App Store sales grew 34.7%
Apple (AAPL) has had its fight with the cryptocurrency world for some time, and it seems to be escalating. After earlier banning third-party apps for sending and receiving cryptocurrency from its app distribution center, Apple has now moved to ban apps that mine cryptocurrency on its devices, according to The Verge, citing updated App Store guidelines.
The App Store is the brand name of Apple’s app distribution center. It’s the world’s largest app distribution center by revenue, according to Sensor Tower. App Store sales rose 34.7% to $38.5 billion last year. Google’s (GOOGL) Google Play store made $20.1 billion in app sales last year.
Keeping App Store out of controversies
App Store is an important component of Apple’s closely watched services division, where sales rose 31% year-over-year to $9.2 billion in the first quarter, which is Apple’s fiscal Q2 2018. Apple’s move to ban on-device cryptocurrency mining apps from the App Store may be aimed at keeping its app distribution business out of controversies that could dent its reputation and hurt its business prospects. Apple competes with Google and Microsoft (MSFT) in the app distribution business.
Internet companies banning cryptocurrency ads
Apple is not the only mainstream technology company having problems with the cryptocurrency world. Citing a need for stronger consumer protection online, Facebook (FB), Google, and Twitter (TWTR) earlier this year decided to restrict advertising of cryptocurrency-related products on their platforms. Chinese Internet giants Baidu (BIDU), Alibaba (BABA), and Tencent (TCEHY) don’t allow cryptocurrency ads.