This is a segment from The Drop newsletter. To read full editions, subscribe.
Tech giants Epic Games and Apple have been duking it out in court for years now, and Apple was just handed a ruling that’s changed the US App Store’s rules.
A California judge found Apple to be engaging in anticompetitive practices. The ruling takes steps to stop “Apple’s continued attempts to interfere with competition.”
US apps are no longer barred from adding external links, buttons, or other ways to get users to leave the app to “browse NFT collections owned by others.”
Apple won’t stop US App Store apps from adding pathways to external pages, and apps can now encourage users to go to those pages.
The main reason this was a point of contention is because apps downloaded from Apple’s App Store are subject to Apple’s rules, which prioritized in-app purchases and restricted or made it difficult for developers to link to external marketplaces.
In-app purchases got hit with a fee from Apple (up to 30%) on every purchase, which resulted in slimmer margins for developers and/or higher prices for consumers. Now, Apple’s not allowed to slap that “Apple tax” on app purchases made externally (but can still collect up to 30% on in-app purchases).
I previously saw some crypto games getting around Apple’s old rules with strategies like vaguely hinting to users via in-game messages that the “PC version” offers some items not available on the iOS version’s shop. Apps also didn’t link to said versions or tell players directly how to get NFTs to use in their games.
But that’s not a great gaming experience, and it probably confused some players.
Because of the ruling, Apple approved a Spotify update that will let the streaming giant offer more pay transparency and external links for users. Epic said it’s finally bringing Fortnite back to the US iOS App Store this week as well. EU gamers have been able to get it through Epic’s own games store since August, thanks to the EU’s Digital Markets Act.
So, what does this latest ruling mean for crypto?
Apps of all kinds — from games to trading apps, NFT marketplaces and wallets — can now openly link to external pages where users can make purchases without incurring Apple’s fees. It means indie crypto games can be more sustainable and more transparent to users without gray-area phrasing. It also means marketplaces like OpenSea can directly link to the web versions so users can buy NFTs.
Apps using iOS have always been able to offer in-app purchases, and some chose not to in large part because of the profit margins with those fees.
It’ll help smaller developers trying to break even, as well as more established firms looking to boost revenue and see long-term growth.
This ruling could make mobile games an even bigger portion of the blockchain gaming sector. Last year, Game7 Research found mobile games were the most popular platform for crypto game developers, making up roughly 30% of that market.
Making users leave the app still isn’t ideal, but it’s better than what it was before.
The decision’s receiving positive feedback from executives in the crypto gaming space. Mythical Games COO Arron Goolsbey applauded Apple’s changes, “even if they were reluctant to open the door to a wider, more connected future.”
Sam Barberie, Sequence’s head of strategy and partnerships, said it’s “massive” for NFTs and blockchain games.
“Such high fees made it unviable for most Web3 games to target mainstream audiences on the US appstore [sic] but now the friction is gone,” Immutable cofounder Robbie Ferguson wrote on X. “We’ve still got a long way to go before Web3 gaming is truly mass-market but a huge source of friction just got removed.”
Get the news in your inbox. Explore Blockworks newsletters:
