Apple Relaxes App Store Rule, Allows Developers to Link to External Payment Methods

Apple, the tech giant known for its stringent control over its App Store, has recently announced a significant change in its developer guidelines. The company will now allow U.S. developers to link to external websites for in-app purchases, marking a major shift in its long-standing App Store policies.

This change comes shortly after the United States Supreme Court rejected an appeal to reconsider a lower court ruling requiring Apple to allow developers to direct customers to alternative payment methods. The new rule applies only to iOS and iPadOS apps in the U.S. app stores, and developers are still required to pay a commission for in-app purchases not made via the App Store.

Apple’s decision to relax its App Store rule is a significant concession, given its history of strict regulations that have been criticized for being draconian and arbitrary. The company’s rule barring developers from communicating with users about alternative payment methods was a central issue in the Epic v. Apple trial in 2021.

The new guidelines allow developers to notify users about alternative payment methods in specific ways. For instance, they can only be shown in an app one time, and only in a single, dedicated location. App makers are also prohibited from using in-app pop-ups or mentioning outside payments in their App Store listing.

Despite this relaxation of rules, Apple continues to maintain tight control over payments. Developers will need approval from Apple before they can take advantage of the new rule. Moreover, they are required to submit monthly reports, even if they haven’t processed any transactions, and the company has the right to audit their records.

Apple’s requirement for developers to pay a commission for purchases made outside of its App Store is a contentious issue. The company argues that it will be difficult, if not impossible, to collect these fees. In court documents, Apple had previously argued that it would be “exceedingly difficult and, in many cases, impossible” to collect the fees. However, in its messaging to developers, the company insists that they are required to submit monthly reports and that the company has the right to audit their records.

The change in Apple’s App Store policy is a significant victory for developers, who have long been frustrated by the company’s strict regulations. High-profile developers who have previously run up against Apple’s App Store policies were sharply critical of the company’s latest changes.

Epic CEO Tim Sweeney called the 27 percent fee “anticompetitive” and said that “Apple will front-run competing payment processors with their own ‘scare screen’ to disadvantage them.” He added that Epic would pursue a legal challenge to its changes in District Court. David Heinemeier Hansson, cofounder of the Hey email app, which publicly battled with Apple over its payment policies, also slammed the changes. “Apple is going to poison the one victory Epic secured in their lawsuit so bad nobody would ever think to use it,” he wrote on Twitter.

Apple did not immediately respond to a request for comment.

In conclusion, Apple’s decision to allow U.S. developers to link to external websites for in-app purchases is a significant shift in its App Store policies. While this change is a victory for developers, Apple continues to maintain tight control over payments and requires developers to pay a commission for purchases made outside of its App Store. The company’s requirement for monthly reports and its right to audit developers’ records raises questions about its ability to enforce these terms. The reaction from high-profile developers who have previously clashed with Apple over its App Store policies has been critical, with some threatening legal action. Only time will tell how this change will play out for Apple and its developers.