Apple cracks down on NFT functionality, social posts increase with App Store rules • TechCrunch

Apple rolled out software updates — iOS 16.1, iPad OS 16.1 and macOS Ventura — to all users on Monday. It also introduced new App Store rules that limit features unlocked through NFTs and mandate apps to use Apple’s payment method to buy “boosts” for social media posts.

NFTs

The company said apps are allowed to list, create and transfer, and allow users to view their own NFTs (Non-Fungible Tokens). However, the ownership of NFTs should not unlock more features in the app. In addition, these apps may allow users to browse other collections, but they shall not display external links, buttons or calls to action to purchase NFTs. Users can only purchase NFTs through Apple’s in-app payment system.

The company also prohibits apps from using other mechanisms such as QR codes or cryptocurrencies to grant users special access.

“Apps cannot use their own mechanisms to unlock content or functionality, such as license keys, augmented reality markers, QR codes, cryptocurrencies and cryptocurrency wallets, etc,” it said.

People from the industry pointed out that these changes could have serious consequences for the functionality of web3 dependent apps (including games) in the Apple ecosystem. Until now, they may have used NFTs as a way to prevent Apple’s App Store fees and at the same time as a token or key to unlock features for users – but that won’t be allowed anymore.

In particular, Meta has begun rolling out features for users to showcase their NFTs on both Instagram and Facebook. The company has also expressed a desire to open a marketplace for artists to sell their digital creations. But this move by Apple means it may have to pay App Store fees if the marketplace is made available on iOS.

Crypto exchange

The company is also cracking down on cryptocurrency exchanges as it now mandates them to have “appropriate licensing and permits to offer a cryptocurrency exchange” in every region they operate in. So Apple now has the power to remove a cryptocurrency exchange from a local App Store if it consider the app to be illegal for that region.

Social media is increasing

With new App Store rules, Apple said marketers won’t need to use in-app purchases to manage and buy campaigns across different media types like TV, apps and outdoor. However, they must use Apple’s in-app purchase system to purchase boosts for social media posts – this will only apply to apps that offer in-app tools to promote posts. That means Apple will take a cut of those sales, which could cause the platforms to increase fees.

This could affect companies like Meta, TikTok and Tinder, which offer in-app boosts.

Other changes

• Apple has now included concepts that capitalize on current events such as “violent conflicts, terrorist attacks and epidemics” under the objectionable content section.
• Apple also adds “hookup” apps or apps “that may include pornography or be used to facilitate prostitution or human trafficking and exploitation” in the offensive content section.
• The company prohibits apps from unauthorized use of music from iTunes or Apple Music as a soundtrack for a game or as background music for a video or photo collage.
• Smart home apps that support the Matter IoT standard must use Apple’s support framework to initiate ping.
• Developers must provide full access to App Store reviewers through an active demo account or demo mode so they can test account-based features.

Over the past few years, Apple has had to reduce App Store fees and allow third-party payment systems for in-app purchases in many regions around the world. With these new rules, the company has added new possible ways to make money using the App Store. These changes have also brought back concerns about Apple’s anti-competitive practices and its tight control about how apps operate in the App Store.