How Apple's new App Store rules affect Meta, developers, NFTs
What can you do when Apple flexes its big, App Store-shaped muscles? Just sit in silence and watch Apple do whatever it wants. That's all anyone can do as the Cupertino-based tech giant introduced a new set of rules to tighten its grip on the App Store. Apple takes what it sees. It saw some new moneymaking opportunities and took them.
Why does this story matter?
When you command one of the two biggest marketplaces for apps, people will tolerate you no matter what you do. Apple knows this. Its total control over the iOS ecosystem makes it almost unassailable. This knowledge is reflected in the new App Store rule changes. Despite the criticism it has received in the past, the company is unfazed because it knows its worth.
Ads are shown in 'Today' tab, 'You Might Also Like'
The new App Store rules take Apple's control over ads to another level. The company will now be able to show ads in more places in the Store. The new spots to advertise include the main 'Today' tab and the 'You Might Also Like' listing under individual apps. App Store ads were previously limited to search results and the 'Suggested' section.
Developers may have to buys ads on their app pages
With ads now being present in 'You Might also Like,' developers might be forced to buy ads in their own app pages to stop users from going elsewhere. There are also issues of poorly matched ads appearing. Apple had to remove gambling ads that appeared on the page of apps that help fight gambling addiction. The company has paused certain ads due to this.
Apple will take a 30% cut from in-app purchases
Another change brought by Apple is related to buying in-app ads from the app itself. The new rule makes it mandatory to use Apple's in-app purchasing system while buying such an ad. Also, Apple takes a 30% cut from that. For instance, now when you buy a page or post boost from Facebook or Instagram, the payment will directly go through Apple.
Meta is not happy with Apple's new rule
The change in policy related to in-app purchases by Apple is considered by many as a direct shot at Meta. The latter is already reeling under the pain of Apple's recent privacy changes, which affected its ad business. About the new rule, Meta said, "Apple continues to evolve its policies to grow their own business while undercutting others in the digital economy."
App Store purchase system is required to buy NFTs
Apple has made using the App Store purchase system mandatory for NFTs. If an app sells NFTs, the purchase will go through Apple from now on. As expected, the company will take a cut from this as well. Since the demand for NFTs has taken a nosedive in 2022, this change may not be as problematic as others.
