How Recent Rulings Are Reshaping Payment Options in iPhone Apps

iPhone applications are undergoing notable changes. For instance, the Kindle app now allows users to purchase books directly through its website. Spotify has introduced free trial offers, and Patreon enables subscribers to contribute more directly to creators.

These adjustments are an early indication of the impact of a recent judicial decision that compels Apple to allow apps to present promotions and handle payments from users without routing through the App Store. This ruling opens the door for apps to provide new conveniences, such as direct book purchases, while avoiding Apple’s traditional 30 percent commission fee, potentially lowering costs for consumers.

For over ten years, Apple mandated that all app transactions use its payment system, collecting a commission on every sale.

This long-standing policy is now subject to change. Below is an overview of the recent court ruling and the anticipated effects on iPhone applications.

Key Points of the Court’s Decision

Judge Yvonne Gonzalez Rogers, overseeing the case initiated by Epic Games in 2020, ruled that Apple can no longer charge commissions on sales that direct users outside the app. Additionally, the ruling prohibits Apple from imposing restrictions that prevent developers from adding buttons or links enabling users to pay apps directly for goods and services. Apple is also barred from displaying warnings that discourage users from leaving the App Store to make payments.

Implications for iPhone Applications

Historically, Kindle avoided selling books directly within its app to sidestep Apple’s 30 percent fee. With the new ruling, it has introduced a 'Get Book' button redirecting users to its website to complete purchases. Similarly, Spotify, which was previously restricted from offering free trials within its app, now features a button enabling a three-month trial period.