Shulou(Shulou.com)11/24 Report--

According to people familiar with the matter, the Application Association (ACT), an industry organization that represents app developers, claims to be the main spokesman for global app developers, but in fact, Apple is the biggest backer of the organization.

Four former ACT employees said that although Apple is not a member of the association, the tech giant plays a leading role behind the scenes, influencing the organization's policy stance. Critics point out that most of ACT's lobbying agenda is closely related to Apple.

ACT argues that the group does not benefit from Apple, but admits that half of its money does come from Apple. However, the actual proportion is much higher, according to the former employees.

The relationship between Apple and ACT suggests that big companies are quietly pouring money into outside groups promoting their agenda in Washington. Representatives of ACT regularly testify before Congress and submit court briefs to defend Apple's position.

Rick VanMeter, a former congressional aide and head of the Application Fairness Alliance (Coalition For App Fairness), said ACT's claim to be an "app developer representative" was actually a lie, given its close relationship with Apple.

Apple declined to comment, but ACT executives defended its role. "our job is to ensure that attention is paid to the impact that the government may have on all small businesses that develop cool software products, intentionally or unwittingly," said Morgan Reed, chairman of ACT.

Mr. Reid and other ACT executives say they determine policy positions based on members' preferences and will not follow Apple's instructions, although they will consider Apple's position. According to the latest figures in the disclosure documents, ACT received more than $9 million in donations in 2020, of which Apple may have provided millions.

Apple is an important force in the app industry, and its app store is the equivalent of a virtual market that is profitable for both developers and Apple. Apple takes 15% to 30% of the revenue from these apps, which can reach billions of dollars a year.

But many app developers object to Apple's high commissions and restrictions. The antitrust legislation being pushed by Congress would require Apple to loosen its grip on the app store and allow developers to bypass its payment system. But ACT opposes the bill, arguing that it will threaten the privacy and security of app stores, in line with Apple's attitude.

ACT says on its website that it represents 5000 developers and equipment companies around the world. In addition to Apple, other corporate sponsors listed on its website include Verisign, AT&T, Intel and Verizon.

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