Apple moves to settle case with US developers - app store rules change (sort of)

[hishnash]

 

Summary

Apple is moving to settle a class action case in the US from a group of small developers. This will involves a few changes to the app store rules and some promises about how long other things will stay as they are.

* Developers will now be permitted to use email addresses/accounts created during signup in the apps to contact users to direct them to pay outside of the app store without apple taking any cut.

* Apple will keep the 15% Small Business Program program active for at least another 3 years

* Apple is creating some form of fund for such companies (based in the US) to `help them`

 

My thoughts

The removal of the rule that used to ban us devs from contacting people who crated their account on your iPhone app is a big deal. It enables a lot of companies that have free tires to go ahead let users create accounts on the phone then email them to prompt them to upgrade (Spotify is a great example).  

This could be a nice solution for FloatPlane also worth noting Luke was mistaken before apple no longer (have not for many years) require the price you use in the app store to be the same as the website.  Floatplane could have a button in app (when you have logged in) instead of saying `subscribe` next to a creator it could say `email me more info` or something  For floatplane if they want to they could also get into the media program that has 15% rate but they would be required to develop a TV os app.

 

The other changes a nice so that we are not worried at all of a sudden the 15% rate will jump up to 30% again.

Sources

https://www.apple.com/newsroom/2021/08/apple-us-developers-agree-to-app-store-updates/

[JacobFW]

Slightly disappointed this wasn't title Epic Win, but hey, you win some you lose some

 

This is great news, although I'm hoping this doesn't out to be like the new repair program from a few years ago, with one step forward and 3 steps back.

No doubt apple's lawyers are going to be looking for a loophole (assuming they didn't already craft one when they wrote this new policy).

[Kisai]

4 hours ago, hishnash said:

 

 

My thoughts

The removal of the rule that used to ban us devs from contacting people who crated their account on your iPhone app is a big deal. It enables a lot of companies that have free tires to go ahead let users create accounts on the phone then email them to prompt them to upgrade (Spotify is a great example).  

read: It allows companies to collect your contact information in order to sell it.

 

Now, I have a mixed opinion on this.

 

If the rule is "Apple can not do anything about/to a developer for contacting the Apple Customer if a customer relationship has been established" Then that's fine. That still requires that whatever acquisition is subject to the 30% commission, but beyond that, if the app provider has their own merchant account and the customer trusts the app, they can switch from apple billing to app billing. This would at least create an incentive for Apple to offer a reasonably competitive charge (eg 2.9%+50 cents) to retain that Apple relationship.

 

However I also frown at this, because the reason why I would choose to use the Apple payment is because I don't want to give 60 applications my credit card number. That was the entire purpose Paypal was supposed to save us from and Paypal has since screwed that up by handing out contact information to everyone who visits paypal.me links.

 

So this is going to increase a lot of blame shifting, where the apple customer switches from a one-time charge in the app to a non-cancelable recurring credit card charge that they can't ever cancel without waiting 30 hours on hold to cancel for a lower rate.

 

 

[hishnash]

1 hour ago, JacobFW said:

Slightly disappointed this wasn't title Epic Win, but hey, you win some you lose some

 

Epic case is still running, not finished yet.
 

Quote

No doubt apple's lawyers are going to be looking for a loophole (assuming they didn't already craft one when they wrote this new policy).

The change is very minimal, before if a user signed up with an account in your iOS app you were not legally permitted to send them emails promoting them to pay for things other than through the app. This change permits you to send those emails promoting them to sign up for things through your website. That is it.  

It's a small change but does remove the easiest anti-monopoly angle that can be used against apple.  You still can't link from within your app to a website, or even mention within your app but you can now use the email addresses of users you acquire through the app store as targets for email marketing (if they say they want this depending on your regional laws usr might need to opt in rather than opt out that is not apples rules but regional gov rules about email marketing).

 

[hishnash]

55 minutes ago, Kisai said:

read: It allows companies to collect your contact information in order to sell it.

 

Nope, it does not permit that (or change that) technically that is not forbidden in the app store as long as you declare it and let the user opt out (or in some regions due to local laws opt in).

 

 

57 minutes ago, Kisai said:

Then that's fine. That still requires that whatever acquisition is subject to the 30% commission, but beyond that, if the app provider has their own merchant account and the customer trusts the app, they can switch from apple billing to app billing. This would at least create an incentive for Apple to offer a reasonably competitive charge (eg 2.9%+50 cents) to retain that Apple relationship.

I think in most cases the customer acquisition involves no money at all, eg user download app and creates free account (apple don't get any money). Then developer emails suers promoting them to use developers payment platform.  Maybe in some cases i could see developer emails existing apple user informing them if they switch to the web payment platform it will be 30% cheaper (you are permitted to have a differs price on the app store to your website this rule changed over 7 years ago).

From a legal perspective apple removing this ban on contacting people who have given you their contact details is a very good way of avoiding future litigation, it is the easiest item in the app store rules to target with anti-monopoly attacks. 

 

[Video Beagle]

3 hours ago, hishnash said:

 if a user signed up with an account in your iOS app you were not legally permitted to send them emails promoting them to pay for things other than through the app. This change permits you to send those emails promoting them to sign up for things through your website. That is it. 

 

This was said by a iOS developer on MacRumors forum on this:

Quote

There is nothing, neither technically nor legally, preventing a developer from sending out emails to their customers. Only thing they need to do is get their users to register or other way provide their contact details.

So maybe the deal here is that Apple is offering to add a new API for apps to contact anonymous users via email. That would be more than just speech and a real valuable enhancement to the platform. I would love to get an email out to the users of my app. But since I don't require any form of registration, there is no way I can do that UNLESS Apple creates a new 'communication methode'. Sounds like this is exactly what they have committed to do!

 

FWIW...Apps have always been able to link to developer websites...and set up accounts on them. (I'm 90% sure that there are links in the app store itself that can take you to developer pages as well..at least there used to be, but I couldn't swear those are still there)

 

It was mentioned that there will be "opt out" for being contacted by devs, which is good, as I think a lot of people really don't want to be bugged,

[Arika]

14 hours ago, Video Beagle said:

(I'm 90% sure that there are links in the app store itself that can take you to developer pages as well..at least there used to be, but I couldn't swear those are still there)

Maybe, but you were never allowed to advertise anywhere in app that payments should be done off-platform. Still technically not allowed with these new rules, so i don't see any change to things at all. Apple found the biggest loop hole they could to "technically" allow something to get around the lawsuit, but something that ultimately no one will use.

 

I use gmail which auto categories my emails, this would be put into the "promotions" folder, something i never never never never look at. I think that's what Apple is banking on, that users wont care about emails from devs, but they can still say "hey we allowed them to do a thing"

[Video Beagle]

7 hours ago, Arika S said:

 Apple found the biggest loop hole they could to "technically" allow something to get around the lawsuit, but something that ultimately no one will use.

 

A settlement isn't someone finding a loop hole. It's a negotiation between the two parties to get somewhere they both agree on.

[hishnash]

9 hours ago, Arika S said:

I use gmail which auto categories my emails, this would be put into the "promotions" folder, something i never never never never look at. I think that's what Apple is banking on, that users wont care about emails from devs, but they can still say "hey we allowed them to do a thing"

Well it not uncommon for apps to require you to `confirm your email` .. that is an email that will not end up in the promotions folder. 

I think this will depend on the app, its will not help indie devs but for some mid sized companies it could be a nice way to use the app store to get new customers (yes this really is a thing) and also be able to sell to those customers. Such as floatplane.