Local Startup Reacts to Apple Removing Popular App

Late Friday, Apple removed a popular app from the Apple App Store, a move that's viewed as a scandal by some developers. Apple removed AppGratis, which had recently raised $13.5 million in funding and claims to have millions of daily active users. The site offered one free app a day.

Mahmoud Hafez, CEO of Palo Alto startup AppAdvice.com and Apps Gone Free is weighing in on the sentiment around the web that Apple unfairly removed AppGratis because Apple wants to be the only way to promote apps.

Hafez is a recent member of AOL’s incubator First Floor Labs.

“We have not heard about any specifics about AppGratis, but given the fact that their iPad app was just approved days ago means some new information must have come to light which caused Apple to respond with such vigor,” he stated in a press release. “I do not know if AppGratis was using illegal tactics to gain App Store chart position, or some other method, that has marred the app discovery industry, but I think Apple must have found something new over the past few days."

While AppGratis was removed, other apps that make recommendations remain.

Hafez stated that Apple doesn’t take removing apps lightly and that an October 2012 Apple clause is widely misunderstood online. Clause 2.25 states: “Apps that display Apps other than your own for purchase or promotion in a manner similar to or confusing with the App Store will be rejected.”

“It’s easy to bash Apple and paint them as control freaks, but I don't think this is a case of Big Brother trying to squash the little guy,” Hafez said in the release. “Many are citing the little understood clause Apple added to their developer agreement instead of looking deeper at AppGratis' business model.”

Hafez suspects that AppGratis’ model of promoting one free app a day allowed rich developers to simply pay the company to guarantee top placement on the App Store charts.

“This unique business model might have been troubling to Apple, as it operates outside of the framework Apple has set up, in which the App Store was meant to be a meritocracy,” he stated. “Clearly AppGratis’ proposal was good for developers with deep pockets (that) want exposure, but it was done with the developer in mind first, not the user.” 

Hafez said there are other reasons for this rationale:

1. There are many other apps that give app recommendations, including Onavo, which still remain in the App Store.

2. If Apple had cited this clause, it would apply to a single app. All of App Gratis’ apps were removed, even non-app discovery apps.

Hafez remains hopeful about app discovery apps such as his own.

“I do think app discovery apps which recommend apps based on some kind of journalistic merit and not a business relationship will continue to thrive,” he said. “Paid recommendations on the other hand are on the way out, and that should be a good thing.”

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