Apple relaxes App Store rules

[WORLD] Apple has announced significant changes to its App Store policies, allowing developers to include external payment links within their apps for the first time. This move comes in response to a recent court ruling that found Apple in violation of previous legal agreements. While the company plans to appeal the decision, it is implementing the changes in the U.S. App Store as required.

Legal Background and Court Ruling

The changes stem from a prolonged legal battle between Apple and Epic Games, initiated in 2021. In a 2024 ruling, Judge Yvonne Gonzalez Rogers determined that Apple had willfully violated a 2021 injunction by imposing a 27% commission on off-app purchases and restricting developers from informing users about alternative payment options. The court found that Apple had misled the court and referred the case to U.S. prosecutors for potential criminal contempt proceedings.

The legal dispute began after Epic Games intentionally breached Apple’s App Store policies by introducing its own payment system within Fortnite, bypassing Apple’s in-app purchase framework. This move prompted Apple to remove Fortnite from the App Store, igniting a broader conversation about platform power, digital marketplaces, and developer rights. The case has since evolved into a landmark antitrust battle with potential implications for digital commerce across the tech industry.

Legal experts note that the 2024 ruling may serve as a precedent in future antitrust litigation involving digital gatekeepers. “This is not just about Apple and Epic,” said Fiona Scott Morton, a professor of economics at Yale University. “It’s about how we regulate dominant platforms in an increasingly app-based economy.” Analysts suggest other tech giants may now face increased scrutiny over how they manage ecosystems and monetize developer access.

Key Changes in App Store Policies

Effective immediately in the U.S., Apple has updated its App Store Guidelines to permit developers to:

Include External Payment Links: Developers can now add links within their apps directing users to external websites for purchases.

Offer Alternative Payment Methods: Apps can present users with options to pay outside of Apple's in-app purchase system.

However, Apple will still collect a commission on these transactions. Developers participating in the App Store Small Business Program will be charged a 12% commission, while others will face a 27% fee.

Apple has stated that developers must still apply for permission and follow a strict set of design and privacy guidelines when implementing external payment links. For instance, Apple requires a standardized disclosure sheet to inform users they are about to leave the App Store ecosystem, a move critics argue may deter users from completing external purchases. Some developers see this as a half-measure that maintains friction in the payment process.

Industry Reactions

The ruling and subsequent policy changes have been met with mixed reactions from the tech industry:

Support from Creators: Platforms like Patreon and Mighty Networks have expressed support, stating that the changes will allow creators to retain more revenue by bypassing Apple's commission fees.

Concerns from Competitors: Microsoft has criticized Apple's new policies in the European Union, calling them "a step in the wrong direction" as the company prepares to launch its own mobile gaming store.

Spotify, another longtime critic of Apple’s App Store practices, welcomed the court ruling and said it hopes the new guidelines will result in more equitable treatment of subscription-based apps. In a recent update, Spotify reintroduced features previously removed due to Apple’s payment restrictions, including the ability for users to subscribe directly through the app. The streaming giant emphasized that “meaningful change is long overdue.”

Apple's Response and Future Plans

Apple has stated that it will comply with the court's ruling in the U.S. App Store but intends to appeal the decision. The company is also exploring options to address the legal challenges in other regions, including Europe and the United Kingdom, where similar regulations are being enforced.

In anticipation of the EU’s Digital Markets Act, which came into effect in March 2024, Apple has already begun testing alternative app store models in Europe. These include support for sideloading apps and reduced App Store commissions for third-party marketplaces. However, regulators in Brussels have warned Apple against creating obstacles that undermine the intent of the new rules. Additional enforcement actions could follow if the company is found to be non-compliant.

Implications for Developers and Consumers

These policy changes mark a significant shift in Apple's approach to app store management. For developers, the ability to link to external payment methods offers greater flexibility and potential for increased revenue. Consumers may benefit from more transparent pricing and a broader range of payment options.

However, the effectiveness of these changes will depend on the outcome of Apple's appeal and how other jurisdictions implement similar regulations. The evolving landscape suggests a move towards a more open and competitive app ecosystem.