Apple prohibits utilizing NFTs to bypass App Store payments
In an update, Apple prohibits applications from utilizing NFTs to encourage customers to engage in transactions beyond the company’s control, possibly evading Apple’s authority to charge up to 30% commission on transactions.
Apple modified its App Store policy to prohibit the use of NFTs to induce consumers to acquire things or services that the tech giant cannot tax.
The Cupertino, California-based corporation charges up to 30% on all App Store transactions and other app-related expenditures.
Apple has modified its policy to restrict the use of NFTs that feature “buttons, external links, or other calls to action that steer users to buying methods other than in-app purchase.”
According to Apple’s update, apps may “sell and offer services connected to” NFTs, such as minting, listing, and transferring. However, it is not permitted to use NFTs to unlock extra “functions or capabilities.”
The incorporation of extra functionality and premium features into NFTs is a method for increasing their usability or worth. As trade volumes have dropped in recent months, NFT producers are attempting to be more innovative with their marketing strategies. Attaching more features is often considered a means of increasing demand.
Apple has previously been attacked by NFT startups for desiring a 30% commission on NFT transactions, which is considered a costly fee by many large and small businesses. In comparison, marketplaces charge only one-tenth of this proportion. Apple’s restriction effectively discourages users from doing anything other than utilizing marketplace applications like OpenSea and Magic Eden to see NFTs. If a person wishes to purchase or sell an NFT, they may do it much cheaper on the website of the marketplace.