iOS app developers are in for an unpleasant surprise if they link to alternative payment methods following changes in the App Store guidelines. They thought they had won, but Apple has had its way.
Yesterday, The Supreme Court finally concluded the legal battle between Epic Games and Apple. To comply with the ruling that prohibits “anti-competitive” measures, the major iPhone manufacturer has adjusted its iOS App Store guidelines.
As a result, developers can now reference and link to alternative payment methods in their iPhone applications. Although this change may initially seem like a long-awaited victory, it is actually accompanied by restrictions that discourage developers from adopting it.
In fact, some developers could end up losing more money if they implement this new StoreKit External Purchase Link Entitlement.
Not all developers can implement it
Before a developer can reference an alternative payment method in their application, they must first submit a form and wait for Apple’s permission.
In order for the permission to be granted, the iOS/iPadOS application must be available in the US store, as this change does not affect the rest of the world. Additionally, the application must continue to be compatible with Apple’s IAP system while the external purchase link is applied.
Not to mention that those who participate in the Apple Video Partner Program and/or the News Partner Program will not be able to apply for it. If granted, the developer must also comply with the StoreKit External Purchase Link Entitlement restrictions.
Apple’s measure so that no one uses it
Undoubtedly, the previous restrictions discourage both developers and users from opting for external payment methods. However, Apple has also included a condition to further discourage developers from linking alternative payment methods.
Developers will have to pay Apple a commission of between 12% and 27% for purchases initiated through the external purchase link right of StoreKit. As a reference, the company charges developers between 15% and 30% when they use the App Store’s IAP system.
This means that developers would have to pay Apple up to 27%, along with the other fees they pay for processing payments on their websites. As a result, it may be cheaper for many of them to simply continue adopting Apple’s payment method and not reference any external options at all.
Ultimately, Apple’s intentions are very clear, and the App Store guidelines have been updated simply to comply with the ruling, not to help developers make more money.
While some developers may choose to do so, we can safely assume that many popular apps will not. Beyond the upcoming support for side-loading apps in iOS 17 in the EU, it appears that the App Store will remain unchanged for now.
