hometechnology NewsApple sets tough rules for app developers seeking payment alternatives

Apple sets tough rules for app developers seeking payment alternatives

Amidst legal battles with Epic Games, Apple permits app developers alternative payment options. However, complex rules include a one-time external link, text-only appearance, and warnings. Developers still face 27% Apple fees despite seeking payment alternatives.

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By Pihu Yadav  Jan 23, 2024 9:43:17 AM IST (Published)

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Apple sets tough rules for app developers seeking payment alternatives
Apple has opened the door for app developers to use payment systems other than its own, responding to legal pressure from Epic Games. However, hopes for reduced fees have been dampened, as Apple introduces a convoluted set of rules for developers.

Anticipating relief from Apple's 15% to 30% fees on app transactions, software makers were optimistic about the prospect of alternative channels. However, Apple quickly dashed those hopes by announcing it would still impose a substantial fee, taking as much as 27% of each outside transaction, even for internet-based purchases.
Despite winning most of the legal battle against Epic Games, Apple had to revise its policy restricting app developers from directing users to external payment methods. The new rules, designed with Apple's signature attention to detail, present significant challenges.
According to Bloomberg's Austin Carr, developers must now request approval from Apple to include a website link in their apps to an outside payment system. If approved, the link can only be displayed once in a text format.
"It must look like a text URL — meaning it can’t be a candy-coloured button that says 'Use PayPal' — and the text itself must match one of seven templates (e.g., 'For special offers, go to www.example.com')," Carr said.
Clicking the link prompts a warning about third-party websites, and the website must open in the device browser, potentially requiring users to log in again.
Crucially, developers must continue to offer in-app purchases through Apple, maintaining the higher fees, and cannot "discourage users" from using Apple's system.
Critics, including Epic Games and Spotify, have denounced Apple's move. Epic Games CEO Tim Sweeney called it a "bad-faith 'compliance' plan," and Spotify labelled it "outrageous."
According to Apple, the new restrictions and pricing structure comply with the court's order and follow frameworks developed in response to similar regulations abroad.
However, for now, app developers are left dealing with a confusing situation, questioning the fairness of Apple's restrictions.

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