Apple and Google’s New Policies and How the Developers React

The developer policy updates from Apple and Google have indeed created ripples across the tech industry. They open fresh opportunities and bring about challenges at the same time. Likewise, the developer ecosystem is currently manoeuvring through a significantly changed landscape. 

The Developer Policy Updates

Both tech giants’ recent policy reforms are primarily driven by regulations, such as the EU’s Digital Markets Act (DMA).

Apple

The App Store is undergoing a significant shift, announcing updated rules for developers, especially in the United States. This change will enable developers to utilize different payment systems. This is relevant for buying digital products and services.

Developers can guide users to external sites for making purchases. They can also incorporate links to alternative payment options within their apps. Even so, Apple will continue to receive a commission on these transactions. However, it is somewhat lower than typical in-app purchase fees. 

Google

Similarly, Play Store changes, in line with U.S. antitrust decisions and the EU’s DMA, allow sideloading of third-party app stores and permit developers to redirect users to different payment systems.

Moreover, the extension of Play Store developer verification requirements to encompass all Android app installation methods is underway. This policy requires all developers who distribute apps outside Google Play to register with Google, submit a government-issued ID, and pay fees. 

The Benefits

For developers, the above policy changes indeed offer some opportunities, such as increased flexibility and more. 

• Alternative Payment Options and Reduced Commissions

Developers can guide users to different payment methods beyond the primary app stores. It may keep a larger share of revenue than the usual 15-30% commission. For the Play Store, service fees are reduced to 9-20%, where interoperability mandates require platforms to restructure monetization models amid regulatory pressures.

• Alternative App Stores and Sideloading

Developers in the EU can now, for the first time, distribute their iOS applications through third-party app marketplaces or directly from their own websites (Web Distribution). It ends the prolonged app store monopoly. 

• Direct relationships with customers

By directing users to third-party platforms, developers can cultivate closer relationships with their customers. As a result, they can acquire improved user data and possibly enhance profit margins. 

• Enhanced Transparency

Platforms must now offer more comprehensive data and analytical tools to developers and advertisers. It further enables independent verification of advertising effectiveness and application usage statistics.

The Risks 

In addition to greater flexibility, Apple and Google’s developer policy updates also come with complexity. 

• Apple’s Core Technology Fee (CTF)

According to Apple’s updated business conditions in the EU, developers participating in the new system (for alternative payments or distribution) must pay a €0.50 charge for each initial annual install after the first million downloads. Developers, especially those with “freemium” models in which only a small portion of users pay, claim this charge poses a major risk and financial barrier. 

• More complex and uncertain

Managing new technical and regulatory demands across various platforms and areas increases complexity and engineering tasks for development teams.

• Risks of Security and Fraud

Apple especially contends that permitting sideloading and alternative payment systems creates new security threats, such as heightened risks of malware, scams, and fraud, which developers are now required to help manage.

• User Experience is More Fragmented

Applications acquired from various sources may exhibit different policies and features, resulting in a less user-friendly experience for consumers.

• Regulatory Inspection

Apple and Google are under continuous scrutiny by the European Commission for non-compliance, indicating that the policies remain in flux and may change. This unpredictability complicates long-term planning for developer ecosystems.

How Developer Ecosystems React

So, what are the reactions to Apple and Google’s developer policy updates? The developers’ responses are, of course, largely varied. 

Frustrated and Opposed 

Numerous developers, regardless of size, have expressed frustration and resistance. They claim the updated policies, especially Apple’s extra charges and stringent qualifications, continue to centralize authority with the gatekeepers. As a result, it hinders genuine competition, generating significant criticism and even legal disputes or official complaints to regulatory authorities.

Hesitant to change 

Certain developers are wary of adopting new systems due to their complexity, the expense of overseeing new infrastructure, and the possibility of a “riskier, yet less user-friendly” experience, which may result in user discontent.

Adapt and Explore

Other developers are adjusting by examining the potential opportunities. They are assessing alternative payment methods to boost revenue share, exploring direct-to-consumer sales, and reconsidering their overall business and pricing strategies.

Requesting clarity

Developers often report challenges in understanding the unclear or frequently modified guidelines. Those that frequently lead to possible app rejections and delays in the app store approval timeline. 

Creating Unions (or Advocacy)

In certain instances, developers have established unions or advocacy organizations to express their shared concerns and pursue fairer treatment and improved working conditions from Apple and Google.Once again, the developer policy updates by Apple and Google present new challenges and possible opportunities. Society evolves through these cycles of transformation. Consequently, even if new changes emerge, comparable cycles will probably recur in the future.