Apple's Chokehold on Developers May Have Gone Too Far This Time
The buzz today is all about Apple's change in developer guidelines with the release of in-app subscriptions today for iOS. These guidelines specifically state that developers can no longer sell any content outside of the app. Period. It must be sold via Apple's in-app purchase API which means Apple gets a very large 30% of the cut. The only workaround for this is if the developer or company chooses to implement their own in-app payment option, in which case they would get all the money. However, any content that goes through that option must also be available via Apple's in-app purchase system for the same price or less. Plus, creating a payment system is extremely time consuming.
Major companies are already expressing their frustration over these new guidelines. Rhapsody clearly stated its case today in which the president, Jon Irwin, went as far as to say legal action may be taken against Apple. Wall Street Journal is certain Apple will face antitrust issues. Sony thinks Apple is holding publishers ransom. Pam Horan of the Online Publishers Association -- which represents Time, Bloomberg, National Geographic, Forbes, and more -- said Apple's latest restrictions do not allow the flexibility needed to serve their customers.
Right now the only people that win are the consumers. Thanks to Apple's extremely easy system, purchases can be made within an app with just one click. All the credit card and billing information is stored on the user's iTunes account, so all that is required to make a purchase is a password.
This is about to become a very serious issue very quickly. Mark my words that today's media coverage is only the beginning of a long adventure consisting of publisher frustration over Apple's rising demand for control on iOS. I have stated over and over again that I am an Apple fanboy, but even I think Apple might have gone too far this time.






