Apple prohibits the use of NFTs to unlock content and features in the App Store
Tech giant Apple has recently released policy updates that limit user interaction with NFTs in the App Store.
Apple (NASDAQ: AAPL ) has blocked apps on its App Store from using non-fungible tokens (NFTs). According to reports, this move is to discourage NFT buyers and sellers from trading in the app. Apple also wants these businesses to take their activities outside the company’s territory.
By banning the use of NFTs on the App Store, Apple potentially also exempts the digital assets from the App Store’s 30% tax. The guidelines published for the tech giant’s App Store Review suggest that its stance on NFTs is here to stay. Apple says that while NFTs can exist in apps on the App Store, they cannot unlock additional features or content. Part of the published guidelines reads:
“Apps can use in-app purchases to sell and sell services related to non-fungible tokens (NFTs), such as minting, listing and transfer. Apps may allow users to view their own NFTs, provided that NFT ownership does not unlock features or functionality within the app.”
In addition, the California-based multinational technology company also states:
“Apps may allow users to browse NFT collections owned by others, provided the apps do not include buttons, external links, or other calls to action that direct customers to purchase mechanisms other than in-app purchases.”
New Policy Updates Crystallize Apple’s Stance on App Store NFTs
The updated guideline is the first codified specific set of rules governing NFTs on the Apple App Store. Meanwhile, last month, The Information reported that the tech giant’s fee policy is preventing creators and marketplaces from entering the ecosystem. This has further led to such groups directly ceasing to integrate NFTs.
The 30% commission fee Apple currently charges for in-app trading, including NFT-linked transactions, has also been criticized. According to a Twitter posts of Galaxy, Apple is moving forward with collecting this, although it will limit Web3 adoption.
In addition, several NFT startups have also frowned on Apple’s “hedging” commission on NFT transactions. The perceived imbalance becomes even more apparent when you consider that marketplaces take about a tenth of this percentage, according to these aggrieved companies. With NFT trading volumes falling in recent months, creators in the space are trying to implement more ingenious ways to market digital assets. This includes adding additional features to increase demand and revenue.
Apple’s policy also means that some users may have to resort to other cost-friendly marketplaces to conduct their NFT business.
New and upcoming Apple Consumer Electronics hardware
Apple recently unveiled new iPad pro models as well as an update to Apple TV 4K. In addition, the company also announced plans to launch a new iPad dock that will complement the functionality of the tablet. Essentially, the iPad will be able to switch from tablet to smart screen as preferred by the user.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the basics so anyone anywhere can understand without too much background knowledge. When he is not deep into crypto stories, Tolu likes music, loves to sing and is an avid movie buff.
