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Apple announced Monday an extension of its deadline to require in-app purchases for online events and classes offered within iOS apps until June 30, 2021. Apple previously adjusted what types of events are subject to its policy. In-app purchase and to the standard 30 percent cut back in September, with the original intention of requiring in-app purchases on all appropriate apps by December this year.
Apple cited the coronavirus pandemic and wrote in a developer update posted on its website: “As the world battles COVID-19, we recognize that adapting in-person experiences to digital remains a priority.”
Requiring in-app purchase options for external services such as video streaming and exercise classes offered via iOS has been part of company policy for quite some time, but this specific change focuses on adjustments made after the September complaint from Facebook. The Facebook issue was framed around event organizers losing much-needed money for their digital events offered through the Facebook app during COVID-19, due to the 30 percent purchase commission on the Apple app. Apple decided to waive the fee until the end of the year, and the company adjusted its policy to focus on group events and classes to keep individual experiences free of Apple fees.
This extension of the deadline means that developers have more time to incorporate in-app purchases into their applications where applicable and to temporarily reap all the profits from their sales. Apple’s other recent changes to the App Store suggest that it is inclined to make some concessions, either because of pressure from developers or regulatory scrutiny of its ongoing legal battle with Epic and an antitrust investigation in Europe.
The best example is the App Store small business program, recently announced by Apple. Any developer making less than $ 1 million in sales per year will be able to apply next year and, if approved, will receive a reduced commission of 15 percent on the App Store. Other companies like Amazon have negotiated such waivers, albeit in secret deals rather than public battles. Amazon Prime Video can offer subscriptions with a reduced Apple commission of 15 percent and sell in-app purchases and rentals without being forced to use Apple’s in-app purchase option.
