The New York Times has reported that Apple may be tipping the scales of search results in the App Store in favor of the company’s own apps. Jack Nicas and Keith Collins report:
Top spots in App Store search results are some of the most fought over real estate in the online economy. The store generated more than $50 billion in sales last year, and the company said two-thirds of app downloads started with a search.
But as Apple has become one of the largest competitors on a platform that it controls, suspicions that the company has been tipping the scales in its own favor are at the heart of antitrust complaints in the United States, Europe and Russia.
Apple’s apps have ranked first recently for at least 700 search terms in the store, according to a New York Times analysis of six years of search results compiled by Sensor Tower, an app analytics firm. Some searches produced as many as 14 Apple apps before showing results from rivals, the analysis showed. (Though competitors could pay Apple to place ads above the Apple results.)
Presented with the results of the analysis, two senior Apple executives acknowledged in a recent interview that, for more than a year, the top results of many common searches in the iPhone App Store were packed with the company’s own apps. That was the case even when the Apple apps were less relevant and less popular than ones from its competitors. The executives said the company had since adjusted the algorithm so that fewer of its own apps appeared at the top of search results.
The Times’s analysis of App Store data — which included rankings of more than 1,800 specific apps across 13 keywords since 2013 — illustrated the influence as well as the opacity of the algorithms that underpin tech companies’ platforms.
Those algorithms can help decide which apps are installed, which articles are read and which products are bought. But Apple and other tech giants like Facebook and Google will not explain in detail how such algorithms work — even when they blame the algorithm for problems.
Read more here.
Jeremy Jones, CFA
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