Apple is making a rare turnabout on one of its most controversial App Store policies that will now allow developers of apps like Netflix and Spotify to actually provide links to sign up for subscriptions outside the App Store.
This so-called “anti-steering” rule has arguably been one of the silliest and most restrictive App Store policies in existence. For years, developers were told that they had to either sell their subscriptions through Apple’s in-app purchasing system — with 30% of those subscriptions going into Apple’s coffers — or avoid any mention at all of how customers could actually sign up for an account with their service.
It was an obvious move intended to help Apple collect its take of subscriptions “sold” through iPhone and iPad apps, but it also created a terrible customer experience for these apps. For example, new Netflix subscribers who chose to start by downloading the iPhone or iPad apps would be presented with a welcome screen telling them that they couldn’t sign up for a Netflix account in the app. However, no additional information was provided on how to go about signing up.
You can’t sign up for Netflix in the app. We know it’s a hassle. After you’re a member, you can start watching in the app.
Netflix Welcome Screen on iPad
While it’s fair to say that most users could grasp the concept of going to the Netflix website in their browser — even Mobile Safari on their iPhone or iPad — and signing up there, this wasn’t a luxury that developers of less mainstream apps enjoyed.
It also created more needless controversy when apps that fell into categories that didn’t qualify for the same exemption, like email service Hey, tried to leave themselves out of Apple’s in-app purchasing system. Even though Hey presented the same sort of introductory screen as Netflix, email apps don’t fall into Apple’s category of “reader” apps. Therefore it’s not allowed to sell mandatory in-app subscriptions outside the App Store.
While Apple and Hey eventually came to terms, it was only solved by the developer letting users sign up for a very limited trial to ensure that the app worked out of the box without requiring a subscription.
However, in a public announcement this week, Apple has stated that beginning early next year, at least some developers will be able to actually direct users to their websites to set up a new account or manage their existing one. This will include letting them pay for subscriptions directly on the developer’s website.
Lest we think Apple is merely magnanimous here, it sounds like the company’s hand was forced by the Japan Fair Trade Commission (JFTC) following its investigation into suspected violations of the antimonopoly act.
Apple wasn’t specifically cited for this behaviour by the JFTC. It appears that’s because it effectively reached an “out of court” settlement, offering to revise its Guidelines to remove the anti-steering provisions. As a result, the JFTC closed the investigation, noting that this one point satisfied all its concerns that Apple’s conduct was monopolistic.
During the JFTC’s investigation, Apple proposed to take measures such as revising the Guideline related to the alleged conduct above. As a result of the JFTC’s review on this proposal, the JFTC recognized it would eliminate the abovementioned suspicion and decided to close the investigation on this case after the JFTC confirms the measure has been taken.
Japan Fair Trade Commission
One Step at a Time
While the infamous Epic Games case against Apple is asking for a lot more changes, several legal analysts expect that Judge Yvonne Gonzalez Rogers, who presided over the case, will also require that Apple abandon its anti-steering provisions, in the very least. Still, it’s unlikely Epic and the Coalition for App Fairness will be satisfied with this one.
So, it’s fair to say that Apple sees the writing on the wall here and has decided to give up its fight on this one particular front and abandon a policy that even some of its staunchest supporters thought was flat-out wrong.
It is prima facie wrong that one of the rules is that an app is not allowed to explain the rules.
John Gruber, Daring Fireball
Unfortunately, Apple is also only taking baby steps here, since it’s continuing to limit this exception to its somewhat arbitrary “reader apps” category, which includes apps that “allow a user to access previously purchased content or content subscriptions,” such as magazines, newspapers, books, audio, music, and video. This will, of course, satisfy some of the most egregious scenarios, like Netflix, Spotify, and Amazon, but it’s still going to leave apps like Hey out in the cold.
Naturally, Apple’s press release is also putting the most positive spin possible on this, touting it as a win for developers (which it is). However, it’s also fair to say that it’s a policy that they should have changed years ago — or never really put in place, to begin with.
We have great respect for the Japan Fair Trade Commission and appreciate the work we’ve done together, which will help developers of reader apps make it easier for users to set up and manage their apps and services, while protecting their privacy and maintaining their trust.
Phil Schiller, Apple Fellow
Sadly, it’s also not going to happen overnight. According to Apple, the change won’t go into effect until “early 2022.” Apple will update its guidelines and review process between now and then, so there may still be some hidden catches here.
For instance, Apple notes that it will “help developers of reader apps protect users when they link them to an external website to make purchases,” which implies there may still be some rules and restrictions around how this is actually going to work in practical terms. It’s unclear whether developers will be able to mention actual payment or price in the link or text around it and whether the link will have to go to some specific page.
Still, it’s a big step in the right direction — a change that improves the experience for end-users that will also likely remove much of the antitrust pressure that Apple has been under. Nonetheless, we suspect the devil will be in the details here, and we’ll have to wait until next year to see how this actually pans out.