technology related company if they were blocked by google. I think that it would have a noticeable negative impact, even with companies as large as Microsoft or Apple.

Stepping on toes that shouldn't be stepped on. Steve is going to **** of the whole industry and get what's coming to his silly company soon enough.

Big deal. Worst case scenario, Google pulls out of developing their products for Apple like the upcoming free navigation software for the iPhone. So who is really hurting in the end? Apple will be happy, Google will be happy but the users are missing great apps.

I love how Apple approaches things. Even the description says "...other than Apple"... Though I really don't care if Google is locked out, I think that it's only a matter of time before Apple gets into some anti-trust / anti-competition problems...

Apple is locking Google out of advertising on the iPhone. They are just not letting advertising companies on iAds and get analytics through it. If apps use AdMob then Google can get the analytics they need. But just not through iAds. That's how I understand it. If I'm wrong then I'm wrong. But everyone waiting for a DoJ case will be disappointed.

asdavis10 said,
Apple is locking Google out of advertising on the iPhone. They are just not letting advertising companies on iAds and get analytics through it. If apps use AdMob then Google can get the analytics they need. But just not through iAds. That's how I understand it. If I'm wrong then I'm wrong. But everyone waiting for a DoJ case will be disappointed.

You ARE wrong. This is the provision about how analytical data is handled; it is a part of the dev SDK agreement. It is not specific to iAds. In fact, I'm sure it wouldn't be a problem for Google to use iAd -- Apple needs to provide good analytics but not so good as they will be concerned about strategic advantages gained from it. However, you are right in that this is likely not a problem; it is a well justified business decision.

haha this is totally going to get good.... I hope google doesn't just be the bigger man. they should redirect all apple searches to come out empty.

There's a surprise, Apple creates an open ad platform that isn't, you know, open. What next, Sony TVs will prohibit playback of ads for products of competing manufacturers?

thommcg said,
There's a surprise, Apple creates an open ad platform that isn't, you know, open. What next, Sony TVs will prohibit playback of ads for products of competing manufacturers?

That wouldn't surprise me, it is sony afterall.

Apple really know how to anger people at the minute!

I wouldn't think that angering google would do them any good!

Minimoose said,

Stealing a thief's possessions is still stealing.

Unless what you take from the thief is what he already stole from you in the first place, then it's not.

Off topic but hey.

Julius Caro said,
Here cometh the antitrust lawsuits!

My thoughts exactly....Locking players out of the business with anti competitive policy's.
Where the DOJ lawyers ? If you can go after MS Surely Apples iTunes lockout and now the iAds lockout must also come into question.

Julius Caro said,
Here cometh the antitrust lawsuits!

for what? Apple is not the dominate player in mobile phones. Apple controls their platform and can decide what software goes on it. Just like Microsoft controls the XBox development platform. And Sony the PS3 and PSP. Nintendo the Wii and Gameboy.

evo_spook said,
I don't think theres much to see here, I doubt Google would allow Apple the same on its adroid advertising system.

Then you would be sorely mistaken... Android is open source, meaning Google has no control over what OEM's / developers do with the Operating System or Applications installed on it.

vaximily said,

Then you would be sorely mistaken... Android is open source, meaning Google has no control over what OEM's / developers do with the Operating System or Applications installed on it.


+1... flawless victory

TechGuyPA said,
Anyone else think that Microsoft is just sitting back and smiling watching Google/Apple fight.

I know it's making me laugh. Apple is so used to only fighting Microsoft and now that theres another contender they can't handle it.

randomevent said,

I know it's making me laugh. Apple is so used to only fighting Microsoft and now that theres another contender they can't handle it.

It could be argued that they're handling it very well. They've bitten a huge chunk out of Windows Mobile devices with the iPhone, and now they could put a (small) dent into Google's and Microsoft's pockets by locking them out of their ad platform.

TechGuyPA said,
Anyone else think that Microsoft is just sitting back and smiling watching Google/Apple fight.

Yeah, they are loving their complete irrelevance.

dp123 said,

Yeah, they are loving their complete irrelevance.

Because the company with the largest OS marketshare is irrelevant amirite guys?

The standard of education seems to have really dropped.

I wouldn't think this would warrant a doj inqury... They aren't locking out anyone specific and that doesn't prevent google from advertising their specific products.

TOOLaudiofan said,
I wouldn't think this would warrant a doj inqury... They aren't locking out anyone specific and that doesn't prevent google from advertising their specific products.

Maybe. But Apple is offering their own competing service on the device and locking out competitors. I can see how it would be fine, but I can also see how it could be interpreted as being anti-competitive.

Stetson said,
Maybe. But Apple is offering their own competing service on the device and locking out competitors. I can see how it would be fine, but I can also see how it could be interpreted as being anti-competitive.

Are you familiar with their appstore, the one and only appstore unless your device is jailbroken?

Towlie505 said,

Are you familiar with their appstore, the one and only appstore unless your device is jailbroken?

You've taken that completely out of context and it holds absolutely no value in this matter.

Towlie505 said,

Are you familiar with their appstore, the one and only appstore unless your device is jailbroken?

I know, but to me controlling which native code gets executed on your platform is different than choosing which companies can provide competing ad services to developers.

Also, the app store doesn't discriminate based on the company building the app. Imagine if Apple said that you couldn't develop apps for the app store if you were "owned by or affiliated with a developer or distributor of mobile devices, mobile operating systems or development environments other than Apple."

That would be very different than what they do today.

TOOLaudiofan said,
I wouldn't think this would warrant a doj inqury... They aren't locking out anyone specific and that doesn't prevent google from advertising their specific products.

I think the key here is to whether or not Apple will push adverts on their own system. I think its that particular issue that could make this a problematic situation, and lead to (yet more) cries of double standards.

Stetson said,

I know, but to me controlling which native code gets executed on your platform is different than choosing which companies can provide competing ad services to developers.

Also, the app store doesn't discriminate based on the company building the app. Imagine if Apple said that you couldn't develop apps for the app store if you were "owned by or affiliated with a developer or distributor of mobile devices, mobile operating systems or development environments other than Apple."

That would be very different than what they do today.

You completely misunderstood what I meant. I meant notice how the only place to buy apps is from their appstore as an example of Apple being anti-competitive. They don't allow any other competitive ways of buying or downloading apps. It's not a surprise that they would be anti-competitive with advertising as well.

Stetson said,

I know, but to me controlling which native code gets executed on your platform is different than choosing which companies can provide competing ad services to developers.

Also, the app store doesn't discriminate based on the company building the app. Imagine if Apple said that you couldn't develop apps for the app store if you were "owned by or affiliated with a developer or distributor of mobile devices, mobile operating systems or development environments other than Apple."

That would be very different than what they do today.

Building apps is very different than ads. I think it will be very easy for Apple to defend this on pro-competitive concerns. Implying that Google has a "right" to advertise on the iOS implies that they have a right to strategic information regarding Apple, Apple's devices, and Apple's users -- because that's what advertising is: market information, business information. Competitors don't have a right to that. Apple will allow a third party ecosystem of advertisers but they aren't going to turn over strategic information about their users, their habits, their devices to their greatest competitor.

To expand on my point: the analogy would be more like saying that any competitor has the right to access any and all error reports, crash logs, sys dumps, etc... a company produces for its own use and maybe shares with key developers as it relates to their products. No one would expect such a thing.

Edited by dp123, Jun 8 2010, 10:36pm :

Towlie505 said,

You completely misunderstood what I meant. I meant notice how the only place to buy apps is from their appstore as an example of Apple being anti-competitive. They don't allow any other competitive ways of buying or downloading apps. It's not a surprise that they would be anti-competitive with advertising as well.

No, I understood completely. If Apple said that anyone could put their own app store on the iPhone, except for companies that offer competing phones and OSes, it would also be a problem.

Your example would be like Apple proclaiming that there would be no in-app advertisements on the iPhone except for iAds. That isn't what they are doing. They are allowing third-party advertisers but discriminating against Google, Microsoft, etc.

Stetson said,
Your example would be like Apple proclaiming that there would be no in-app advertisements on the iPhone except for iAds. That isn't what they are doing. They are allowing third-party advertisers but discriminating against Google, Microsoft, etc.
Third party ad network frameworks can still be used by developers in iOS as well. The only difference in all of this is that Apple is disallowing large, competing third-party ad networks from piggybacking themselves on to the iAd network.

Elliott said,
Third party ad network frameworks can still be used by developers in iOS as well. The only difference in all of this is that Apple is disallowing large, competing third-party ad networks from piggybacking themselves on to the iAd network.

Like I said, they are allowing some third party frameworks, which is different from the App Store where they allow no third parties.

Competing ad networks don't piggyback on the iAd network, any third party app frameworks will be completely separate from iAds, just like the ads that are already in many iPhone apps today.

Frylock86 said,

Aren't they alreadyu being investigated?

Yes they are. Steve Jobs must be off his rocker. DOJ is gonna kidney punch him so hard.

Frylock86 said,

Aren't they alreadyu being investigated?

Yep. No charges filed but they are looking at the developer agreement and some other odds and ends.