[HN Gopher] Update on StoreKit External Entitlement for dating apps
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Update on StoreKit External Entitlement for dating apps
 
Author : tech234a
Score  : 42 points
Date   : 2022-03-30 20:38 UTC (2 hours ago)
 
web link (developer.apple.com)
w3m dump (developer.apple.com)
 
| spideymans wrote:
| Regardless of whatever good intent regulators have for "freedom"
| or whatever, I feel like these efforts will just result in
| predatory developers having more freedom to prey on their users,
| and ultimately a worse experience for end users. These developers
| aren't righteous actors; they're just businesses, like any other,
| looking to extract as much money from their users.
| 
| Ideally governments, and not Apple, would be regulating away this
| predatory behaviour, but I don't view that as a realistic
| prospect. Governments have never been great at regulating away
| anti-consumer behaviour.
 
  | the_gipsy wrote:
  | Apple is also a business and therefore preys on their customers
  | behind a veil of protectionism.
 
    | spideymans wrote:
    | I just want myself and consumers as a whole to be protected
    | from predatory developers.
    | 
    | Regarding the regulatory changes, I'd be happy with one of
    | two things:
    | 
    | A) Governments impose restrictions on third party developers
    | that are largely similar to the consumer protection standards
    | that Apple has imposed on developers, while opening up
    | alternative payment platforms.
    | 
    | B) Governments impose restrictions on Apple to prevent Apple
    | from preying on their customers.
    | 
    | However, governments are going down the path of removing
    | whatever protections the App Store provided consumers,
    | without replacing those protections with any other pro-
    | consumer regulation. This is the absolute worst case scenario
    | for me. We've seen time and time again how developers will
    | prey on their users, particularly with subscriptions.
 
  | oh_sigh wrote:
  | What kind of predatory behavior do you predict that would
  | exist, but wouldn't get the app banned from the app store?
 
    | spideymans wrote:
    | If software developers are free to distribute outside of
    | controlled app stores, free from any external vetting, we'd
    | see the exact same predatory behaviour we see in the broader
    | software industry. Hard-to-cancel subscriptions and
    | misleading free trial scams would be two big examples. Dating
    | app publishers haven't made any secret of their predatory
    | desire to make mobile subscription cancellations more
    | difficult, to extract greater revenue from users, for example
    | [0]
    | 
    | However, the "attack surface" would be much bigger, given
    | that consumers spend far more time on their smartphones than
    | on PCs.
    | 
    | 0: https://nypost.com/2019/11/06/tinder-owners-stock-tumbles-
    | af...
 
  | alimov wrote:
  | I had a similar feeling. This isnt the people of x country
  | suing Apple to allow external payment systems, this is
  | businesses that make $1mil (I think) or more per year(?) via
  | the AppStore... just business interests being paraded around as
  | freedoms
 
  | cmdli wrote:
  | Ultimately, this is about freedom for tech companies, not
  | users. Users will have to use whatever the tech companies give
  | them, and tech companies are always going to do things that
  | benefit themselves the most.
  | 
  | I wouldn't be surprised if users are simply forced to use some
  | external service that has a much worse user experience and
  | ultimately the consumer suffers.
 
| rhizome wrote:
| _" As we have previously said, we disagree with the ACM's
| original order and are appealing it."_
| 
| Oh nothing, just some company interfering with a nation's
| democratically enabled oversight and consumer protection laws and
| policies.
 
  | mschuster91 wrote:
  | That's like literally why courts exist - to judge issues people
  | as well as companies have with laws and executive orders based
  | on these laws.
 
  | withinboredom wrote:
  | Not to mention: choice.
  | 
  | Most of my friends here in the Netherlands don't have a credit
  | card. Instead they have Maestro (a debit card -- aka Pin --
  | with a bank account number on it instead of a credit card
  | number). If you want to sell things online in the Netherlands,
  | iDeal (a payment system) or go home.
 
    | bnt wrote:
    | And you're ok with that? An entire nation, single way of
    | paying?
 
      | sbierwagen wrote:
      | Some countries are small. The Netherlands has a population
      | of 17 million. About the size of Michigan and Arizona
      | combined.
 
        | withinboredom wrote:
        | It's size and population is really similar to the city of
        | L.A. and outskirts IIrC.
 
      | withinboredom wrote:
      | Ist that similar to the US? You basically only have credit
      | cards there. Even debit cards run on the same network these
      | days.
 
  | oh_sigh wrote:
  | Interfering by...having an opinion and following the law even
  | though they don't like it? That's a bizarre standard for
  | interference. I guess the ideal democracy is the DPRK, where
  | 100% of people vote for and support the same Glorious Leader.
 
| silvestrov wrote:
| > must limit its use to the app in the Netherlands storefront
| 
| Apple has still not learnt the lesson. EU will see this as
| another provocation by Apple and the US is going the same way.
| 
| Governments are losing patience with Apple.
 
  | gizmodo59 wrote:
  | I will never subscribe to services for the most part if they
  | don't provide a way via Apple. I'm sorry but I don't want to
  | email, call someone, answer hundred questions of why I want to
  | unsubscribe etc. I want a single click unsubscribe with no
  | questions asked. A very handful of companies do this. If they
  | earn my trust then I will, until then I prefer to do it via
  | Apple.
 
    | [deleted]
 
    | hallway_monitor wrote:
    | PayPal has been doing this for years. In fact just last week
    | I unsubscribed from something with one click on the PayPal
    | site.
 
      | jbverschoor wrote:
      | Yeah but then your account gets frozen for no reason
 
    | nicoburns wrote:
    | Apple could almost certainly enforce apps offering
    | unsubscribe functionality though a standard interface without
    | forcing them to use their payment processing.
 
      | spideymans wrote:
      | That's only true so long as Apple can maintain their App
      | Store monopoly.
 
    | mmastrac wrote:
    | Charging back a single bad actor doesn't get your
    | Apple/Steam/Google account banned, though.
 
| agluszak wrote:
| > As we have previously said, we disagree with the ACM's original
| order and are appealing it.
| 
| "As we have previously said, we don't want to give our users any
| freedom of choice and we won't give away a single penny from our
| monopoly"
 
  | viro wrote:
  | Apple's iap system is anti-dark pattern and because of that
  | pro-consumer.
 
  | alimov wrote:
  | Are you an iOS / iPasOS user by chance? If you are and you
  | continue to use these products would you mind explaining why
  | you are staying with Apple products vs switching to Android or
  | any other alternative that might meet your needs?
  | 
  | If you are not someone that owns and uses an iOS / iPadOS
  | device then I was hoping you might explain why this is
  | troubling you so much.
 
    | t3rabytes wrote:
    | I'm more or less tied to the Apple ecosystem because all of
    | my family and friends use iOS (I'm in the US), which means
    | breaking out of that bubble and being the person turning the
    | group chats green (or saying "can we move to
    | telegram/WhatsApp/signal instead?") or saying "sorry, I can't
    | FaceTime. Duo instead?" is not worth the bullshit that comes
    | along with it. The stickiness factor of these services is far
    | greater than zero.
 
  | n8cpdx wrote:
  | Have you ever actually met or heard of a user (outside of
  | software engineers on hacker news) that cares about this?
  | 
  | I'd think the last 20+ years of the evolution of the internet
  | would be clear enough evidence that:
  | 
  | a) users don't want choice about these kinds of things.
  | 
  | b) even when users do get these kinds of choices, they either
  | can't be trusted to choose in their best interest (e.g.
  | millions of people chose to install malware in the past 20
  | years) OR
  | 
  | c) bad actors will learn to trick users into making the choices
  | they want (e.g. Amazon changing button colors to trick people
  | into doing things they don't want to do)
  | 
  | IMO trying to frame this as about "user choice" is
  | disingenuous.
  | 
  | There are benefits to not allowing choice in some case - I
  | don't know if you've ever had to call a company to cancel a
  | subscription you've signed up for online, but that doesn't
  | happen to iOS IAP users.
 
    | striking wrote:
    | When have users been allowed to choose, in the "last 20+
    | years of the evolution of the internet"?
    | 
    | I think if you allowed users to choose between xx% markup and
    | being able to cancel subscriptions from a centralized place,
    | there would be takers of both approaches.
 
      | mrmanner wrote:
      | > I think if you allowed users to choose between xx% markup
      | and being able to cancel subscriptions from a centralized
      | place, there would be takers of both approaches.
      | 
      | Many people choose Android phones, which kind of proves
      | your point :)
 
      | viro wrote:
      | Every piece of dark pattern research kinda disagrees with
      | you.
 
    | silvestrov wrote:
    | Users do care: Apple does not support the by far most popular
    | payment card that people use (like 99% of cc payments).
    | 
    | We only use Mastercard/VISA for travel, not for domestic
    | payments.
 
      | ben_w wrote:
      | The way you're phrasing that makes me think that you think
      | that all Apple users are American. Was that your intention?
 
    | tedivm wrote:
    | The fact that it's _hidden_ and that Apple causes problems
    | for companies that expose how big the fee is makes it
    | extremely consumer unfriendly.
    | 
    | Do most users care or regularly discuss it? Probably not.
    | Would they be happier paying 30% less for their apps though?
    | Quite likely.
    | 
    | Apple is also explicitly reviewing the payment providers
    | involved in this. There's no reason to choose between "only
    | apple" or "users will install malware". There is a huge
    | middle ground here.
 
      | jbverschoor wrote:
      | We don't show ATM transaction fees either.
      | 
      | We don't show creditcard fees either.
      | 
      | In the Netherlands, companies are required to advertise
      | all-in prices (VAT etc. etc.)
      | 
      | Also, the whole lawsuit was not against the 30% appletax.
      | It was about "freedom of payment provider". Ofcourse the
      | real reason is the 30% commission, but that doesn't hold up
      | in court.
 
      | ben_w wrote:
      | > Would they be happier paying 30% less for their apps
      | though? Quite likely.
      | 
      | Indeed, but that's almost certainly not going to be the
      | consequential result of whatever happens to the App Store.
      | 
      | The businesses might make 30% more, in their best case.
      | 
      | Worst case, Apple is ordered to split up in a way that
      | means development of iOS has to be funded independently of
      | device sales, and also that there App Store is no longer
      | allowed to be the unique store for iOS sales, in which case
      | developers might find that each of the frameworks they rely
      | on from ARKit to WidgetKit now has a licence fee, or end
      | users of iOS may find they have to pay for upgrades instead
      | of getting them free.
      | 
      | It's possible that the economic rent Apple currently
      | extracts from the App Store will end up somewhere more
      | economically useful, _but not guaranteed_ for the same
      | reasons mergers can reduce waste -- replication is
      | necessarily redundant, even though it's also necessary for
      | the exact competition that would naturally minimise
      | economic rent extraction.
      | 
      | (That said, I don't think any of this is why basically all
      | governments are going after Big Tech right now. I think
      | that's happening because Big Tech is scaring a lot of
      | governments by being too big, and in the case of everyone
      | outside the USA, too beholden to Washington -- as I've said
      | before on the site, it is _ridiculous_ that I, a British
      | national living in Berlin, have to report to the US federal
      | government the use of encryption in the apps I write, while
      | working for German businesses who sell the apps to other
      | German business).
 
        | jbverschoor wrote:
        | > Indeed, but that's almost certainly not going to be the
        | consequential result of whatever happens to the App
        | Store.
        | 
        | It is 100% gonna be 27% instead of 3%. So a potential
        | saving for the consumer of 3%. No thank you!
 
      | toomuchtodo wrote:
      | Europe used regulation to cram down interchange fees [1].
      | The US could (and should) do the same, again, with
      | regulation. Users shouldn't have to care (just as they
      | shouldn't have to understand the intricacies of core
      | financial infra in their country), and Big Tech shouldn't
      | be able to use monopoly power to take such a large cut.
      | 
      | And lets not mince words: Apple in this case (and Google in
      | theirs with their mobile ecosystem) is acting as a payment
      | processor, and that function should be regulated as such.
      | If that margin, once regulated down, is insufficient to
      | operate an app store (hah), charge a flat fee per app to be
      | listed and made available to customers. Shopify costs
      | $30-300/month (depending on plan), which sounds like
      | reasonable cost segmentation to adopt for providing a
      | mobile storefront/app in their app store.
      | 
      | [1] https://ec.europa.eu/commission/presscorner/detail/lt/I
      | P_15_...
      | 
      | (I'm aware this post is Netherlands specific; I'm speaking
      | in broad strokes)
 
      | atultw wrote:
      | When apple cut the commission from 30% to 15% for small
      | devs, most app developers didn't lower their prices. The
      | savings went to developers. I think it will be similar here
 
        | dspillett wrote:
        | Or if the result is a proliferation of alternative
        | payment processors because a ruling makes that possible,
        | we'll see a proliferation of payment processors that
        | charge 30% by some combination of means. It seems to be a
        | value that the market will bare.
 
        | jbverschoor wrote:
        | 27%.. The 3% is for payment processing, which now has to
        | be paid somewhere else (actually in the Netherlands you
        | can pay by direct debit, which is a fixed fee of only a
        | few cents).
 
    | car_analogy wrote:
    | > There are benefits to not allowing choice in some case - I
    | don't know if you've ever had to call a company to cancel a
    | subscription you've signed up for online, but that doesn't
    | happen to iOS IAP users.
    | 
    | We already have a mechanism to restrict choice - regulation.
    | Turning to corporations to safeguard consumer rights will end
    | in tears, especially if used as an excuse to curtail user
    | freedom.
    | 
    | > Have you ever actually met or heard of a user [..] that
    | cares about this?
    | 
    | Ordinary people don't care about a lot of things they
    | _should_ care about - there are only so many hours in the day
    | to learn about issues and acquire the necessary knowledge to
    | form an opinion. If experts in the relevant fields don 't
    | care _for_ them, the only other ones are those that stand to
    | profit.
    | 
    | I bet it would be mostly mechanics speaking up if auto
    | manufacturers started requiring only "licensed" brake pads or
    | blinker fluid be used. Does that mean the practice isn't car-
    | owner-hostile?
 
      | viro wrote:
      | It doesn't help that most devs are actively user-hostile.
      | So yea I would rather trust Apple than some random dev that
      | wants to make it as hard as possible to cancel that 3-day
      | trial he just gave me. then charges $9.99 a week .... I'm
      | looking at you plink.
 
        | [deleted]
 
        | dspillett wrote:
        | _> than some random dev that wants to make it as hard as
        | possible to cancel that 3-day trial_
        | 
        | That is not a dev thing. At least not a _good dev_ thing.
        | That is a shady business person thing, possibly holding
        | devs to ransom with "I know you don 't like it, you can
        | always leave if you dislike it enough and I'll get
        | someone else to implement".
        | 
        | Of course it is possible to be both a dev _and_ a shady
        | business person, but away from one-man-band entrepreneurs
        | people don 't usually have the desire not the time to
        | excel at both.
 
        | spideymans wrote:
        | This is largely just a semantic argument. There are
        | developers that are individuals (eg, you and me), and
        | developers that are businesses (eg, EA, or Match Group).
        | Developers that are businesses can be (and frequently
        | are) predatory, just as businesses are frequently
        | predatory.
        | 
        | Keep in mind that the overwhelming majority of software
        | that people interact with is coming from developers that
        | are businesses.
 
    | m12k wrote:
    | Most consumers have no idea what profit margins are. They
    | don't know or understand how the one chosen payment method
    | that Apple provides takes a 30% cut, or how that means that
    | any service with less than 30% profit margin cannot be sold
    | to them on the App Store unless the operator sells at a loss.
    | 
    | Just because consumers don't understand how something works
    | doesn't mean it can't be bad for them. There are already tons
    | of examples of this in other areas like legal contracts and
    | biology/chemistry, where consumers need experts and
    | regulation to be their advocates, and ensure their rights.
 
      | enos_feedler wrote:
      | The ones that care know. This is true in any category of
      | product or service. You have people that understand how a
      | product's manufacturing might impact the environment and
      | choose to make a different purchase decision. And actually,
      | Apple correctly identified this as something their market
      | cares about and speaks to in their marketing/comms. Do you
      | know what market segment they don't really care about?
      | Hacker news. We are the only ones who discuss this sort of
      | thing and it doesn't really align with what Apple
      | values/cares about anyway. Half the people on here are more
      | probably more aligned with Android's values. This is not
      | surprising.
 
      | jbverschoor wrote:
      | They will still take a 27% cut.
      | 
      | People fully understand that any other store takes a cut.
      | The gov takes another 21%. It's arrogant to think that
      | consumers don't understand. They understand once they've
      | been told.
      | 
      | Consumers aren't told that ATM transactions cost money.
      | That a creditcard transaction costs the merchant even more
      | money. etc. etc. etc.
 
    | madeofpalk wrote:
    | My mum wanted to sign up for Netflix on her iPad.
    | 
    | > c) bad actors will learn to trick users into making the
    | choices they want
    | 
    | Bad actors have been doing this for _years_ , abusing Apple's
    | amazingly convenient payment APIs, like a "Heart Rate
    | Monitor" app that prompted users to put their finger on the
    | touch ID sensor, and then throw up an $99 IAP screen which
    | would be immediately purchased because the user's finger was
    | already on the touch ID https://www.wired.com/story/iphone-
    | touch-id-scam-apps/
 
      | hallway_monitor wrote:
      | Is there a name for this pattern? Changing the user
      | interface immediately before the user interacts with it?
      | It's not normally a dark pattern like this but as far as I
      | know it's an unsolved problem. E.g. I go to click a button
      | but 50 milliseconds before that the app has decided to
      | change layouts and now I click a completely different
      | button than I meant to.
 
        | rhizome wrote:
        | Bait and switch.
 
        | robbie-c wrote:
        | My first job was for a telecoms startup, this concept is
        | called "glare" there. E.g. I go to touch the screen to
        | make a call, but someone starts calling my while my
        | finger is in motion so the UI changes and I press a
        | button that I didn't mean to.
 
        | withinboredom wrote:
        | This is very much a solved problem (see: coyote time),
        | and is solved (for free!!!) by OS's and web browsers.
        | When you implement your own controls and do stupid stuff
        | with JavaScript, you end up with exactly as you say.
 
    | foolfoolz wrote:
    | the real way people would care is if it made things cheaper.
    | very unlikely that will happen
 
      | jbverschoor wrote:
      | Max 3% if the new payment provider charges 0
 
  | jbverschoor wrote:
  | I don't want no stinking external payment system. First of all,
  | it probably won't give lower prices. Second of all, I've seen
  | way too many dark patterns regarding subscriptions.
 
    | ThatPlayer wrote:
    | There are definitely some apps that charge more on iOS
    | compared to paying directly. Off the top of my head YouTube
    | and Spotify (before they removed it). And apps like Netflix
    | doesn't even let you subscribe in the app. Or I'm unable to
    | purchase e-books with the Amazon Kindle app. Even Twitch.tv's
    | subscriptions costs more on iOS.
 
      | jbverschoor wrote:
      | Well, they're not allowed when using external entitlements:
      | 
      | > Consistent with the ACM's order, dating apps that are
      | granted an entitlement to link out or use a third-party in-
      | app payment provider will pay Apple a commission on
      | transactions. Apple will charge a 27% commission on the
      | price paid by the user, net of value-added taxes. This is a
      | reduced rate that excludes value related to payment
      | processing and related activities. Developers will be
      | responsible for the collection and remittance of any
      | applicable taxes, such as the Netherlands' value-added tax
      | (VAT), for sales processed by a third-party payment
      | provider.
      | 
      | So yay for 3% saving, which they'll spend on another
      | payment provider, do all the support, add reporting, vat
      | etc. Seems like a lot of trouble. They simply made the
      | wrong case, just like Epic did. If they would've said that
      | they think 30% is too much, it'd be a whole different
      | story.
      | 
      | Would I want to save EUR0.75 on a EUR25/mo subscription and
      | have to deal with dark patterns etc? Hell no. And
      | especially no to the dating industry which is known for
      | their tricks. Also, the 75ct saving should be split between
      | the user and the dev. So my incentive would be 20ct? 10ct?
      | Good luck lol
 
        | ThatPlayer wrote:
        | And that's why I hope the ACM will not accept this new
        | change as enough.
 
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