For years, developers operating on Apple’s App Store were bound by strict rules that limited their ability to communicate with customers about payment options. This created a closed ecosystem, often referred to as a “walled garden,” where Apple’s in-app purchase system was the only viable choice. This is now changing. As a result of a class-action lawsuit, Apple has released a new set of App Store Guidelines, marking a significant shift in its long-standing policies.
This article will break down the key revisions to Apple’s App Store Guidelines, explain the legal context that led to these changes, and discuss the profound implications for both developers and consumers.
The “Walled Garden” of the App Store
For more than a decade, Apple’s App Store has been the sole gateway for developers to sell their apps and digital content to billions of iPhone and iPad users. Under the previous rules, developers were restricted from using information gathered within their app to communicate with customers about payment methods outside of Apple’s in-app purchase system. This system requires developers to use Apple’s payment infrastructure and pay a commission of up to 30% on all transactions, a practice that has been a point of contention and the subject of numerous legal challenges.
The Class-Action Lawsuit and Settlement
The catalyst for these changes was a class-action lawsuit filed against Apple in 2019 by a group of American software developers. The lawsuit challenged Apple’s restrictive policies, arguing they were anti-competitive and harmed both developers and consumers. In August 2021, Apple announced a provisional settlement deal, which included several key concessions. The most significant of these was the agreement to revise the App Store guidelines to allow developers to communicate with their customers about alternative payment options.
Key Changes to App Store Guideline 3.1.3
The new guidelines represent a major departure from Apple’s previous stance. The most notable changes include:
Developers can now inform their customers about alternative payment options outside of their app. This means a developer can, for example, send an email to a customer who has downloaded their app, directing them to a website where they can subscribe to a service using a payment method other than Apple’s.
The removal of a provision that barred developers from using information gathered within the app to target users for payment outside the App Store. This gives developers more freedom in their marketing and customer communication strategies.
A new rule specifies that apps may ask for customer information such as name and email, but the request must be voluntary and should not hinder the user from using the app. This provides developers with a means to collect information needed for communication, while still protecting the user experience.
What This Means for Developers
For app developers, these changes are a game-changer. By being able to direct customers to alternative payment methods, developers have the potential to:
Reduce Commission Fees: By processing payments through their own websites, developers can avoid the 15-30% commission fee charged by Apple.
Build Direct Customer Relationships: Collecting customer information like email addresses allows developers to build direct lines of communication, fostering loyalty and enabling more targeted marketing.
Create New Revenue Models: This opens up opportunities for new subscription and payment models that were previously not possible within the confines of the App Store.
The Impact on Consumers
While this policy change is a significant win for developers, it also benefits consumers. With greater payment choice and potentially lower commission fees, developers may be able to offer their services at a lower price. Furthermore, the ability for apps to ask for email addresses (on a voluntary basis) could lead to better communication between the customer and the developer.
The Conclusion: Empower Action
Key Takeaways: Apple’s new App Store guidelines, a result of a class-action lawsuit settlement, have removed the “anti-steering” provision that prevented developers from informing users about alternative payment methods. This policy shift grants developers more freedom in their business models and creates new opportunities for direct communication and lower commission fees.
Actionable Steps:
- For Developers: Review your marketing and customer communication strategies to leverage the new freedom to discuss alternative payment methods.
- For Consumers: Be aware of these new communication options from developers, which may lead to new deals and offers outside the App Store.
Interested in how this policy will shape the future of app development?
Frequently Asked Questions
What was the reason for this policy change?
The policy change was the result of a class-action lawsuit settlement with a group of U.S. app developers who challenged Apple’s restrictive App Store policies.
Does this mean developers can now use their own payment systems inside the app?
No, the new guidelines still require developers to use Apple’s in-app purchase system for transactions made inside the app. The change only permits them to inform customers about payment options that exist outside the app.
What is the new rule about collecting customer information?
Apps can now ask for customer information like names and email addresses. However, this request must be voluntary and cannot prevent the user from accessing or using the app.
Does this apply to all developers worldwide?
The settlement was with a group of U.S. developers, but the policy changes have been applied to the App Store guidelines globally.
How does this affect Apple’s 30% commission fee?
The commission fee remains in place for all in-app purchases. However, by allowing developers to direct customers to outside payment methods, it provides a way for developers to potentially avoid that fee.