>Applications still require payments in form of contact lists
What? It seems like you were trying to make a coherent argument but a list of contacts is in no way comparable to a paid subscription. Microsoft doesn't allow you to buy O365 with your contacts, do they?
No, but some apps require this to unlock functionality. I consider it a form of payment, just like apps sucking up data from one's phone being a form of non-financial payment for an app disguised as "free".
I would report such apps. It is firmly in the App Store guidelines that optional permissions (such as permission to track, geolocation, sharing contact lists) cannot result in a program without functionality or in a penalty for users.
What? It seems like you were trying to make a coherent argument but a list of contacts is in no way comparable to a paid subscription. Microsoft doesn't allow you to buy O365 with your contacts, do they?