Bankless: How the App Store Ruling Will Open the Door to On-Chain Applications?

Question

Written by: BanklessCompiled by: Tao Zhu, Golden Finance What happens when the world's largest tech monopoly is sued and lost by one of the most powerful studios in gaming? The answer is likely to change mobile development forever...... After nearly five years of legal battles, Epic Games has forced Apple to rewrite the rules of the App Store. This not only brings huge opportunities for cryptocurrency but also marks a turning point for developers who have long been constrained by Apple's walled garden: they can finally profit freely according to their own wishes. Today, we will delve into the ongoing legal battle involving Epic and explore its far-reaching impact on mobile application developers. Apple's antitrust settlement In August 2020, Epic Games sued Apple, accusing the tech giant of anti-competitive behavior after it removed the widely popular multiplayer battle royale game "Fortnite" from the App Store. The core of the controversy lies in Apple's policy, which mandates that all in-app purchases must go through the App Store and charges up to a 30% commission on payments; Epic Games has attempted to circumvent this predatory policy by launching its own in-game payment system. Although Apple ultimately made a minor concession by allowing developers to link to other payment options, the updated policy still requires a 27% revenue share with Apple and strictly restricts how payments can be displayed within the app. Both parties are unwilling to make concessions, but after nearly five years of protracted litigation, the U.S. District Court for Northern California has finally made a final ruling on the case. In a lengthy, eighty-page condemnation, Judge Yvonne Gonzalez Rogers ruled that Apple Inc. deliberately violated the law by establishing anti-competitive barriers designed to protect its multi-billion dollar app store revenue sources. In addition, she also submitted Apple Inc. and one of its vice presidents of finance to federal prosecutors, accusing them of contempt of court for violating a ban on anti-competitive pricing practices in app stores that was issued in 2021. The 2021 ban on Apple primarily challenged its arbitrary practice of charging a 30% commission, and this latest ruling explicitly prohibits Apple from charging commissions on purchases made outside the app, as well as controlling the way developers communicate with users.  The golden age of cryptocurrency? In order to comply with Judge Gonzales Rogers' ruling, Apple was forced to update its App Store review guidelines for the United States. The revised guidelines not only lift any bans on external links but also explicitly allow developers to showcase NFT collectibles to users. This marks a significant victory for the emerging gaming industry in the cryptocurrency space, struggling on-chain artists, and others who profit from blockchain collectibles. Most importantly, however, the updated guidelines exempt U.S. apps from Apple's ban on external payment methods outside of the App Store that can bypass its 30% revenue share.  Cryptocurrency payments are praised for their almost instantaneous speed and extremely low cost. Previously, mobile app developers could only use approved high-fee payment channels, but Apple's recent loss has cleared the way for developers to use any payment method they desire! In an era where mobile applications allow users to choose their payment methods, many cost-conscious developers rationally abandon Apple's "walled garden" and high fees in favor of other solutions. The default use of App Store payments provides undeniable convenience for end users of the application: they have already registered their payment information with Apple, and therefore may be reluctant to store sensitive financial information on random third-party platforms. While large studios like Epic Games may find it worthwhile to independently develop proprietary payment portals, this new infinite environment provides fertile ground for experimentation with stablecoins for smaller studios. Application users do not need to repeatedly load their credit card information onto random websites and pray that they are capable enough to protect this information, but can instead make instant payments using any token in their crypto wallet, thereby simplifying the payment process and ensuring that all participants have a trustless experience. Conversely, developers can instantly access all their funds (possibly stored in stablecoins) and outsource payment responsibilities to on-chain economies built specifically for this purpose, allowing them to focus on game development. This is a truly compelling proposition for all parties, facilitating interaction between users and apps, enhancing the economics of mobile app development, and encouraging crypto payments to go mainstream. Apple's policy shift remains to be seen, but the door to mobile monetization is clearly wide open. In this new era, developers can build, profit, and scale according to their own wishes. With the emergence of seamless crypto payments, the future prospects of on-chain applications have never been brighter.