Tuesday, July 26, 2011

Consumers lose as Apple and Amazon battle over ebook sales (Yahoo! News)

Barnes & Noble, Kobo, and Google Books apps also affected by Apple in-app purchasing rules

After several months of public back and forth, Amazon has capitulated to the Apple rulebook: as of this morning, the online retailer has updated its iPhone, iPad, and iPod touch apps to remove all links to its online digital book store. Other ebook retailers including Barnes & Noble and Kobo have followed suit, in order to comply with some newly-enforced fine print in Apple's app developer guidelines.

It all started back in February, when?Apple began enforcing an obscure clause in its developer terms requiring any apps that offer customers the chance to purchase items outside of an iPhone or iPad app to also offer that ability?inside the app as well. This was essentially a thinly-veiled move to start enjoying the company's customary 30% cut from in-app transactions ? something high-volume ebook retailers like Amazon would surely want to avoid.

Stepping up its efforts a few days later, Apple?issued a March 31 deadline for in-app transactions being made available within apps that allow users to consume content purchased from outside sources. Although that deadline came and went, it appears that Apple didn't back down from its position. As of today, online book-sellers Amazon, Barnes & Noble, and Kobo have all changed their respective iOS apps: instead of launching in-app ebook stores, however, all three have simply removed any links to their outside storefronts from within their iPhone and iPad apps.

In other words, in lieu of giving Apple its 30% pound of flesh, all three retailers have opted to completely remove any evidence that customers can purchase content elsewhere. In a?statement on their official Kindle forum, Amazon staff announced that "In order to comply with recent policy changes by Apple, we've also removed the 'Kindle Store' link from within the app that opened Safari and took you to the Kindle Store. You can still shop as you always have ? just open Safari and go to?www.amazon.com/kindlestore. If you want, you can bookmark that URL. Your Kindle books will be delivered automatically to your iPad, iPhone or iPod touch, just as before."

A workaround is now required to make certain ebook purchases

Kobo has removed The Store from its app, and Barnes & Noble have updated their Nook Kids app with the main app sure to follow suit shortly. Meanwhile, the Google Books app has been completely removed from the Apple App Store, as evidenced by the screenshot above. The whole incident of industry drama is a stark reminder of the kind of hardball that companies can and do play to gain advantage in emerging markets. In this case, the digital book industry reveals itself as fertile ground for staking territorial claims; unfortunately, the consumer gets the short end of the deal as heavyweights like Apple and Amazon play their?game of thrones.

Amazon via?Cnet

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Source: http://us.rd.yahoo.com/dailynews/rss/personaltech/*http%3A//news.yahoo.com/s/yblog_technews/20110725/tc_yblog_technews/consumers-lose-as-apple-and-amazon-battle-over-ebook-sales

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