Apple has been compelled to revise its App Store guidelines following a ruling by a US District Court, which mandates that the tech giant allow developers to include external links or payment gateways for in-app purchases and subscriptions.
This decision marks a significant shift in Apple’s business practices and spurred by a longstanding antitrust case brought against Apple by Epic Games in 2020. Apple was accused of being monopolistic in its App Store and for its in-app payment restrictions.
Table of contents
Apple Revises App Store Guidelines Following Court Order, Allowing External Payment Systems for Developers
Under the new ruling, Apple will be unable to charge its regular 27-30% commission to developers when they use their own external payment systems for subscription and digital sales.
The fee, known as the ‘Apple Tax,’ has been one of the most controversial issues in the tech world, with detractors saying it has stifled competition and driven up the cost of apps. Even after a 2021 injunction in favor of Epic Games, Apple continued to charge a 27% commission when it permitted external payment systems last year, violating the court’s prior ruling.
The ruling also bars Apple from preventing developers from including buttons, external links, or other calls to action that direct customers to third-party payment options inside the apps. The court also banned Apple from taking steps such as displaying pop-up messages when people seek to make purchases outside the app, which the company had used to steer customers away from third-party platforms.
Developers will likely cheer the move, which they see as a direct stab at developers like Spotify, Epic Games, and others who can now keep 100 percent of their earnings.
Apple changed its App Review Guidelines in response to the ruling, but it vehemently disagreed with the decision. The company intends to appeal and says its existing system for payment offers better privacy, security, and convenience. Apple will, however, comply with the order while the appeal is pending.
FAQs
Apple is required to allow external payment systems for in-app purchases and subscriptions following a US court ruling.
The ruling enables developers to avoid Apple’s 27-30% commission and retain 100% of their profits from external payment systems.
