Apple takes a bite out of App Store NFTs in pursuit of revenue

Apple has taken a swipe at the new NFT ecosystem growing in the App Store – less than a month after the tech giant greenlit tokens to be bought and sold on the platform.

After an update to its review policy on Monday, Apple said approved apps can only allow the display of NFTs if they don’t unlock content or additional functionality.

Apple cited prohibited content and features, including license keys, augmented reality markers, QR codes, cryptocurrencies and cryptocurrency wallets.

NFT-related functions in the app – such as sales, minting, listings or transfers – are ok, but that’s as far as it goes. Blockworks reached out to Apple but did not receive a response by press time.

While Apple allows apps to showcase NFT collections, the Cupertino firm has disallowed external links or buttons that take customers away from the App Store to facilitate purchases.

Apple also targeted crypto exchanges operating outside its borders. These apps are now prohibited from facilitating transactions unless they are offered only in countries or regions where the platform has the appropriate licensing and permission.

Apple wants a cut in NFT revenue

Aimed at curbing NFT profits from non-store apps, thereby circumventing fees, Apple’s latest guidelines have attracted skepticism from both the crypto community and gaming industry veterans.

Apple had already drawn flak when it first allowed NFTs on the App Store in late September. The company — the largest public company in the world — revealed it would take a 30% cut from app developers earning over $1 million and 15% for those earning less, according to Android’s Google Play.

Apple also dashed any hope of accepting crypto for App Store payments in the near term. All related transactions must be denominated in USD, not digital assets.

“Clearly Apple doesn’t want NFT sales that happen outside of their store to unlock benefits on iOS because they want a 30% commission from in-app feature sales,” MyMetaverse CEO Simon Kertonegoro told Blockworks.

Only NFT wallets, marketplaces and libraries can work on Apple devices while Web3 games are not welcome, Kertonegoro said.

Earlier this month, Morgan Stanley reported that the App Store’s monthly revenue had fallen 5% year-over-year in September, their biggest drop since it began tracking them in 2015.

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