Apple App Store: Difference between revisions

'''[[Apple]]''' uses a range of technical measures to maintain control over the App Store ecosystem. While Apple cites security and user-friendliness as the reasoning behind these measures, they often create roadblocks for users as well as app developers. Some of the methods Apple uses to control its ecosystem hinders lawmakers' ability to advocate for the rights of consumers and businesses within Apple's ecosystem and prevents apps from being as useful and free as their customers expect.

Although there are supported iOS application installation source alternatives such as [https://altstore.io/ Altstore], they are not commonly used or known, which gives Apple a practical monopoly over iOS users and iOS app developers.

Apple has made claims that they are unaware about the profitability of the App Store<ref>{{Cite web |last=Lovejoy |first=Ben |date=17 Apr 2024 |title=Schiller doesn’t know whether the App Store is profitable; there are no minutes of meetings |url=https://9to5mac.com/2024/04/17/app-store-is-profitable-apple-notes/ |url-status=live |archive-url=https://archive.ph/AinvZ |archive-date=7 Jan 2026 |access-date=16 Mar 2025 |website=[[9to5Mac]]}}</ref><ref>{{Cite web |last=Lovejoy |first=Ben |date=17 Jan 2025 |title=Apple denies App Store profit margin is 75% – claims to have no clue |url=https://9to5mac.com/2025/01/17/apple-denies-app-store-profit-margin-is-75-claims-to-have-no-clue/ |url-status=live |archive-url=https://archive.ph/Df7hl |archive-date=7 Jan 2026 |access-date=16 Mar 2025 |website=[[9t05Mac]]}}</ref> but takes fees of up to 30% on digital product sales and subscriptions,<ref>{{Cite web |last=Mehta |first=Tushar |date=2025-05-06 |title=Apple cuts App Store fees, but experts urge caution against new U.S. pricing guidelines |url=https://www.digitaltrends.com/phones/what-experts-say-about-apple-app-store-pricing-changes/ |access-date=2026-02-20 |website=digitaltrends}}</ref> ranging from game currency to supporting content creators<ref name="patreon">{{Cite web |last=Roth |first=Emma |date=12 Aug 2024 |title=Patreon: adding Apple’s 30 percent tax is the price of staying in the App Store |url=https://www.theverge.com/2024/8/12/24218629/patreon-membership-ios-30-percent-apple-tax |url-status=live |archive-url=https://archive.ph/Vi9cV |archive-date=13 Nov 2024 |access-date=16 Mar 2025 |website=[[The Verge]]}}</ref> to booking a Zoom call with a local business.<ref name="facebook">{{Cite web |last=Paul |first=Katie |last2=Nellis |first2=Stephen |date=28 Aug 2020 |title=Exclusive: Facebook says Apple rejected its attempt to tell users about App Store fees |url=https://www.reuters.com/article/us-facebook-apple-exclusive/exclusive-facebook-says-apple-rejected-its-attempt-to-tell-users-about-app-store-fees-idUSKBN25O042/ |url-status=live |archive-url=https://archive.ph/9CJDN |archive-date=7 Jan 2026 |access-date=16 Mar 2025 |website=[[Reuters]]}}</ref> Some argue that these fees hinder iOS app developers from innovating because this money cannot be used to further improve their applications.{{Citation needed}} There are groups in support of developers who are experiencing difficulties in continuing development due to Apple (and [[Google]]'s) fees of between 15% and 30% of all revenue. These groups deny the notion that Apple and Google require the money generated by the app more than the developer.{{Citation needed}} These fees also push app developers to increase prices to maximize profits, which increases the prices for end users.

Because of this, several governments including South Korea,<ref>{{Cite web |date=8 Mar 2022 |title=South Korea approves rules on app store law targeting Apple, Google |url=https://www.reuters.com/technology/skorea-approves-rules-app-store-law-targeting-apple-google-2022-03-08/ |url-status=live |archive-url=https://archive.ph/q1VQW |archive-date=11 Jan 2023 |access-date=16 Mar 2025 |website=[[Reuters]]}}</ref> Japan,<ref>{{Cite web |last=Sharwood |first=Simon |date=13 Jun 2024 |title=Japan forces Apple and Google to allow third-party app stores and payments |url=https://www.theregister.com/2024/06/13/japan_smartphone_software_law/ |url-status=live |archive-url=https://archive.ph/Jj9BI |archive-date=13 Jun 2024 |access-date=16 Mar 2025 |website=[[The Register]]}}</ref> the European Union,<ref>[[wikipedia:Digital Markets Act|Digital Markets Act]]</ref> the United Kingdom,<ref>{{Cite web |last=Competition and Markets Authority |date=4 Mar 2021 |title=Investigation into Apple AppStore |url=https://www.gov.uk/cma-cases/investigation-into-apple-appstore |url-status=live |archive-url=https://archive.ph/uZ7A5 |archive-date=7 Jan 2026 |access-date=16 Mar 2025 |website=[[gov.uk]]}}</ref> Australia,<ref>{{Cite web |date=28 Apr 2021 |title=Dominance of Apple and Google's app stores impacting competition and consumers |url=https://www.accc.gov.au/media-release/dominance-of-apple-and-googles-app-stores-impacting-competition-and-consumers |url-status=live |archive-url=https://archive.ph/Bw3gv |archive-date=7 Jan 2026 |access-date=16 Mar 2025 |website=[[ACCC]]}}</ref> as well as the US and a handful of US States<ref>[[wikipedia:Open App Markets Act|Open App Markets Act]]</ref><ref>{{Cite web |date=20 Nov 2024 |title=S.5364 - App Store Accountability Act |url=https://www.congress.gov/bill/118th-congress/senate-bill/5364/text/is |url-status=live |archive-url=https://archive.ph/7yPxE |archive-date=7 Jan 2026 |access-date=16 Mar 2025 |website=[[congress.gov]]}}</ref><ref name="doj">{{Cite web |last=Balsamo |first=Mike |last2=Liedtke |first2=Mike |last3=Whitehurst |first3=Lindsay |last4=Bajak |first4=Frank |date=21 Mar 2024 |title=Justice Department sues Apple, alleging it illegally monopolized the smartphone market |url=https://apnews.com/article/apple-antitrust-monopoly-app-store-justice-department-822d7e8f5cf53a2636795fcc33ee1fc3 |url-status=live |archive-url=https://archive.ph/BB4Zn |archive-date=21 Mar 2024 |access-date=16 Mar 2025 |website=[[APNews]]}}</ref><ref>{{Cite web |date=19 Feb 2021 |title=It’s time to free ourselves from ‘Big Tech’ monopoly |url=https://azcapitoltimes.com/news/2021/02/19/its-time-to-free-ourselves-from-big-tech-monopoly/ |url-status=live |archive-url=https://archive.ph/bLDwu |archive-date=23 Feb 2021 |access-date=16 Mar 2025 |website=[[Arizona Capitol Times]]}}</ref> have opened investigations into anti-competitive practices as well as have considered or passed legislation to require "gatekeeper platforms" such as Apple to be more reasonable with third-party developers.

In response to such legislative measures, Apple has instituted geo-blocking operating system functionality based on physical location,<ref>{{Cite web |title=Eligibility |url=https://theapplewiki.com/wiki/Eligibility |url-status=live |archive-url=https://archive.ph/Df7hl |archive-date=7 Jan 2026 |access-date=16 Mar 2025 |website=[[The Apple Wiki]]}}</ref> misrepresenting/overstating risks, and using careful wording with commonly understood terms to describe unreasonably difficult-to-use systems.{{Citation needed}}

*'''[[wikipedia:Digital Markets Act|Digital Markets Act]]''': The European Union's recent regulations targeted at large "Big Tech" companies, classified as "Gatekeepers," and aimed at creating a more fair level of competition in digital markets, particularly for small or emerging companies.

Apple has been collecting users' credit card numbers since launching the iTunes Store in 2004. The launch of the App Store in 2008, followed by the introduction of in-app purchases (IAPs) in 2009, allowed iPhone app developers to sell app features to users. The IAP system is provided as a developer framework named [https://developer.apple.com/storekit/ StoreKit]. Apps and their in-app purchases are managed through a dashboard named [https://developer.apple.com/app-store-connect/ App Store Connect]. App sales have eclipsed iTunes Store sales and are now a primary focus of Apple's Media Services division.

In August 2020, in response to the COVID-19 pandemic, Facebook introduced the ability for small businesses to accept an entrance fee for events. Previously, Facebook would only serve as a way to RSVP for an event; the organizer had to use a third-party event ticketing system to collect fees. The company pledged not to collect any fee on event sales "until 2023."<ref>{{Cite web |date=14 Aug 2020 |title=Paid Online Events for Small Business Recovery |url=https://about.fb.com/news/2020/08/paid-online-events/ |url-status=live |archive-url=https://archive.ph/7X7KH |archive-date=6 Sep 2020 |access-date=16 Mar 2025 |website=[[Meta]]}}</ref>

Apple, however, requiring the feature to use an in-app purchases system. This introduced Apple's 30% fee. Because this increased the cost for end users and was not a fee imposed by the event holders, it was initially displayed as a line item upon check out. Apple argued that this disclosure was "irrelevant."<ref name="facebook" /> In the end, Facebook was allowed display the fee, but ''without'' stating that it was an App Store fee.