Apple loosens grip on in-app purchases, allows external payment links
What's the story
Apple has updated its App Store policies, giving US developers the option to link to external payment platforms. This facility is only for those apps that also offer purchases through Apple's own in-app purchase system. Developers will still owe Apple a commision if they use an outside payment platform. This decision follows the Supreme Court's refusal to hear appeals from Apple and Epic Games regarding the Epic Games v/s Apple case, which mandated that Apple end its anti-steering rules.
Details
New rules for developers
As per new policies, developers seeking to link to alternative payment methods must apply for an "entitlement" and continue to offer Apple's in-app purchase system in their apps. They cannot rely solely on external payment platforms. "Developers may apply for an entitlement to provide a link in their app to a website the developer owns or maintains responsibility for in order to purchase such items."
What Next?
Apple to take 27% cut on external payments
Apple will charge a 27% commission on purchases made through these external platforms, or 12% for developers who are part of the App Store Small Business Program. This commission applies to "purchases made within seven days after a user taps on an External Purchase Link and continues from the system disclosure sheet to an external website."
Insights
Epic Games CEO criticizes updated policies
Epic Games CEO Tim Sweeney criticized Apple's policy changes, labeling the 27% fee as "anticompetitive" and taking issue with the rules governing how external links appear and function. He also pointed out the "scare screen" users encounter when leaving an app for an external site. Sweeney declared that Epic "will contest Apple's bad-faith compliance plan in District Court."