Apple has recently updated its App Store policies in the United States, responding to a court ruling that mandated significant changes in how the company manages app transactions. This decision came after a long legal battle between the state and Epic Games, the company behind Fortnite. Now, Apple just needs to free its platform from its walled garden and allow for other payment options. Now, dozens of apps, such as Delta’s game emulator, can implement direct payment systems via platforms such as Patreon. Unlike direct carriers, this approach lets them escape Apple’s high commission fees.
That’s when Judge Yvonne Gonzalez Rogers found Apple in violation of her original injunction. This time, due to the pressure created by the lawsuit, the rule changes were App Store wide. The court’s decision capped an extended courtroom clash between Apple and Epic Games. Epic charged Apple with anti-competitive behavior in its IAP monopoly. With these new guidelines in mind, Apple lowered its commission on sales made on the web to 27%. That’s down from a prior requirement of 30%. It still requires that in-app purchases go through its platform for these types of transactions.
This shift in policy allows businesses to update their iOS apps to include links to their websites for direct payments. Delta app has unveiled a cool new feature! Now, users can subscribe to Delta’s Patreon right from the mobile app, and Apple won’t receive a percentage of the subscription revenue. As Riley Testut, the original creator of Delta, put it,
“We can now freely mention our Patreon without giving Apple 27% of donations.”
Beyond Delta’s new features, other apps have reaped the rewards of Apple’s new, more developer-friendly policies. Well, Spotify finally received approval for a new app. It can now display pricing information directly and direct users to external payment providers. Right around the time that Amazon’s Kindle app got approved to add a “Get Book” button. This ruling effectively opens the door for users to buy things directly through the platform. Even Patreon’s own app similarly received the capacity to accept web payments in accordance with these developments.
These are huge changes that Apple is proposing to implement on its business practices. These changes come as a result of legal pressures and changing consumer expectations. The company continues to monopolize the marketplace for in-app purchases. Under the new rules, developers will be able to reduce their reliance on Apple’s ecosystem for transactions. This law might motivate additional states’ developers to check out alternative payment systems and spike competition inside the app market.
The ramifications of these changes go far beyond individual apps. It could be a significant first step in a trend away from tech giants making predatory practices app monetization strategy. It changes the power dynamic between developers and platform owners. Businesses have been scrambling to come to terms with the new regulations. As they enter, the landscape of available mobile applications has opened up, giving users more options and likely reducing costs.