Apple's announcement last week introducing App Store Subscriptions has generated a lot of controversy across the web. At issue is Apple's policy requiring publishers to also offer all subscriptions through Apple's In-App purchase system which gives Apple a 30% cut. Meanwhile, publishers are still allowed to sell subscriptions outside of the App Store (and keep 100%) but they can't undercut the App Store price. From the original announcement: While the wording of the original announcement was aimed specifically at content publishers, there has been growing concern that the terms don't allow for "software as a service" (SaaS) apps as well. These are apps such as DropBox and SalesForce that provide specific services to users for recurring subscription fee. Readability for iPad The issue was brought to the headlines yesterday morning when Readability announced that their app had been rejected due to the new subscription terms. Readability offers a subscription service priced at $5 per month which offers the users to view clutter- and ad-free versions of online content for easy reading. They believe they were rejected due to Apple targeting software service apps and not just ones serving up content. DaringFireball's John Gruber, however, interprets this rejection differently, and believes that Readability is simply a publisher model, and thus subject to Apple's new terms: But Readability is not alone in their interpretation. TinyGrab, a screenshot sharing service, announced today that they won't be pursuing their iOS app due to the restrictions surrounding the new subscription system. TinyGrab offers premium subscriptions which gives paying customers additional storage and capabilities. Finally, Marco Arment, the developer of Instapaper, also seems to interpret Apple's new policies as affecting software as a service. He asks if apps that support Evernote, DropBox, Salesforce, LinkedIn, and 37signals will have to be removed for not offering subscriptions as in app purchases. SalesForce, Evernote, Dropbox icons One MacRumors reader also had these questions and emailed Apple CEO Steve Jobs with these same concerns. He wrote: To this, Steve Jobs replied in his typically short and, unfortunately, somewhat vague response: On the surface, our interpretation of this response is that the new in-app subscription rules simply don't apply to Software-as-a-Service. And, if you review the new guidelines and press materials that Apple has released, all the context is specifically related to publishers of content, and there are no references to software services. Based on that interpretation, apps such as DropBox and even TinyGrab may not be subject to the new rules. Readability's rejection, however, shows there are some borderline cases where the line between publisher and service provider is a bit blurry. Hopefully, Apple will provide more clarity on this issue. Article Link: Steve Jobs Email Suggests In-App Subscriptions Don't Apply to 'Software As a Service'?