One of the big monopoly arguments that has been leveled against Apple is the way that the company gets to insist that any app-related payments are taken via App Store billing.
This means that developers wanting to charge money for services in the form of iOS apps, whether that’s for the apps themselves or in-app purchases, must do so in a way that allows Apple to take its cut. If they don’t play by the rules, they can be unceremoniously removed.
Letting Developers Bypass the App Store
Things could possibly change, however. Minnesota has introduced a new bill in the form of potential legislature that could allow developers to circumvent App Store billing, potentially selling apps on in-app purchases for iPhone through other digital storefronts. Even if they did this, the bill would mean that Apple would be compelled to allow them to remain in the App Store.
This is very similar to the scenario that saw Fortnite-maker Epic Games booted out of the App Store last year, after Epic introduced a means by which it could avoid Apple taking its commission by selling in-app purchases outside of the App Store. Apple subsequently removed Epic Games from the App Store, triggering a legal battle between the two that continues to rage to this day.
“A lot of people are concerned about the increased influence and power that Big Tech has, and I think there’s a lot of interest in trying to make sure that we have a fair and open digital economy,” said Rep. Zack Stephenson, DFL-Coon Rapids, the sponsor of the bill in the House.
The StarTribune writes that:
“Tech companies swooped in within hours of the bill being introduced in the House and Senate to wage an intense lobbying effort to stop the proposal in its tracks … ‘They are loading up,’ said Stephenson, who has also sponsored legislation in the past to prohibit internet companies from favoring some websites over others in access speed. ‘I understand that they have been reaching out to some of my colleagues. I heard whispers of that occurring throughout the Capitol. I think we got someone’s attention.'”
Threatening to Destroy the iPhone
The report notes that Apple and Google recently blocked a similar bill which was proposed in North Dakota. Apple’s chief privacy engineer proclaimed that the legislation “threatens to destroy the iPhone as you know it.”
Regardless of whether this bill winds up passing, it suggests—alongside the failed North Dakota bill—that this is an area of increasing scrutiny for Apple. Last year, the company tried to dispel some of the anti-App Store sentiment by cutting its commission from 30% to 15% for the majority of developers earning through the App Store.
Image Credit: James Yarema/Unsplash CC