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Apple Updates App Store Rules, Requires Developers to Share Revenue from External Payment Platforms

apple-app-store-payment-updates

Apple has amended its App Store standards to clarify how developers can integrate with third-party payment platforms. If developers utilize an outside payment platform, they will still owe Apple a portion of the proceeds.

According to a help page for external purchase links, Apple will take a 27% share (rather than 30% in many circumstances) or 12% if a developer is a member of the App Store Small Business Program.

Apple's App Store Policy Now Allows US Developers To Link To Outside Payments

Section 3.1.1(a) of the App Store Review Guidelines explains more about the new requirements for developers who want to link to alternative payment methods, such as how they must ask for an "entitlement" to do so. Developers can't only accept money from outside Apple's walled garden; they must also include Apple's in-app purchase system in their apps.

The modifications come after the Supreme Court declined to hear Apple and Epic's appeals of the Epic Games v. Apple judgment, which compelled Apple to cease its anti-steering restrictions, as per The Verge.

Epic's founder and CEO, Tim Sweeney, is not thrilled with Apple's policy changes. He considers the 27% fee "anticompetitive," attacks Apple's regulations for how links appear and function, and highlights the "scare screen" that consumers will encounter when leaving an app to visit an external site.

He adds Epic "will contest Apple's bad-faith compliance plan in District Court." Apple has also described how it is complying with the order in a new court filing, and Epic spokesperson Natalie Munoz says, "We intend to challenge Apple's Notice of Compliance at the District Court."

Apple Will Still Get A Commission

Apple has also stated that it will charge a commission for purchases made using alternative payment methods. This commission will be 12% for developers who are part of the App Store Small Business Program and 27% for other apps, according to 9To5Mac.

The fee will be based on "purchases made within seven days after a user taps on an External Purchase Link and continues from the system disclosure sheet to an external website."

Apple said developers would have to submit an accounting of qualified out-of-app purchases and pay the relevant commissions. The tech behemoth stated:

“To help ensure collection of Apple’s commission, developers are required to provide a periodic accounting of qualifying out-of-app purchases, and Apple has a right to audit developers’ accounting to ensure compliance with their commission obligations and to charge interest and offset payments.

As both this Court and the Ninth Circuit recognized, collecting a commission in this way will impose additional costs on Apple and the developers.” However, Apple claims that collecting this commission will be "exceedingly difficult and, in many cases, impossible."

Photo: Zhiyue/Unsplash

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