The US App Store has opened up third-party payment. Can small and medium-sized developers counterattack the giant ecosystem?

The US App Store has opened up third-party payment. Can small and medium-sized developers counterattack the giant ecosystem?

1. The Event: A Legal and Regulatory Turning Point

• Digital Content Payments: U.S. users can now bypass Apple’s payment system for subscriptions (e.g., Netflix, Spotify) and media purchases.
• Music Streaming Exemption: Platforms like Spotify can guide users to their websites for sign-ups without Apple’s 30% fee.
• Reader Apps: Magazines, books, and video apps may include external payment links without prior approval.

• Legal Pressure: A 2024 California court ruling deemed Apple’s payment system monopolistic, forcing permanent policy changes.
• Global Precedent: While initially U.S.-only, Apple’s move signals potential global compliance adjustments as regulators in the EU, Korea, and Japan intensify scrutiny.

2. Key Guidelines: What Apple Now Permits

3.1.1 In-App Purchase Requirements

• Mandatory Use: Developers must use Apple’s In-App Purchase system for unlocking features (e.g., game levels, premium content).
• Exceptions:
  • 3.1.1(a) External Links: U.S. apps may include buttons linking to developer-owned websites for purchasing digital goods, provided the link discloses:
    • “Other purchase options may cost less.”
    • No in-app promotion of external payment methods (e.g., pop-ups).

3.1.3 Special Cases

• 3.1.3(a) Reader Apps:
  • Apps offering magazines, books, or music may include account management links to external sites.
  • External links need no Apple approval in the U.S.
• 3.1.3(e) Physical Goods/Services:
  • E-commerce, ride-hailing, and food delivery apps must use third-party payments (e.g., Apple Pay, credit cards).

3.1.1(b) Music & Cloud Services

• Music Streaming Entitlement: Spotify and Amazon Music may link to web-based subscriptions.
• Multiplatform Services: Cross-platform apps (e.g., Adobe Creative Cloud) can direct users to external purchases if mirrored in the App Store.

3. Impact Analysis: Winners, Losers, and Strategic Shifts

For Developers

• Cost Savings:
  • A Netflix subscription with $1.99B annual revenue could save ~$60M in fees by shifting to web payments.
  • Independent creators (e.g., indie game devs) gain pricing flexibility.
• New Challenges:
  • User Friction: 15–20% of users may abandon purchases after leaving the app (Sensor Tower data).
  • Compliance Risks: Misleading external links (e.g., “Cheaper on Web”) trigger instant rejection.

For Apple

• Revenue Hit: Services revenue ($22.8B in 2024) may drop 5–8% as top-tier apps defect.
• Legal Mitigation: Reduces exposure to U.S. antitrust lawsuits but risks scrutiny in Europe.

For Users

• Price Competition: Spotify and Netflix may offer exclusive web discounts.
• Security Concerns: Increased phishing risks as users navigate external sites.

4. Developer Action Plan: Navigating the New Rules

4.1. Hybrid Payment Models

• Strategy: Use Apple’s system for low-cost purchases (<$5) and external links for high-value subscriptions.
• Example: Adobe Creative Cloud offers in-app purchase for single apps but links to web bundles.

4.2. UX Optimization

• Seamless Redirects: Implement Universal Links for instant website transitions.
• Cross-Platform Sync: Use Firebase to unify user accounts across web and app.

4.3. Compliance Safeguards

• Design Restrictions:
  • Avoid phrases like “Save 30%” near external links.
  • Label links as “Manage Account” (not “Pay Less”).
• Data Isolation: Do not share Apple Pay user data with external payment systems.

4.4. Marketing Adjustments

• ASO Strategy:
  • Use keywords like “no Apple tax,” “web purchase,” and “iOS third-party payments.”
  • Highlight price parity in screenshots (e.g., “Same price on Web”).
• CRM Expansion: Collect email addresses via in-app prompts to build independent user bases.

5. Future Outlook: Global Expansion and Ecosystem Disruption

Regulatory Domino Effect

• EU Adoption: Apple is negotiating with the European Commission to extend payment freedom to EU developers by 2026.
• Asia-Pacific Pressure: South Korea’s Telecom Business Act amendments may force Apple to comply by late 2025.

Technical Evolution

• Web3 Integration: Crypto payments via Coinbase or MetaMask could emerge via StoreKit entitlements.
• Super App Competition: WeChat and Kakao may leverage cross-platform payments to challenge Apple’s dominance.

Apple’s Counterplay

• Exclusive Content: Strengthen Apple Arcade and Apple One bundles to retain users.
• Data Monetization: Expand HealthKit and iCloud analytics to offset services revenue losses.

Conclusion: A New Era of Openness and Complexity