Apple Again Extends Deadline Requiring Apps Offering Virtual Group Events to Use In-App Purchases

Last fall, Apple changed its App Store rules around in-app purchases for realtime experiences, and the guidelines technically require apps that offer virtual events to more than a single person to use in-app purchases.

apple developer app feature
Apple is not yet enforcing that rule, however, and has once again extended the timeline of when in-app purchases will need to be implemented. Apple has set the new deadline for December 31, 2021, which means that apps offering digital services to groups of people can continue to accept payment methods that do not use in-app purchases and are not subject to Apple's 15 to 30 percent cut through the end of the year.

Last year, to support apps that adapted services from in-person to digital due to the COVID-19 pandemic, we temporarily deferred the requirement to offer paid online group event services (one-to-few and one-to-many realtime services) through in-app purchase in accordance with App Store Review Guideline 3.1.1. As the world continues to recover from the pandemic, we'd like to support the communities that are still providing digital services in place of in-person group events by extending the deadline further to December 31, 2021.

Apple initially planned to begin requiring apps to comply with the in-app purchase rule for group digital events in December 2020, but implemented an extension in November 2020 that would have put the deadline at June 30.

Apple says that it is not going to enforce the rule in order to continue to support communities that are still providing digital services in place of in-person group events.

The App Store rules specifically apply to one-to-a-few or one-to-many events that involve more than two people. Person-to-person experiences between two individuals do not need to use in-app purchases, so tutoring sessions, medical consultations, real estate tours, one-on-one fitness training sessions, and more can be purchased using alternative payment methods.

Many popular apps, such as ClassPass and Airbnb, normally offer real world purchase options that don't need to use in-app purchases, but have been offering virtual experiences during the pandemic. Purchases for real world experiences are not subject to in-app purchases, but purchases for digital events are, so Apple has been wanting to take a cut of sales from those apps.

Airbnb and ClassPass complained, which led to the rule that allows person-to-person experiences to skirt in-app purchase requirements.

Top Rated Comments

alex00100 Avatar
21 weeks ago
An easier rule would be "given us 15-30% of ANYTHING you do on your phone."
Score: 5 Votes (Like | Disagree)
IceStormNG Avatar
21 weeks ago

An easier rule would be "given us 15-30% of ANYTHING you do on your phone."
That's too obvious..
Score: 4 Votes (Like | Disagree)
zorinlynx Avatar
21 weeks ago
If Apple would drop these idiotic requirements, they wouldn't be dealing with so much antitrust fallout right now.

Apple should concentrate on making their payment system as convenient to use as possible, so it's WORTH losing the cut, rather than forbidding developers from using other methods.
Score: 4 Votes (Like | Disagree)
Nuno Lopes Avatar
21 weeks ago

An easier rule would be "given us 15-30% of ANYTHING you do on your phone."
That is the goal. To enforce a revenue share over stuff they don’t own, create, produce or actively sell by simply forcing themselves the only entity with billing ability in town. One to one is just a technicality that can be changed any time by them. Remote classes, video conferencing ... anything served digitally over a communication network they haven’t built wither ... for now. Wait for analogs ... its just a simple step really once you start charging for stuff that you have little to do with.

Basically Apple can charge whatever goes through devices they have built yet do not own. They are the the law maker, the judge and tax maker of what goes through 50% US smarphones/population without owning them ... just by selling a device. That is what they say to the customer that are selling ... look beautiful display and camera buy this .... Yet the after math its like not owning something, getting payed for it, and still collect tax over its use. Not to mention being able to fundamentally remove the competition on whatever they set their eyes on. All tangled up with legal justifications extrapolated from pure casuistic examples in prior art. Its brilliant.
Score: 4 Votes (Like | Disagree)
kmann1983 Avatar
21 weeks ago

If you use the Amazon app on your iPhone Apple doesn't get a 30% cut. For these live events, they shouldn't be getting a cut of that either. They should only get a cut of purchases that can only be used in that app on your phone. If it's a purchase that can be used on a website, in real life, a reading app, etc, let the developers use their own payment method.

For games, I understand using Apple's in-app purchases system, especially if the game is free. Playstation, Nintendo and Microsoft all make developers use their payment systems, and they all charge 30%. You wouldn't be able to give your game away for free if the platforms didn't exist, and they won't exist if they don't make money.

For other apps, maybe change the requirement to be that Apple Pay has to be an option as well, but don't force in-app purchases.
The excuse "but others do it" is not a valid one. It's never been a valid stance in all of history.

Times change and what's expected changes.

The stance falls apart if you ask: Ok, if third-party app stores were allowed or installing binaries (like one does on Mac or Windows) were allowed, would this still be a thing? Probably not, many, if not most, would likely host their own all the way and abandon Apple.

For example, I don't pay Microsoft to sell programs on a Windows machine nor do users pay to allow that for the "privilege".

So, in that case, what does Apple bring to the table? Is it their bandwidth being used for these live events? Their bandwidth for storage of the data for these live events? Their storage for archiving those live events?

If the answer is just.. "their storefront" then, I'm sorry, no... Apple doesn't deserve a very large cut, in my opinion. Not until they offer something substantially more --or-- offer third-party appstores or installable binaries to prove their storefront is what brings the money.

Not gonna lie, when a (very) large company tries to scare people into the idea that if they don't hand over complete control and curation then the entire ecosystem falls apart.. then.. well... I simply don't believe that company, in this case Apple. I've seen that stance far too often.. and every time it's been wrong. Every. Single. Time. Walled gardens don't work for extended periods of time.

But I'm also well aware my opinion is not shared by most so... /shrug
Score: 3 Votes (Like | Disagree)
IceStormNG Avatar
21 weeks ago

Easier, yes, but better? I'm not sure. I can understand getting a cut for apps, books, music, etc. that are stored on Apple servers, and require Apple's internet distribution systems. But why give Apple a cut for other stuff that doesn't even involve Apple (ie virtual currency in games)?
Because that doesn't matter.. it's another way to get money. That's the only thing that counts. And as your App MUST go through the AppStore and play by Apple's rules, you have the option to pay that percentage to apple, or leave the iOS market completely.

They even don't like it if you have a service that can only be booked from outside. Smaller App developers reported that Apple "forced" them to also include IAPs instead of just relying on their website (which they didn't even promoted in the App).
Score: 2 Votes (Like | Disagree)

Top Stories

Tim Cook Feature Yellow

Apple CEO Tim Cook Testifies in Epic Games v. Apple Trial

Friday May 21, 2021 8:48 am PDT by
Today is the one of the last days of the Epic Games v. Apple trial, and Apple CEO Tim Cook has taken the stand to ask questions levied by both Apple and Epic lawyers. Cook's testimony won't be integral to the outcome of the trial, but what he has to say is of interest because this is the first time that he's testified in a legal case, which highlights the serious nature of this dispute....
timcookantitrust

Tim Cook 'Practicing for Hours' Ahead of Epic Games Testimony Expected This Week

Monday May 17, 2021 4:17 am PDT by
So far, Apple CEO Tim Cook has taken a backseat in defending Apple as it faces a significant legal battle with Epic Games regarding the App Store. While the CEO has commented on the platform in the past, for the first time this week, Tim Cook will take center stage in his company's battle with Epic Games. Apple in March submitted its list of executives that will testify during the trial...
cryptocurrency bitcoin

Apple Looking for a Manager With Experience in Cryptocurrency

Wednesday May 26, 2021 8:56 am PDT by
Apple is hiring for a Business Development Manager with experience in alternative payments, including cryptocurrency, according to a recent job listing. In the job listing, spotted by CoinDesk, Apple explained that it is looking for Business Development Manager in alternative payments:The Apple Wallets, Payments, and Commerce (WPC) team is seeking an experienced Business Development Manager...
app store blue banner

App Store Ecosystem Responsible for Estimated $643 Billion in Billings and Sales in 2020, According to Apple-Commissioned Study

Wednesday June 2, 2021 10:00 am PDT by
The App Store ecosystem facilitated an estimated $643 billion in billings and sales in 2020, an increase of 24 percent year-over-year, according to an Apple-commissioned study done by Analysis Group economists. [PDF] The study, "A Global Perspective on the Apple App Store Ecosystem," comes as Apple awaits a decision in its ongoing trial with Epic Games, much of which focused on App Store...
tile amazon sidewalk integration

Apple Says Tile Trackers Sold Poorly in Apple Stores

Friday May 14, 2021 4:53 am PDT by
Earlier last month, Spotify, Tile, and Match (owner of Tinder), testified at an app store antitrust hearing spearheaded by the U.S. Senate. During the hearing, Spotify called Apple's App Store "an abusive power grab," while Tile said Apple uses its platform to "unfairly limit competition for its products." Now, in response to their testimonies, Apple's vice president and chief compliance...
fortnite apple featured

Apple Earned Over $100 Million From Fortnite

Wednesday May 19, 2021 12:02 pm PDT by
Apple collected more than $100 million in revenue from the 30 percent cut that it takes from Fortnite in-app purchases, according to testimony provided by App Store gaming business development head Michael Schmid, who shared the detail in the ongoing Epic v. Apple trial. As noted by Bloomberg, Schmid offered the $100 million figure as a rough estimate, and declined to provide a specific...
fortnite apple logo 2

Judge in Epic vs. Apple Case Floats Potential Compromise

Wednesday May 12, 2021 3:54 pm PDT by
In the ongoing legal battle between Apple and Epic Games, the two companies are this week calling up their expert witnesses to argue their points before Judge Yvonne Gonzalez Rogers, who will make a decision in the case after a three week trial. Expert testimony is not as exciting as some of the leaked App Store documents that were highlighted last week, especially as much of what's being...
app store safe secure

Developer Highlights How Fake Apps Scam Users Via Apple's In-App Purchasing System

Wednesday April 7, 2021 4:59 am PDT by
Apple hosts millions of apps on the App Store, calling the platform a "safe and trusted" place to discover apps. While mainly true, Apple has come under criticism for hosting many different scam apps on the platform, some even raking in millions in revenue. In February, developer Kosta Elefherious highlighted how many of his own apps, including the popular Apple Watch keyboard, FlickType,...
Apple vs Spotify feature2

Spotify Executive Justifies Antitrust Pressure on Apple and Calls for Other App Store Payment Providers

Tuesday June 1, 2021 9:05 am PDT by
Spotify executive Horacio Gutierrez has explained in a wide-reaching interview with The Verge why the company believes Apple is a "ruthless bully" and what it would like to see change. Last month, Gutierrez penned an op-ed in the Wall Street Journal that chastised Apple and some of its business practices. Now, Spotify's head of global affairs and chief legal officer has expanded on the logic ...
parler app

Parler Returns to the App Store With Improved Moderation

Monday May 17, 2021 7:43 am PDT by
The controversial social media app Parler has today returned to the App Store, several months after Apple suspended it for breach of App Store rules. Parler was removed from the App Store in January because Apple said that it failed to take "adequate measures to address the proliferation" of "threats to people's safety." According to the Washington Post, Parler has now implemented a...