Apple Allows Alternative Payment Options in App Store - New Guidelines

Apple Updates App Store Guidelines for Developers

Apple has recently unveiled a revised set of App Store Guidelines, incorporating three significant modifications. One of these changes stems from a prior settlement agreement reached with a collective of U.S. app developers. This clarifies that developers are now permitted to directly communicate with their user base regarding alternative payment options available outside of their applications.

New Guidelines Regarding Customer Communication

Alongside this, a further updated guideline stipulates that applications can request customer details, such as names and email addresses. However, such requests must remain entirely optional for the user and should not impede their ability to utilize the app’s functionalities.

The third guideline, independent of any legal proceedings, provides details on how developers can leverage a new App Store feature – in-app events – which is scheduled for release next week.

Settlement Agreement and Payment Options

In August, Apple initially announced a proposed settlement in a class-action lawsuit initiated in 2019 by a group of U.S. app developers. A central component of this agreement was granting developers the ability to inform their users about payment methods available outside the iOS app and the App Store itself.

At the time, Apple emphasized that these changes would clarify developers’ capacity to utilize communication channels, including emails, to disseminate information about payment alternatives.

Furthermore, Apple affirmed that no commission would be levied on purchases completed outside the app or App Stores.

Removal of Restrictive Clause

These proposed alterations are now officially integrated into the App Store Guidelines. Specifically, Apple has removed a clause from guideline 3.1.3 that previously prohibited developers from utilizing information gathered within their app to target users outside the app with offers of purchasing methods other than Apple’s in-app purchases.

This former rule also extended to preventing the sending of emails to customer-provided addresses obtained during app registration.

The removal of this clause now allows developers to engage in these types of communications without restriction.

Guidelines for Requesting User Contact Information

Apple has also introduced a new section within guideline 5.1.1 (x) to provide further clarification on requesting user contact information. This section outlines the permissible methods for developers to solicit such data.

Regulatory Scrutiny and “Anti-Steering” Practices

The regulations surrounding customer contact, often referred to as “anti-steering” guidelines, have been subject to increasing regulatory attention in recent months. Legislators globally are evaluating whether Apple’s practices constitute monopolistic behavior by limiting developers’ ability to manage customer relationships, marketing, and payment system choices.

Apple has already been compelled to modify its App Store rules due to settlements in various markets.

International Regulatory Changes

South Korea, for example, has enacted legislation prohibiting both Apple and Google from mandating the use of their respective payment systems. In Japan, Apple reached a settlement with regulators last month concerning “reader” apps, now permitting them to link to their own websites directly from within their applications.

Epic Games Lawsuit and Ongoing Appeals

In the U.S., Apple is currently involved in a legal dispute with Epic Games, the creator of Fortnite. While the initial ruling is under appeal, it would have required Apple to allow developers to direct users to their own websites for direct payment of services or subscriptions, bypassing Apple’s payment systems.

However, today’s changes do not extend to allowing alternative payment systems to be directly embedded within applications.

Broader Impact of Regulatory Pressure

The updates regarding anti-steering practices represent just one area where regulatory pressure is influencing the policies of major technology companies.

Both Apple and Google have adjusted their commission structures to reduce their share of developer revenues, particularly for smaller businesses, media access apps, and news publishers. Google recently lowered its fees to 15% for subscription-based apps from the outset, a reduction from the previous tiered system.

In-App Events Feature

The additional new rule implemented today pertains to in-app events and provides guidance on utilizing this new functionality.

Introduced at WWDC, in-app events offer app developers a more effective means of showcasing activities within their applications, such as gaming competitions, film premieres, and live-streamed experiences. These events will begin appearing on the App Store with the release of the iOS 15.1 update on October 27.

Apple advises developers to ensure the accuracy of event metadata within App Store Connect and that events adhere to the specified dates, including across multiple storefronts. It also emphasizes that deeplinks should directly launch the event and that events can be monetized.

All three rule changes are effective immediately.