Apple’s Updated App Store Policies Allow US Developers to Link to Outside Payments
Apple has made updates to its App Store policies, allowing US developers to link to outside payment platforms. However, developers will still be required to pay Apple a commission, with a reduced rate of 27 percent or 12 percent for those part of the App Store Small Business Program. These new rules, outlined in Section 3.1.1(a) of the App Store Review Guidelines, also require developers to apply for an “entitlement” to enable alternative payment methods and include Apple’s in-app purchase system in their apps. The changes come after the Supreme Court’s decision not to hear Apple and Epic’s appeals, prompting Tim Sweeney, Epic’s CEO, to criticize Apple’s policies and announce plans to contest them in District Court.
App Store Policies Update
Apple’s App Store policies now allow US developers to link to outside payments
Apple has recently updated its App Store policies to allow US developers to link to outside payment platforms, according to a report by 9to5Mac. This means that developers now have the option to use alternative payment methods for their apps. However, it’s important to note that even if developers choose to use an outside payment platform, they will still owe Apple a cut. Apple will take a 27 percent cut (as opposed to the standard 30 percent) or 12 percent for developers enrolled in the App Store Small Business Program. The new policies aim to provide developers with more flexibility while still ensuring Apple’s continued commission on sales.
Outside Payments and Apple’s Cut
Developers will still owe Apple a cut if they use an outside payment platform
Apple will take a 27 percent cut or 12 percent for developers in the App Store Small Business Program
Under the new policies, if developers choose to use an outside payment platform, they will still be required to pay a percentage of their sales to Apple. Apple will take a 27 percent cut from developers who use an outside payment platform, which is slightly lower than the standard 30 percent cut. However, developers who are part of the App Store Small Business Program will only have to pay a 12 percent commission. This program is aimed at supporting small businesses and developers by reducing the commission rate.
New Rules for Linking to Alternative Payment Methods
Section 3.1.1(a) of the App Store Review Guidelines outlines the new rules
Developers must apply for an ‘entitlement’ to enable alternative payment methods
Developers must also offer Apple’s in-app purchase system in their apps
To ensure that developers comply with the new policies, Apple has outlined specific rules in the App Store Review Guidelines. Section 3.1.1(a) of the guidelines provides detailed instructions for developers who want to link to alternative payment methods. Developers must first apply for an “entitlement” to enable these payment methods. This suggests that Apple will carefully review and approve each request to ensure compliance with their guidelines.
Additionally, developers are required to offer Apple’s in-app purchase system in their apps alongside the alternative payment methods. This ensures that users have the option to make purchases through both the external payment platform and Apple’s own system, providing them with a seamless and convenient experience.
Supreme Court Decision
The Supreme Court’s decision not to hear Apple and Epic’s appeals
The decision requires Apple to discontinue its anti-steering rules
In a separate but related development, the Supreme Court recently decided not to hear Apple and Epic’s appeals in the Epic Games v. Apple case. This decision has significant implications for Apple’s App Store policies. One of the outcomes of this decision is that Apple is required to discontinue its anti-steering rules.
Anti-steering rules were policies implemented by Apple that prevented developers from directing users to external payment platforms. The Supreme Court’s decision challenges these rules, allowing developers more freedom to link to outside payment methods and reducing Apple’s control over in-app purchases.
Tim Sweeney’s Criticism
Tim Sweeney, Epic’s founder, and CEO, criticizes Apple’s updates to its policies
Sweeney calls the 27 percent fee ‘anticompetitive’
Sweeney criticizes Apple’s rules for the appearance and functionality of the payment links
Sweeney highlights the ‘scare screen’ users will see when leaving an app
Tim Sweeney, the founder and CEO of Epic Games, has voiced his criticism of Apple’s updated policies. Sweeney argues that the 27 percent fee charged by Apple is anticompetitive and further hinders price competition in the market. He believes that this fee prevents developers from offering digital items at a lower cost on external platforms.
Sweeney also expressed concerns about Apple’s rules regarding the appearance and functionality of the payment links. He believes that these rules restrict developers’ creative freedom and limit the user experience. Additionally, Sweeney highlighted the “scare screen” that users will encounter when they leave an app to visit an external payment site. This screen could potentially discourage users from completing their purchases and negatively impact developers’ revenue.
Epic’s Response
Epic plans to contest Apple’s compliance plan in District Court
In response to Apple’s updated policies, Epic Games has announced its plans to contest Apple’s compliance plan in District Court. Epic Games has been engaged in a legal battle with Apple over various App Store policies, including the commission rates and anti-steering rules. Epic Games’ decision to challenge Apple’s compliance plan indicates their continued commitment to advocating for changes in Apple’s App Store policies.
Glaring Problems
Sweeney points out glaring problems with Apple’s update, including the new 27% tax on web purchases
The tax kills price competition and prevents developers from offering digital items more cheaply on the web
Tim Sweeney has also highlighted some glaring problems with Apple’s latest update. One of the significant issues he raises concerns the introduction of a new 27 percent tax on web purchases. According to Sweeney, this tax is unprecedented and anticompetitive. It diminishes price competition in the market and prevents developers from offering their digital items at lower prices through external platforms.
Sweeney’s argument suggests that the new policies do not create a level playing field for developers and hinder their ability to offer competitive pricing alternatives outside of Apple’s App Store.
Conclusion
The updates to Apple’s App Store policies have implications for US developers
The allowance to link to outside payments comes with Apple’s continued commission on sales
Developers must adhere to new rules when linking to alternative payment methods
Tim Sweeney and Epic Games are not satisfied with Apple’s updates and plan to contest them in court
The recent updates to Apple’s App Store policies have significant implications for developers in the US. While the new policies now allow developers to link to outside payment platforms, it’s important to note that Apple will still charge a commission on sales made through these platforms. The commission rate is set at 27 percent for most developers and 12 percent for those eligible for the App Store Small Business Program.
To ensure compliance, developers must adhere to the new rules outlined in the App Store Review Guidelines. This includes applying for an entitlement to enable alternative payment methods and offering Apple’s in-app purchase system alongside external platforms.
Despite these changes, Tim Sweeney and Epic Games remain dissatisfied with Apple’s updates. They believe that the new policies present several issues, including the introduction of a 27 percent tax on web purchases that curtails price competition. Epic Games plans to contest Apple’s compliance plan in District Court, indicating their commitment to pushing for further changes in Apple’s App Store policies.