In one week, Apple made two changes to its App Store rules. These new rules are the subject of litigation, regulatory investigations, and legislation around the world. However, these adjustments did not address the biggest concerns. Last year, there were reports that legislatures and regulators are considering dismantling the App Store’s business model. This result may cost Apple about 6% of sales (equivalent to $16 billion in the previous fiscal year). It will also make the company’s profit decreased by as much as 15%.
One of the App Store rule changes is that Apple will allow third-party payments for Netflix and other subscription services. This will give developers the opportunity to avoid Apple’s huge commissions. However, many of these companies have already given up using Apple’s payment system. Thus, this move is unlikely to affect Apple’s financial situation.
Gizchina News of the week
This shows that the resistance of third-party developers to Apple’s rules will continue. At present, Apple is still in court with the developer of the famous game “Fortnite”, and a US federal judge will announce a ruling on an antitrust case at any time.
Democratic Senator, Amy Klobuchar, said earlier this week: “Mobile technology has become an indispensable thing in our daily lives, and now only two app stores are available to consumers. Applications and how to access these applications have incredible powers. When you see this problem also appearing in other parts of the world, you will feel more clearly that we must take action”
Apple critics want much more from the company
Some people have called for Apple to allow other companies to operate application stores on its iPhone platform. Therefore, this move can provide a way to bypass the current payment system, which makes it almost impossible for developers to avoid paying shares to Apple. Critics also want Apple to abolish the so-called guidelines that prevent developers from telling their customers how to pay developers directly for their apps.
If you don’t need to sell apps through the Apple App Store, developers can avoid Apple’s commission. However, Apple does not allow them to do so, saying that this will threaten the security of users’ devices and data. In the “Fortnite” antitrust case, the game’s developer, Epic, is trying to seek a change in this regard.
In recent times, Apple has been at the hub of several litigations both from regulators and legislators. The company is trying to make some adjustments but it is doing so “smartly”.