Apple updated its Developer Guidelines today to allow US-based developers to link to the web to inform users of other ways to subscribe to a service without using in-app purchases. This came after the US Supreme Court’s decision not to hear appeals from both Apple and Epic Games on Tuesday.
The company mentioned on Support page And that even if developers use a link to direct users to other options for digital purchases, they will have to pay a 27% discount to Apple. For developers who are part of Apple’s Small Business Program or who automatically renew subscriptions for a second year, the fee is reduced to 12% from 15%.
Essentially, Apple gives developers a 3 percentage point discount for using alternative payment methods. This may not be enough in some cases as developers will still have to pay fees to another payment processor. It is worth noting that Apple allows a 3-point discount for Dutch dating apps and a 4-point discount on its commissions for apps in South Korea.
In 2021, a lower court ruled that Apple could not prevent developers from including links in the app to alternative payment methods. With the recent Supreme Court decision, the Cupertino-based tech giant will have to follow the order.
In updating the outlines The App Store rule is changingThe company has insisted that Apple’s payment system is the “most convenient, safe and secure” method for in-app purchases. It also noted that if developers use other payment methods, features like Family Sharing won’t be available to users, and Apple won’t be able to help customers with refunds and manage subscriptions — putting the burden on developers.
Apple also stated that developers should do this Apply for permission to include links in their apps. Additionally, the developer will need to submit transaction reports within 15 days of the end of the calendar month.
The iPhone maker also detailed interface guidelines developers must follow including text to note that users may not be able to use features such as subscription management if they are using a third-party payment option.
Even after these guidelines are published, Apple feels that collecting a commission will be “extremely difficult and, in many cases, impossible” due to the size of the App Store, he noted. 9to5Mac.
According to a report by data.ai, the app economy showed a sign of recovery as consumers spent over $171 billion across the App Store, Google Play Store, and other Android app stores. However, regulatory moves like the EU’s Digital Markets Act (DMA) will force Apple’s hand Allow side loading and third-party app stores – a move that could impact app store revenues.
Apple isn’t the only one facing regulatory scrutiny regarding app distribution on phones. In December, a jury found Google guilty in a case against Epic Games and deemed the search giant engaged in anticompetitive conduct. Now, it is up to the judge to decide the next steps and remedies.
Separately, in December, Google paid $700 million in settlement with the US Attorney General over another Play Store monopoly case. As part of the case, the company made changes to the Play Store model to allow alternative billing to developers.
Earlier this month, Google announced that it would allow more types of real money apps on the Play Store later this year and would take fees from developers in an effort to boost its bottom line.