iPhone maker accused of inconsistent apps approvals
By Kim Tong-hyung
Staff reporter
Korean Internet companies are voicing increasing anger at what they say has been Apple's slowness and inconsistency in approving applications for iPhones.
The Korea Internet Corporations Association (Kinternet), an industry lobby that represents 150 Internet firms including NHN, Daum and Google Korea, said its member companies are considering collective action against the U.S. technology giant's ``unfair'' business policies.
Controversy erupted last month when Apple discarded a number of applications from Korean music streaming sites including ``Bugs Music,'' ``Soribada'' and ``Mnet'' from its App Store content platform.
Apple offered no explanation on why the previously-approved applications were pulled, although industry watchers say it may be an indication of the company's changing business strategies for music content here.
``We are currently investigating the damage suffered by our member companies from Apple's unfair and inconsistent policies, as shown by the controversial cases of recent. The results of our investigation will be used in deciding the direction and level of our collective response to Apple and reinforce a healthy market environment,'' said Heo Jin-ho, the president of Kinternet.
``For businesses, having predictability is crucial. Right now, we really have no idea of which tune we are dancing too, and this can only lead to disruptions in services. Eventually, if this inconsistency maintains, both developers and mobile users will avoid this market.''
Apple Korea provided no official comment.
The immense popularity of the iPhone, Apple's do-it-all smartphone, of which nearly 800,000 have been sold since its late November debut, has been giving Internet companies here a fresh business jolt by opening up a whole new market for mobile content.
However, the Internet companies also find Apple an unreliable and capricious business partner, as they moan about the ever-changing rules and frequently-yanked applications.
According to an official at Neowiz, which created the ousted Bugs Music application, Apple never provides detailed information on how its judges applications for App Store approval. The explanations are vague when applications are rejected, he said, and not much reason is given when previously-approved content are cut.
While being quick to pull the plug on Bugs Music, Apple doesn't appear to have a problem with similar music applications in other countries, such as Spotify, the hugely popular British music streaming site.
Apple apparently told Neowiz that Bugs Music was yanked because of its payment method that allowed users to tag the costs to their monthly mobile-phone bills. Neowiz has since tweaked the program and reapplied it for App Store registration, but has yet to gain approval after nearly a month.
Industry watchers wonder whether Apple is keeping the Korean music applications at bay as it looks to flex its muscles in the music business here through iTunes, the content platform from which App Store is operated.
Korean iPhone users had been able to access only a fraction of the vast iTunes content pool, but Apple now appears to be opening up the pipelines, recently making a larger wealth of television and radio content available.
The success level of the iTunes platform here will hang on Apple's ability to secure commitments from local music labels and other major copyright holders. This would mean that iTunes would have to directly compete with services like Bugs Music.
``The opening of iTunes in the Korean market will provide new opportunities for Korean copyright holders, and Apple would prefer negotiating directly with them,'' said Kim Chang-gwon, an analyst from Daewoo Securities.
``This also means that music sites like Bugs Music and Melon will be seeing a frightening new competitor in the music distribution business.''
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