Wednesday, February 16, 2011

New App Store rules affect any digital goods, not just subscriptions: Apple

As we feared, it looks like Amazon.com's Kindle app will be affected by the changes that were announced by Apple on Tuesday. Although the changes seemed to be about subscriptions, it seems that Apple wants its cut of any goods, including digital, served through an iOS app. Apple has confirmed thatdoes not want a cut of fund on virtual store-value cards like Starbucks' app, however.

An Apple spokeswoman confirmed to Computerworld that the changes will affect Amazon.com's Kindle app. As part of the changes, Amazon must remove the link that allows buyers to exit the app to buy through the browser as well. The same applies to any other such apps and links.

Additionally, any content provider offering goods for sale outside an iOS app, must also provide in-app sales at the same price or less. This means that despite the fact that any in-app sales are hit with a 30 percent charge by Apple, content providers can't pass that cost on to consumers, unless they do so both outside and inside the app.

Will some be leaving the App Store? It appears the first such break has occurred: Rhapsody has already said that the 30 percent Apple wants as its take will be unsustainable for them, and implied it might leave the App Store.

Meanwhile, this is probably just the tip of the iceberg. The Wall Street Journalsays that there is some question if Apple's new policies may lead to antitrust issues.

At the same time, Digital Daily said that existing apps in the App Store have until June 30 to come into compliance with the new policies. This means we will have around 4 months to see how content providers truly react to this new World Order.

It should be an interesting time.

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