Tim Cook Finally Takes His Foot Off The App Store Hose: External Payment Platforms Now Accessible For US Developers

In a recent development, Apple Inc. AAPL has revised its App Store policies, allowing U.S. developers to incorporate links to external payment platforms.

What Happened: The updated guidelines, as reported by The Verge, specify that developers will still have to pay Apple a percentage of the transaction. This fee is set at 27% (as opposed to the usual 30%) or 12% for developers enrolled in the App Store Small Business Program.

Developers must apply for an “entitlement” to enable alternative payment methods, as per Section 3.1.1(a) of the App Store Review Guidelines. They are also required to offer Apple’s in-app purchase system alongside external payment options.

The changes come in the wake of the Supreme Court’s decision not to hear the appeals of Apple and Epic Games in the case, which led to Apple being instructed to discontinue its anti-steering rules.

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Tim Sweeney, CEO of Epic Games, has expressed dissatisfaction with Apple’s new policies. He has criticized the 27% fee as “anticompetitive” and the rules governing the appearance and functionality of the links. Sweeney has also highlighted the “scare screen” that users will encounter when leaving an app to visit an external site.

Why It Matters: The recent changes in Apple’s App Store policies are a direct result of the Supreme Court’s decision in the Epic Games v. Apple case. Following the ruling, Apple was required to make adjustments to its policies, including allowing developers to use external payment methods. However, these changes may not fully meet the demands of all developers, as evidenced by Epic Games’ intention to contest Apple’s compliance plan in the District Court.

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Photo by Laurenz Heymann on Unsplash