Thanks. That makes sense. I guess the question is, where is that line drawn of how they have to “play with others”?
The government is hardly the outside voice of reason. Haha. But I get what you are saying.
The line is drawn where competition begins. If Apple is setting the rules for apps and services in the App Store while also offering their own apps and services in the App Store, you’ll inevitably see situations where the playing field is
not level for apps and services with which Apple directly competes.
Take Apple Music and Spotify, for example, two directly competing services offered at the same price for an individual subscription. When you pay $9.99 for Apple Music as an in-app purchase, Apple gets $9.99, minus credit card processing fees (probably roughly $0.25). Spotify has discontinued signups with IAP, but when you could, you could pay $9.99, at which point Spotify would receive only $7.00 for the first year, which is a substantial enough difference that it places Spotify at a competitive disadvantage. Apple would see $2.99, minus the same ~$0.25 in processing fees. This is a slightly oversimplified picture, but the point stands.
So, enter “reader” apps, a category of apps that have received Apple’s blessing to not use IAP if they so choose. In the App Store Review Guidelines, Apple lists several categories that count as “reader” apps: “magazines, newspapers, books, audio, music, video, access to professional databases, VoIP, cloud storage, and approved services such as classroom management apps.” You’ll notice that basically all of these categories are ones in which Apple directly competes, and the last one gives them wiggle room to arbitrarily decide whether or not an app is an “approved service.” Problem is, if an app chooses not to use IAP, they are forbidden from even mentioning, let alone linking to or offering in the app, any other options to create an account — they
must be sign-in-only.
That introduces a phenomenon known as signup friction, where new users get frustrated with too much work and/or confusion when trying to create an account and just take their business elsewhere, which places these “reader” apps at a competitive disadvantage. We could go down that rabbit hole for hours, really, but at the end of the day, the winner is Apple and the loser is its users.