Apple’s New App Store Restrictions
- Epic Games case is prompting important changes to Apple's App Store policies.
- spotify hailed the move as a "victory for consumers,artists,creators and authors." The company stated it will now be able to "freely display clear pricing information and link to...
- The court order mandates several changes to Apple's App Store practices.
Apple app Store Rules Relaxed After Court Ruling
A recent U.S. court decision in the Apple v. Epic Games case is prompting important changes to Apple’s App Store policies. The ruling restricts Apple from enforcing certain long-standing regulations, potentially reshaping the app marketplace. Spotify is among the first major companies to respond,securing approval for a U.S. app update that redirects premium subscription payments to the web, bypassing Apple’s commission.
spotify hailed the move as a “victory for consumers,artists,creators and authors.” The company stated it will now be able to “freely display clear pricing information and link to purchase” after nearly a decade of restrictions.
Key Changes to Apple’s App Store Policies
The court order mandates several changes to Apple’s App Store practices. Judge Yvonne Gonzalez Rogers,who presided over the case,previously accused an Apple manager of making false statements during proceedings. The court found Apple in violation of a 2021 “anti-steering regulation” designed to prevent the company from excluding competitors.
Six New Rules and Prohibitions
The court issued six primary orders against Apple. These include:
- Apple can no longer dictate the appearance or placement of links for web payments within apps.
- Developers have complete freedom regarding the number of links they include.
- Apple must permit links in all app formats, without exception.
- Apple is prohibited from charging commissions on payments made outside of the app (off-app payments), monitoring these transactions, or requiring developers to provide information about them.
- Restrictions on buttons or call-to-actions are lifted, allowing developers to implement any desired web redirection process.
- Apple is not permitted to display “scare screens” for web redirects but must provide neutral messaging indicating that payment will be processed on a “third-party site.”
- Developers can now implement dynamic links to their offers, enabling variable pricing based on user type or usage. Previously, Apple only allowed static pages.
Epic Games to Relaunch “Fortnite,” Develop Web Shops
Epic Games,the company that initiated the legal challenge,is also responding to the ruling. The company plans to bring “Fortnite” back to the App Store in the U.S., complete with direct purchase links to the web. Epic Games also intends to assist developers in implementing the new regulations through its offerings, including Epic Games Store webshops. These webshops will allow developers to utilize Epic’s payment infrastructure for a fee (12% on revenue exceeding $1 million USD).
The legal battle between Epic Games and Apple began in 2020 after Apple removed “Fortnite” from the App Store due to the game’s inclusion of web links to paid offers. Epic Games achieved a partial victory in 2021 with the issuance of the anti-steering regulation. Apple subsequently reduced its commission on web purchases to 27% from 30%, a move reportedly met with internal concerns.
Apple App Store Rules Changes: Your questions Answered
What’s Happening with the Apple App Store?
What’s new with the Apple App Store?
A recent court ruling in the Apple v. Epic Games case is forcing Apple to change its App Store policies. This means some long-standing regulations have been relaxed, perhaps reshaping how apps and in-app purchases work.
Why is this happening?
The changes stem from a U.S. court decision in the Apple v. Epic Games case.the court found Apple in violation of anti-steering regulations.
What is the “anti-steering regulation”?
The ”anti-steering regulation” aims to prevent Apple from excluding competitors and steering users towards its own payment systems. This helps open the market for web payments to bypass commissions.
Key changes to Apple’s App Store Policies
What are the main changes Apple must make to its App Store policies?
The court order mandates several changes to Apple’s App Store practices. Here are the main points:
Six New Rules and Prohibitions
What are the six new rules and prohibitions Apple must follow?
Here is a breakdown of the six primary orders against Apple, as directly stated in the provided content:
- Apple can no longer dictate the appearance or placement of links for web payments within apps.
- Developers have complete freedom regarding the number of links they include.
- Apple must permit links in all app formats, without exception.
- Apple is prohibited from charging commissions on payments made outside of the app (off-app payments),monitoring these transactions,or requiring developers to provide details about them.
- Restrictions on buttons or call-to-actions are lifted, allowing developers to implement any desired web redirection process.
- Apple is not permitted to display “scare screens” for web redirects but must provide neutral messaging indicating that payment will be processed on a “third-party site.”
- Developers can now implement dynamic links to their offers, enabling variable pricing based on user type or usage. Previously, Apple only allowed static pages.
How does this impact developers?
Developers now have more freedom. They can include links to external payment options without Apple’s restrictions. They are not required to permit Apple to charge commission.
How does this benefit consumers?
The changes are intended to be beneficial for consumers, allowing for potentially lower prices for subscriptions and purchases, as developers can bypass Apple’s commissions.
Companies Responding to the Ruling
Which companies are reacting to these changes?
Spotify is among the first major companies to respond. Epic Games is also responding to the ruling.
How is Spotify responding?
Spotify secured approval for a U.S. app update that redirects premium subscription payments to the web,bypassing Apple’s commission. They are now able to “freely display clear pricing information and link to purchase” after nearly a decade of restrictions.
What are Epic games doing?
Epic Games, the company that brought forth the legal challenge, plans to bring “Fortnite” back to the App Store in the U.S. with direct purchase links to the web. They also intend to support other developers with the new regulations, including via Epic Games Store webshops.
Impact on Revenue and Commissions
Can Developers avoid Apple’s commissions now?
Yes, a key part of the ruling allows developers to direct users to external websites for purchases (off-app payments), which bypasses Apple’s commission.
Does Apple still get a commission?
Apple is prohibited from charging commissions on payments made outside of the app (off-app payments). Though, Epic Games Store webshops will utilize epic’s payment infrastructure for a fee of 12% on revenue exceeding $1 million USD.
What was Apple’s commission previously?
Apple had charged a commission of 30% on in-app purchases, which was reduced to 27% on web purchases.
The Epic Games vs. apple Legal Battle
When did the legal battle between Epic Games and Apple begin?
The legal battle began in 2020 after Apple removed “Fortnite” from the App Store due to Epic Games’ use of web links to offer paid purchases.
What was Epic Games’ main complaint?
Epic Games objected to Apple’s commission structure and its requirement that developers use Apple’s in-app purchase system.
What was the outcome of the case?
* Epic Games achieved a partial victory in 2021 with the issuance of the anti-steering regulation.
* The more recent U.S. court decision has restricted Apple from enforcing some long-standing regulations.
How do these changes compare to the previous rules?
| Feature | Previous Apple Policy | New Apple Policy (Post-court Ruling) |
|---|---|---|
| Links for Web Payments | Apple dictated appearance and placement | Developers have complete freedom |
| Number of Links | Restrictions existed | Developers can include as many as they wish |
| Links in All App Formats | Restricted in some cases. | Permitted in all formats without exception |
| Commissions on External Payments | Charged commissions on external purchases | Prohibited from charging commissions |
| “Scare Screens” | Allowed | Prohibited. Neutral messaging required. |
| Dynamic Linking | Allowed only static pages | Developers can now implement dynamic links. |
