Apple pressures email app 'Hey' to integrate in-app purchase option [u]
Apple has halted updates for and is threatening to remove new iOS email client Hey because it doesn't offer the ability for customers to purchase subscriptions from within the app.
Credit: Hey
Hey, which launched on Monday, was developed by the creators of Basecamp to be a streamlined email service on both web and mobile. Access is priced at $99 a year, but customers must purchase that subscription outside of the App Store.
The lack of an option to buy a subscription -- which keeps Apple from getting its 30% cut -- is at the heart of the dustup between its developers and Apple, Basecamp co-founder and CTO David Heinemeier Hansson said.
According to Protocol, Apple originally approved version 1.0 of the app but rejected two new versions that contained bug fixes. That has essentially halted Hey's ability to issue updates to its app.
Instead of offering an in-app purchase option, Hey users must sign up for the subscription on the company's website and then log in through the app. That allows Hey to avoid paying Apple the 15 to 30% cut of subscription costs. App Store reviewers told Hey's developers that the app violated section 3.1.1 of Apple's guidelines, which states that developers are required to use Apple's in-app purchase system for digital goods or services.
As Heinemeier Hansson went on to explain, Apple's App Store team also said that they will remove the app unless an in-app purchase option is introduced. He added that Apple doesn't regard Hey as a "Reader" app, which are allowed to skirt the in-app subscription requirements.
According to section 3.1.3 of Apple's guidelines, "Reader" apps allow users to "access previously purchased content or content subscriptions" as long as apps don't persuade or point iOS users toward a purchasing method outside of the App Store. That provision of the guidelines is what allows popular apps like Netflix and Spotify to avoid offering in-app purchases. But although those apps don't point users toward a separate sign-up page, neither does Hey.
Despite the threat of removal, Basecamp's creators have no intention of backing down. Heinemeier Hansson told Protocol that "there is never in a million years a way that I am paying Apple a third of our revenues."
The battle between Hey and Apple comes on the heels of the launch of an official European Commission antitrust probe into Apple's App Store and Apple Pay practices. That formal investigation will take a look at Apple's role as a "gatekeeper" of third-party apps on its platforms while offering potentially competing apps, such as iCloud or Apple Music.
Apple has come under fire in the past for alleged anticompetitive practices. Spotify's CEO Daniel Ek has been an outspoken critic of the company's App Store policies, and even lodged a formal complaint with the EU.
The Spotify CEO appears to have since softened his stance in light of Apple taking steps to "open up" it platforms.
Apple is also facing a big tech investigation in the U.S., with matters of interest ranging from App Store policy to the "Sherlocking" of third-party software features. CEO Tim Cook has been asked to testify on behalf of the company.
Coincidentally, Heinemeier Hansson called attention to Apple's iron fist App Store tactics in testimony to the House Antitrust Committee earlier this year.
The seemingly heavy-handed application of App Store guidelines runs counter to Apple's attempts to brand itself as a friend to all developers. As part of an ongoing public relations campaign, the tech giant this week touted its App Store ecosystem as generating half a trillion dollars in commerce during 2019.
"In a challenging and unsettled time, the App Store provides enduring opportunities for entrepreneurship, health and well-being, education, and job creation, helping people adapt quickly to a changing world," Cook said in an accompanying statement.
Update: Apple in a statement to Protocol said Hey's initial approval was a mistake. There appears to have been some confusion around the client app and its intended audience. Apple allows client apps marketed as business services, like Basecamp, onto the App Store, but but does not allow the same for consumer apps like Hey.
Credit: Hey
Hey, which launched on Monday, was developed by the creators of Basecamp to be a streamlined email service on both web and mobile. Access is priced at $99 a year, but customers must purchase that subscription outside of the App Store.
The lack of an option to buy a subscription -- which keeps Apple from getting its 30% cut -- is at the heart of the dustup between its developers and Apple, Basecamp co-founder and CTO David Heinemeier Hansson said.
Wow. I'm literally stunned. Apple just doubled down on their rejection of HEY's ability to provide bug fixes and new features, unless we submit to their outrageous demand of 15-30% of our revenue. Even worse: We're told that unless we comply, they'll REMOVE THE APP.
-- DHH (@dhh)
According to Protocol, Apple originally approved version 1.0 of the app but rejected two new versions that contained bug fixes. That has essentially halted Hey's ability to issue updates to its app.
Instead of offering an in-app purchase option, Hey users must sign up for the subscription on the company's website and then log in through the app. That allows Hey to avoid paying Apple the 15 to 30% cut of subscription costs. App Store reviewers told Hey's developers that the app violated section 3.1.1 of Apple's guidelines, which states that developers are required to use Apple's in-app purchase system for digital goods or services.
As Heinemeier Hansson went on to explain, Apple's App Store team also said that they will remove the app unless an in-app purchase option is introduced. He added that Apple doesn't regard Hey as a "Reader" app, which are allowed to skirt the in-app subscription requirements.
According to section 3.1.3 of Apple's guidelines, "Reader" apps allow users to "access previously purchased content or content subscriptions" as long as apps don't persuade or point iOS users toward a purchasing method outside of the App Store. That provision of the guidelines is what allows popular apps like Netflix and Spotify to avoid offering in-app purchases. But although those apps don't point users toward a separate sign-up page, neither does Hey.
Despite the threat of removal, Basecamp's creators have no intention of backing down. Heinemeier Hansson told Protocol that "there is never in a million years a way that I am paying Apple a third of our revenues."
The battle between Hey and Apple comes on the heels of the launch of an official European Commission antitrust probe into Apple's App Store and Apple Pay practices. That formal investigation will take a look at Apple's role as a "gatekeeper" of third-party apps on its platforms while offering potentially competing apps, such as iCloud or Apple Music.
Apple has come under fire in the past for alleged anticompetitive practices. Spotify's CEO Daniel Ek has been an outspoken critic of the company's App Store policies, and even lodged a formal complaint with the EU.
The Spotify CEO appears to have since softened his stance in light of Apple taking steps to "open up" it platforms.
Apple is also facing a big tech investigation in the U.S., with matters of interest ranging from App Store policy to the "Sherlocking" of third-party software features. CEO Tim Cook has been asked to testify on behalf of the company.
Coincidentally, Heinemeier Hansson called attention to Apple's iron fist App Store tactics in testimony to the House Antitrust Committee earlier this year.
The seemingly heavy-handed application of App Store guidelines runs counter to Apple's attempts to brand itself as a friend to all developers. As part of an ongoing public relations campaign, the tech giant this week touted its App Store ecosystem as generating half a trillion dollars in commerce during 2019.
"In a challenging and unsettled time, the App Store provides enduring opportunities for entrepreneurship, health and well-being, education, and job creation, helping people adapt quickly to a changing world," Cook said in an accompanying statement.
Update: Apple in a statement to Protocol said Hey's initial approval was a mistake. There appears to have been some confusion around the client app and its intended audience. Apple allows client apps marketed as business services, like Basecamp, onto the App Store, but but does not allow the same for consumer apps like Hey.
Comments
As for Hey specifically, from reading the Verge article about what they are doing With the app, I actually do think Apple is in the wrong here and it should be considered a Reader style app. The subscription isn’t specific to iOS and they aren’t advertising it in iOS, so it is exactly the same as Netflix. It appears to be a new email address as well, so it is even more like a reader app.
The difficulty of equating the App Store to a real store is what kills me with this guy.
Yes I have to wonder why it's a different case to Gmail app? I mean from Apple's perspective it should be treated the same. for customer perspective, well that is another story.
Apple should approve Hey because it does not actually violate any of their rules, just an opiniated judgement call of what a “reader” (passive consumption) app is. Then codify what precisely they’re not allowing, and wait for Hey to bring out a non bug fix update and then remove it for violating the new rule Hey inspired. If Apple can’t codify precisely why Hey is different, leave it be. Should help with the monopoly abuse investigations.
At $99/year for ***EMAIL,*** I expect they may grab as many as 34 consumers a year.
Bottom line: this problem will solve itself.
Apart from Hey's offering, this kerfuffle shows how the App Store is become a relic more and more. This, and the many, many more issues developers face getting their stuff on there is not benefitting developers or customers.
Er … no, because no one bought the iPad because they could get it from Walmart; they chose the iPad and then decided where to buy it. However, if buying a product on the iPad several months later was because of the costly infrastructure that Walmart put in place AND also incurred a cost to Walmart, then yes, Apple should pay Walmart.
But it wasn't, it doesn't, so they don't.
The reason developers make money on the Apple platform is partly due to the fact that Apple has spent, and still spends, billions (yes, billions) to make the environment secure, private and easy for its customers to use. And the reason Apple can afford to do that is because it has a simple rule: if you make money off the platform, you pay for that.
If this company really believes that every penny of the subscription earned is down to them (and I am amazed that anyone would pay $99 a year for something that they can do with built-in spam handling and email filters) then they should prove it: they should remove their app from the store and just host it on Google Play and the Microsoft Store. If what they say is true, then they won't lose a penny in subscriptions because the money he's making has absolutely nothing to do with Apple's work and money Apple puts in to make the platform popular, safe and attractive to the sort of customers who will actually buy a subscription.
And it's odd that his argument is only directed at Apple, even though Google has the exact same fees: 30% of the subs revenue in the first year, dropping to 15% in the second year and subsequent years. I imagine this is because Google is happy to let him circumvent the rules because its no real loss for them: they make money on sifting personal data. Apple does not.
For myself, it's not just the cost but the increased difficulty in implementing and especially supporting purchases that go through the app store. It's so much easier to support customers whose transactions go through my own system than Apple's completely opaque system. This also gives me flexibility to offer discounts, free accounts to VIPs, give someone a free month to make up for some problem they experienced, etc.