ARCHIVES: This is legacy content from before Marketing Dive acquired Mobile Marketer in early 2017. Some information, such as publication dates, may not have migrated over. Check out the new Marketing Dive site for the latest marketing news.

Apple beginning to view Google as competition?

Apple removed Google Voice from the App Store today since Google is now one of its direct competitors.

Mobile industry members argue that consumers should get access to the best possible content regardless of who makes it and it now seems as though Apple is building its very own walled garden. But Apple is now viewing Google as competition and if this continues the competitive landscape may drastically change, especially with the Yahoo /Microsoft deal.

"The more important picture though is what this means for consumers long term," said Patrick Mork, vice president of marketing at GetJar, London. "Consumers at the end of the day will be looking for and should have access to the best possible content no matter who makes it.

"If Opera or Bolt offer a better browsing experience then Safari consumers should have access to them," he said. "If Spotify offers a better music alternative to iTunes then it should be available.

"Sadly, this is not likely to be the case on the iPhone and this has been proven repeatedly over the past few months."

Apple reportedly turned away the Google Voice application because it repeats key iPhone functions.

Google Voice allocates a phone number to a mobile phone, landline or Internet phone account.

In addition to refusing to put Google Voice into the App store, Apple has also pulled all third-party applications that use Google Voice.

The application allows consumers to make inexpensive phone calls over-sees and nationwide.

Industry spectators are guessing that AT&T had something to do with Apple's rejection of Google Voice.
The wireless carrier has an exclusive agreement with Apple to provide service to iPhone users.

In a similar situation, Apple lets voice over Internet service provider Skype work at WiFi hotspots but not over AT&T's connections.

Google Voice does use airtime minutes, but letting users make cheap calls from their iPhones could definitely take a cut from AT&T's profits.

Right now especially, consumers are doing whatever it takes to manage their costs.

"Although frustrating for Google and consumers, this is a simply a reality of working within the App Store world," Mr. Mork said. "Developers may ask themselves whether they prefer a Closed App store or an Open one.

"The reality will be -- and already is if you look at smart developers like ebuddy, EA, Google and Nimbuzz -- that successful developers will have to develop cross platform and consider multiple distribution channels to reach consumers.

"Through all the hype developers are starting to realize two things: first, not everyone will make a fortune on the iPhone," he said. "With over 65,000 apps and no in-store merchandising tools developers will struggle to get through.

"Two, closed gardens have their drawbacks," he said. "In Apple's case these seem to be unclear editorial guidelines on what gets on and what doesn't and applications that may be significantly better then Apple's own software may not make it due to conflict of interest with Apple."

"One thing remains certain: given today's environment consumers aren't likely to find the best Apps just on the iPhone. That's bad news for iPhone users but good news for the 99 percent of the world who might reap the benefits of frustrated but highly innovative developers."