Apple’s revised rules imposed additional restrictions on NFT-unlocked features in the App Store and made it necessary for applications to use Apple’s payment system to buy “boosts” for social network postings. Tech giant updated its App Store Review Guidelines and added new wording about NFTs. NFTs can exist inside apps just on App Store, but they won’t be able to access extra features or content.

What are Apple’s Revised Rules?

The Apple’s revised rules specify that apps will be permitted to allow customers to examine their NFTs as long as their ownership don’t unlock features and functionality inside the app. Apps may also enable users to view NFT collections that belong to other people. But once more, the restriction is that the applications cannot include any buttons, links, or other calls to action that send users to purchasing options other than in-app purchases.

The iPhone manufacturer expressly advises against any NFT holders being able to “unlock features or functionality inside the app, “which would have acted as an indirect method of getting around its payment rule. Apple levies a standard 30% tax on in-app purchases for the uninitiated.

Additionally, Apple updated the App Store’s 3.1.5(iii) regulation to include bitcoin exchanges. “Apps may assist cryptocurrency transactions or transmissions on a recognized exchange. They are made available only in nations or areas where the app has the licenses and authorization to operate a cryptocurrency exchange.

How does this update affect NFTs?

NFTs acquired through Apple’s in-app purchases may be utilized for token-gated functionality in accordance with the company’s long-standing policy governing the paid unlocking of digital products and services.

This could discourage app developers from enabling NFT in-app purchases. However, one of NFTs’ key applications is their capacity to open content that has been token-gated. Examples of NFTs granting holders unique access to numerous communication channels, products, and other benefits are Moonbirds NFTs and Bored Ape Yacht Club NFTs.

Additionally, developers are forbidden to provide external links, buttons, or any action that might tell consumers how to buy NFTs on websites other than the App Store. This is because the App Store encourages users to purchase goods within applications.

Because they specify what developers may and cannot submit to the App Store, the App Store Review Guidelines are crucial. Such rules may be broken, leading to app rejection or removal.

Insiders in the industry pointed out that these modifications would substantially impact just how web3-dependent apps function within the Apple ecosystem. It may have been possible to utilize NFTs in the past to avoid paying Apple’s App Store royalties while still serving as a token or a key to provide consumers access to functionality, but that is no longer allowed.

Notably, Meta has begun releasing tools that allow users to display their NFTs on Facebook and Instagram. The business also wants to launch an online store where artists may sell their digital works. However, if the market is made accessible on iOS, Apple could be required to pay App Store charges due to this move.

Given that Apple reportedly intended to take a sizable part of NFT sales, the most recent update reiterating the conditions for in-app purchases appears reasonable. Tim Sweeney, CEO of Epic Games and a backer of cryptocurrencies, expressed disappointment in the 30% NFT charge reported a month ago and demanded that Apple “be stopped” for killing another young technology that may compete for its grotesquely expensive in-app payment business.

What is an NFT?

A digital asset, referred to as an NFT, represents a real-world item, such as artwork, music, in-game goods, or films. They are regularly purchased and traded online in exchange for cryptocurrencies, and they are typically encoded using the same software as many other cryptos.

NFTs have been there since 2014, but they are now becoming well-known since they are a more common means to acquire and trade digital art. As per reports, since November 2017, $174 million have been spent on NFTs.

Crypto too affected

The company also violates bitcoin transfer laws because current legislation requires them to maintain required licenses. You may permit them to perform a beneficial cryptocurrency change in most jurisdictions where they operate. Now that it possesses the authority, Apple can ban any cryptocurrency exchange from a certain software store if it finds the program inappropriate for the region.

Social Media to now use only Apple’s Payment Method

Due to the new App Store guidelines, marketers can no longer utilize in-app transactions to manage or purchase campaigns across various media types, including TV, apps, and outdoor advertising. However, to buy Boost to social media postings, users must use Apple’s in-app purchase system; this rule only applies to applications that provide in-app capabilities for post promotion. This implies that Apple will retain a portion of such sales, which can lead to higher platform-wide escalation fees. Companies that provide in-app boosts, such as Meta, TikTok, and Tinder, may be impacted by this.

Additional changes by Apple

• Present-day ideas like “violent wars, terrorist assaults, and pandemics” have been added by Apple to the Offensive Content area.
• A “hookup” app or applications that “may include pornography or be used to assist prostitution and human trafficking and exploitation” are also being added by Apple to the Offensive Content area.
• The business forbids applications from using unlicensed music from Apple Music or iTunes as a game’s soundtrack or background music for an image or video collage.
• Apple’s support framework is required for smart home apps that adhere to the Matter IoT standards to send out pings.
• To evaluate account-based features, developers must provide App Store reviewers complete access via an ongoing demo account and otherwise demo mode.

Conclusion

Apple has had to lower its App Store costs over time and accept third-party payment methods for in-app payments in many international locations. With these new guidelines, the business has added more possible ways to make money via the App Store. However, Apple’s revised rules have also returned concerns about Apple’s anti-competitive policies and strict regulation of how applications conduct their operations on the App Store.