On January 16, 2024, the US Supreme Court opted not to entertain any additional appeals in the protracted Epic Games antitrust case against Apple. In response to the resolution of the 2021 legal dispute between Apple and Epic Games, the tech giant based in Cupertino unveiled several modifications to the App Store guidelines. The key reform involves relaxing Apple’s guidelines, specifically the anti-steering rules that previously prohibited developers from incorporating alternative payment methods in their apps.
Updated Guidelines for the App Store
The revised guidelines specifically apply to the iOS or iPadOS App Store within the United States. For other storefronts, the previous guidelines remain unchanged. Under the new modifications, Apple permits app developers to include links to alternative payment methods using the StoreKit External Purchase Link Entitlement (US). Consequently, apps can redirect users to a website where they can input their credit card details.
However, there is a condition attached to this allowance. Apps must continue to provide purchases through Apple’s In-app purchase system. In other words, if an app doesn’t utilize Apple’s purchase system, it is not allowed to include links to third-party payment systems.
The guideline specifies that developers can request an entitlement, essentially a software tool, enabling them to incorporate links and buttons guiding users to an external website for payments. Moreover, developers are tasked with overseeing all accounts or purchases conducted outside the App Store.
Apple has granted permission for developers to showcase the link to the alternative payment method solely on “one app page the end user navigates to (not an interstitial, modal, or pop-up), in a single, dedicated location on such page, and may not persist beyond that page.” To ensure clarity, Apple has also furnished templates that app developers can utilize to inform users about alternative in-app payment systems:
- Purchase for [$X.XX] at [X]
- Explore special offers at [X]
- Avail [X%] off by visiting [X]
- Discover reduced prices at [X]
Apple’s Commission Still Applies
Even if a user opts to utilize third-party payment platforms, Apple will still receive a commission. App developers who are part of the App Store Small Business Program will incur a 12% commission, while other developers will face a commission as high as 27%. This commission is applicable to “transactions completed within seven days after a user taps on an External Purchase Link and proceeds from the system disclosure sheet to an external website.” Apple acknowledges the difficulty, and in some cases, the impossibility of collecting the commission.
This year has presented a challenging start for the tech giant. Recently, Apple bifurcated the App Store to comply with the EU’s DMA deadline. Now, it has revised the App Store guidelines, potentially avoiding another lawsuit.
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