Bypassing Apple's App Store Commission: A Game-Changer for Developers
App Store regulations relaxed following judicial intervention in favor of developers
After a fierce legal battle, Apple has finally loosened its grip on the App Store's payment system. Here's the lowdown on the new rules:
- Link Up, Save Bucks: Developers can now directed users to external payment platforms, allowing purchases to happen off the App Store. This move lets developers dodge Apple's commission fees on purchases made outside the app, a welcome change considering fees could reach up to 30% of transactions[1][3][4].
- Apple's Loss, Developers' Gain: developers stand to earn more from their apps now that Apple can't collect fees for transactions happening off the app. This shift in revenue could lead to better deals for consumers or fatter profits for companies[2][4].
Winners of the Rule Change: Spotify Takes the Front Seat
The rule change has already spurred immediate benefits for companies like Spotify:
- Spotify's Rebellious Move: Spotify swiftly updated its app to incorporate external payment systems, enabling users to buy subscriptions directly from Spotify's site. By doing so, Spotify cleverly avoids Apple's commission fees and provides customers with transparent pricing[5].
- Cost Savings: By sidestepping Apple's commission fees, Spotify reaps more revenue from its subscription sales. These savings could mean better prices for consumers or bigger profits for the company[2][5].
- Level Playing Field: The rule change promotes a fiercer competition among apps, providing consumers and developers more purchasing options. Spotify sees this as a major victory, advocating for a more balanced market for developers and a win for consumers[5].
[1]: https://www.bloomberg.com/news/articles/2022-06-10/apple-relaxes-app-store-payment-rules-after-court-order[2]: https://www.cnbc.com/2022/06/10/apple-relaxes-app-store-payment-rules-following-court-order.html[3]: https://techcrunch.com/2022/06/10/apple-changes-app-store-guidelines-to-allow-developers-to-provide-links-to-external-payment-systems/[4]: https://www.reuters.com/technology/apple-changes-app-store-rules-developers-provide-external-payment-options-2022-06-10/[5]: https://www.theverge.com/2022/6/10/23161152/apple-app-store-external-payment-links-spotify
- The change in App Store rules mandates developers to provide links to external payment systems, allowing them to save on commission fees, as seen with Spotify's strategic move.
- Congratulations to Spotify for swiftly incorporating external payment systems into their app, bypassing Apple's commission fees and offering transparent pricing to users.
- This business move by Spotify marks a significant advancement in tech-based finance, potentially leading to better deals for consumers or fatter profits for companies.
- The shift in Apple's policy could help create a level playing field in the tech business, fostering fiercer competition among apps and more purchasing options for consumers, as seen with Spotify taking the front seat.
- In the world of business and technology, Milanesi believes this rule change could set a precedent for a more balanced market for developers, advocating for fairer practices and better outcomes for consumers.
