Apple's App Store Policies Are Bad, But Its Interpretation and Enforcement Are Worse

Earlier this week, Apple told Basecamp, the company that makes the brand new email app called Hey, that it cannot distribute its app on the iPhone unless it makes it possible for users to sign up via Apple's own prescribed methods -- which gives Apple a 30 percent cut. Apple told Basecamp that by avoiding giving an option in its iOS app to sign up and support in-app purchases, it was violating Apple's App Store policy, 3.1.1, which says: If you want to unlock features or functionality within your app, (by way of example: subscriptions, in-game currencies, game levels, access to premium content, or unlocking a full version), you must use in-app purchase. Apps may not use their own mechanisms to unlock content or functionality, such as license keys, augmented reality markers, QR codes, etc. Apps and their metadata may not include buttons, external links, or other calls to action that direct customers to purchasing mechanisms other than in-app purchase.

Dieter Bohn, writing for The Verge: The key thing to know is that the text of this policy is not actually the policy. Or rather, as with any law, the text is only one of the things you need to understand. You also need to know how it is enforced and how the enforcers interpret that text. It should not surprise you to know that Apple's interpretation of its text often seems capricious at best and at worst seems like it's motivated by self-dealing. And the enforcement consequently often seems unfair.

The rule states that if you want to sell digital goods, you have to use Apple's payment system. Except that's not how 3.1.1 has been interpreted to date. It has been interpreted as allowing people to access services they paid for elsewhere on their iOS devices, but not allowing those apps to try to get around the Apple payment rules when people sign up on those devices. That's convoluted, but that interpretation is what keeps Netflix from having an account sign-up in its app. It's the policy that has enraged Spotify and keeps you from buying Kindle books on your iPhone without jumping through a million weird Safari hoops. That was already a very bad rule, if you ask me. Now, with this email app, Apple is apparently changing its interpretation to be more strict.

David Pierce, in an update to his news report about Hey-Apple debacle: Apple told me that its actual mistake was approving the app in the first place, when it didn't conform to its guidelines. Apple allows these kinds of client apps -- where you can't sign up, only sign in -- for business services but not consumer products. That's why Basecamp, which companies typically pay for, is allowed on the App Store when Hey, which users pay for, isn't. One other distinction: Apple allows "Reader" apps -- things like Netflix and Kindle and Dropbox, where you're using the app to access existing subscriptions -- as long as they don't offer a way to sign up. But email, messaging, etc. don't count as Reader apps.

John Gruber, writing at DaringFireball: The lone instance of "consumer" refers to the "Consumer Health Records API". The price that Basecamp pays for not supporting in-app purchase in their iOS app is that they lose whatever number of users would have signed up in-app but won't sign up out-of-app. That's competition. Again, putting aside arguments that Apple should allow apps to use their own payment systems in apps, or be able to link to a website for sign up, or at the very least just tell users how to sign up -- the makers of an app should be able to say "OK, we won't even tell users how to sign up within our app; our app is only for existing customers and we'll obtain all of them outside the app." [...]

Second, how could such a distinction be made in writing? There are some apps that are definitely "business services" and some that are definitely "consumer products" (games for example), but to say that the area in between encompasses many shades of gray is an understatement. The entire mobile era of computing -- an era which Apple itself has inarguably largely defined -- is about the obliteration of distinct lines between business and consumer products. [...] At some level there's a clear distinction here -- Netflix and Kindle are clearly consumption services. But Dropbox? Dropbox is a lot closer to an email or messaging service like Hey than it is to Netflix or Kindle. The stuff in my Dropbox account is every bit as personal as the stuff in my email account. When you put Dropbox in the same bucket with Netflix and Amazon Kindle, it seems to me like the distinction is not so much between what is and isn't a "reader" app or what is or isn't a "business" app, but between companies which are too big for Apple to push around and those they can.

Read more of this story at Slashdot.