Apple extends deadline on requiring live events to use in-app purchases

A few days after unveiling its new M1 silicon chip for a select number of Macs, Apple is making news again as it announces new revenue terms for developers in its App Store.

Though lawyers initially planned to report Apple as well, they chose to postpone their decision after Apple said Wednesday it would reduce the standard commission on its App Store to 15 percent from 30 percent for app developers with annual profits of less than $1 million starting next year.

In the midst of a highly contentious legal battle between Epic Games and Apple regarding claims of antitrust and monopolistic app store policies, there are changes coming down the pipe to App Store developers that could quell the heightened Epic Games rhetoric as well as expedite developer transition to a new M1 written app experience. The company cited the ongoing and worsening coronavirus pandemic as the primary reason that it's delaying enforcement.

The tech giant earlier temporarily waived its customary 30 per cent App Store fee on in-app purchases for paid online events by small businesses on Facebook.

"As the world fights COVID-19, we recognise that adapting experiences from in-person to digital continues to be a top priority", Apple said on its developer website.

"To allow additional time for developing in-app purchase solutions, this deadline has been extended to June 30, 2021".

Last week, a group of South Korean lawmakers called on Google to follow Apple's move to lower its commission for app market purchases amid concerns of local app developers over high fees.

The specific guideline relates to group events or services that apply to more than one person.

For example, live group fitness classes would be required to use Apple's in-app purchase system, while a one-on-one tutoring session would be allowed to use an alternative purchase method.

Apps like ClassPass and Airbnb normally offer real world purchase options that are not subject to in-app purchases, but have instead been offering virtual experiences in recent months.