How to Bypass Apple’s In-App Purchase Fees: Strategies from Netflix, Spotify, and Our Experience

Apple’s App Store policies, particularly the 30% commission on in-app purchases, have long been a point of contention for developers and businesses. Major companies like Netflix and Spotify have implemented strategies to circumvent these fees while remaining compliant with Apple’s guidelines. Drawing inspiration from these industry leaders, we developed a similar workaround for our app.

Understanding Apple’s In-App Purchase (IAP) Policy

Apple requires that digital goods and services offered within iOS apps utilize its In-App Purchase system, from which it takes a 30% commission. This policy has been criticized for being excessive compared to the typical fees charged by other payment processors, a topic that has been widely discussed in articles analyzing Apple's 30% App Store commission and its impact on developers.

Case Studies: Netflix and Spotify

Netflix: In 2018, Netflix stopped allowing new or returning users to subscribe via in-app purchases on iOS. Instead, users were directed to sign up through the Netflix website, effectively bypassing Apple's commission. The Netflix strategy for handling iOS subscription management outside the app to avoid Apple's commission provided users with detailed instructions on how to manage their subscriptions outside of the app. This strategy set a precedent for how other companies could navigate Apple's policies.

Spotify: Spotify has had a longstanding dispute with Apple over the App Store's commission fees. In 2015, Spotify urged its iOS subscribers to cancel their App Store subscriptions and re-subscribe through its website to avoid the 30% fee. This move demonstrated how large companies could utilize external payment systems to bypass Apple's substantial cut, as noted in Spotify's approach to circumventing Apple's 30% commission fee on in-app subscriptions.

Our Workaround Strategy

Inspired by these approaches, we implemented the following steps:

1. WebView Modification: We adjusted our app's WebView to intercept and block unauthorized external payment links, ensuring that users could not complete purchases within the app. This modification redirected users to our website for subscription registration and payments, aligning with Apple's guidelines. This WebView adjustment is a typical solution in app development, helping to streamline payment processes while aligning with Apple’s guidelines.
2. Backend Adjustments: Utilizing Laravel's Blade templates, we removed any in-app payment options and provided clear instructions for users to complete their subscriptions on our website. This ensured that all payment processes occurred externally, maintaining compliance with Apple's policies. These kinds of backend changes are a standard part of our web app development services, which aim to provide seamless external integrations.
3. Comprehensive Testing: We conducted thorough testing to confirm that all unauthorized payment links were effectively blocked and that the user experience remained seamless during the transition to external payment processes.
4. Transparent App Store Submission: In our App Store submission, we clearly stated that all subscription registrations and payments were handled through our website. This transparency facilitated a smoother review process and approval from Apple.

Recent Developments in Apple’s Policies

In response to legal challenges and regulatory scrutiny, Apple has made concessions regarding its in-app purchase policies:

• External Payment Links: Apple now allows certain apps to include links to external websites for account creation and management, enabling developers to bypass the in-app purchase system. These changes, detailed in Apple’s policy changes allowing third-party payment systems and external links in apps, have made it easier for developers to offer alternative payment methods. By integrating external payment processing through web app development or native app development for iOS and Android, businesses can build apps that comply with Apple’s updated guidelines while avoiding high commission fees.
• Regulatory Actions: In various regions, including the European Union, regulatory bodies have pressured Apple to relax its App Store rules, allowing for more flexibility in payment methods and reducing the mandatory commission fees. "Ongoing global legal pressures and regulatory challenges impacting Apple's App Store fees and shaping app store policies are driving significant changes in Apple’s App Store guidelines.”

Challenges:

• Compliance Challenges: Adhering to Apple’s stringent guidelines, such as proper disclosures and avoiding mimicry of in-app purchases, is crucial to avoid app rejection.

• User Conversion: Redirecting users to external payment sites may introduce friction, leading to potential drop-offs in subscription sign-ups.

• Technical Demands: Setting up secure external payment systems requires additional development and ongoing maintenance resources.

• Apple’s Fees: Even with external payment methods, Apple charges reduced commissions, which may limit financial savings.

• Legal Risks: Bypassing Apple’s payment system can lead to disputes, as seen in the Epic Games case.

• Solutions: Ensure seamless user experience, maintain legal compliance, partner with reliable payment processors, and communicate transparently with users.

Conclusion:

By adopting a strategy similar to Netflix and Spotify, we successfully navigated Apple’s in-app purchase guidelines, ensuring compliance while avoiding substantial commission fees. This approach not only preserved our revenue but also provided a seamless user experience. As Apple continues to adjust its policies in response to global regulatory pressures, developers have more opportunities to implement alternative payment methods that align with their business models.