New App Store Policies: Apple Will Earn 30% Commission on NFT Apps | 13/11/22

In the latest version of its App Store guidelines, Apple refers to the rules for in-app purchases in apps from NFT providers. In the industry, however, the measures are mostly met with criticism.

• Apple regulates NFT use in iOS-Apps
• Commission on in-app purchases
• Curse or blessing for the NFT industry?

Apple unveils new App Store policies

iPhone maker Apple has recently updated the guidelines for its own app marketplace, the App Store. Can be used on devices running Google’s Androidthe operating system is running, apps from other sources are also installed, iPhone and iPad users must go through Apple’s App Store. The group thus has great power when it comes to the terms for app developers. The group has long been criticized because of the required commission of 30 percent, which is charged on the purchase of apps and in-app purchases, and which the company deducts from the developers. With the current version of the app rules, Apple now also secures a share in the booking of so-called ad “boosts” – much to the displeasure of the Internet group Meta Platforms, which is behind the social network Facebook.

Apple wants a piece of the NFT pie

As part of the recent update to the App Store guidelines, the group also commented for the first time on how the purchase of NFTs via apps from relevant trading exchanges such as OpenSea is regulated. “Apps may use in-app purchases to sell and resell services related to non-fungible tokens (NFTs), such as minting, listing and transfer,” the provision reads. In this case, Apple also keeps 30 percent of the purchase price paid in the app. However, if you’ve already purchased the collectibles with access to the NFT marketplaces, they can appear in the corresponding apps, Apple assures. “Apps may allow users to view their own NFTs, provided that owning NFTs does not unlock any features within the app.”

No references to external purchase mechanisms allowed

App providers often refer to external options to purchase or activate features with links or buttons. However, Apple will also prevent that in the NFT area. “Apps may enable users to browse NFT collections owned by others, provided the apps do not contain buttons, external links, or other calls to action that direct customers to purchase mechanisms other than in-app purchases,” the group states. Apple will ensure that the NFT purchases are actually implemented as in-app purchases – including a commission of 30 per cent.

Negative attitude among NFT providers

The new provisions are causing criticism, especially among the operators of the NFT marketplaces. Sidney Zhang, co-founder of NFT trading platform Magic Eden, explained to “The Information” that such regulations tend to lead to start-ups cutting back on innovation. So it was never an option for Magic Eden to offer the purchase of NFTs through the AS app because the commission was too high and disproportionate. Although Apple wanted to find a compromise and reduce the amount of payments for companies that make less than 1 million dollars a year to 15 percent, the NFT dealer still refused.

“It feels like Apple doesn’t really want users to be able to buy or sell NFTs,” Alexei Falin, CEO of NFT exchange Rarible, told the outlet. In-app purchases are opposed to requiring “fixed subscriptions or fixed prices.”

Biggest threat to Web3

Jason L. Baptiste, CEO of Web3 fitness platform YDY, is also critical of Apple’s latest guidelines, as he explained via Twitter.

“Make no mistake – Apple is now the biggest threat to Web3 with their latest App Store policies they released today,” the entrepreneur warned. “Most importantly, this is Apple’s biggest and perhaps first official statement on crypto, NFTs and Web3: Apple doesn’t welcome it, instead it sees Web3 as a threat. This is a step in the wrong direction, both politically and personally technological point. of view.” In Baptiste’s view, game developers focused on Web3, NFTs and cryptocurrencies are likely to suffer the most from the new set of rules. Apple’s actions must be understood as a direct attack on the sector, as the company gets a large part of its App Store revenue from mobile games and Web3 applications to threaten them.

Positive signal for the Web3 industry?

Mattias Tengblad, however, sees things differently. The CEO of Web3 platform Corite told BeInCrypto that Apple’s new NFT rules are a positive signal. “Many marketplace apps will likely create companion apps for iOS that allow users to organize, view and otherwise interact with their NFTs while using a browser-based interface for the actual buying and selling part,” Tengblad said . “There are certainly ways around these restrictive fees.” Rather, he sees it as a good sign that Apple has not banned NFT apps from the App Store, but instead regulates their use.

CoinGeek, on the other hand, points out that the App Store guidelines do not currently apply to trading apps like Binance. Cryptocurrencies can be purchased in the application without paying Apple a 30 percent commission.

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