iOS TOS Pay Percentage

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Level 1

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iOS TOS Pay Percentage

Hello,

We are currently developing a website that is a type of gaming portal. Part of our mobile strategy is to develop and iOS app and we are in the process of doing our baseline research for doing so.

I need to understand a few things regarding the iOS Developer TOS:

1. Any money we charge via the iOS app MUST be charged through apple? Meaning they take 30%??? We would prefer to use our own CC merchant.

2. I heard that if we charge users money on our website, apple will STILL want 30% off our website sales?

3. You are required to submit your source to apple for your iOS app when getting approval, so there is no way around the 30% requirement?

Our core issue is that our model is low margin volume based. For each transaction, we will only be having a 5-10% profit margin. If we need to pay Apple 30% for ALL transactions, including those on our website, this is a total deal breaker for us. Not to mention eventually we also want to make an Android app. We will be losing money with each new user.

4. I have heard that older apps are "grandfathered" in and not subject to this 30% requirement - could we "Buy" and older, grandfathered app and then make it our own app?

Thank you for the help.

Posted on May 19, 2015 8:13 PM

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Answer 1

Best reply

etresoft

Level 8

46,176 points

May 20, 2015 12:58 PM in response to Jake6877

Hello Jake6877,

To answer your questions...

1. Yes. All in-app purchases must go through Apple and Apple's 30%. Apple is your merchant provider.

2. No. Apple has no involvement with your website sales. However, Apple does have review control over your app. You can create an off-site subscription system but you have to be careful about it. Specifically, the app will not be able to perform any kind of financial transaction other than with Apple. You could allow users to log it with a pre-existing subscription system, but they would not be able to create a paid subscription through the app. I'm not even sure if you can create subscriptions through the app due to privacy constraints. But if you have an existing off-app service that requires a login, you can allow you users to log in. They just can't spend any money. They would have to launch a web browser, log in there, and make purchases outside of the app. To make a long story short, the only way to save the 30% is to annoy your users.

3. No. You do not submit your source. You submit the executable. Apple has a number of review criteria. Attempts to get around the 30% is one of the top things they look for.

4. No. That is false. There has never been a "grandfather" clause for the 30% cut.

Remember, this is Apple's world. Apple doesn't care about your app, your users, or your business. Apple created the iPhone, the App Store, and its ecosystem for Apple's users and Apple's profit. If you want to leverage Apple's lucrative ecosystem of free-spending users, you have to pay for the privilege.

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