Apple’s new NFT policy stirs controversy

Recent changes to Apple’s NFT policy have sown division in the crypto and tech communities.

Apple updates NFT policy

Apple’s NFT policy creates controversy.

On October 24, Apple updated the App Store policies to change the policy for non-fungible tokens, or NFTs.

The new policy expressly allows app developers to “sell [non-fungible tokens] and sell services related to [NFTs].” This means that apps can allow the “deposit, listing and transfer” of NFTs within the app.

However, one huge caveat is that the policy does not allow the sale of “useful” NFTs. App developers cannot allow users to unlock in-app features or functions with NFTs, nor can they redirect users to external purchase mechanisms.

These limitations are likely to be detrimental to blockchain-based games that use NFTs. However, it is not clear that such apps have a large presence in the first place, as queries in the app store only return nine NFT apps.

Apple first started supporting NFTs in late September, when they were criticized for relying on their own payment mechanism. This approach means Apple adds a 30% tax on NFT sales in high-revenue apps – a policy that also applies to other apps with transactions.

Reactions have been mixed

Reactions to the new policy have been mixed. Apple’s policy has been recognized positively by some, with headlines from Forbes and Game developer highlights the fact that the new store policy explicitly accommodates NFTs.

Others have criticized Apple for the restrictive nature of the policy and its seemingly excessive 30% cut.

Tim Sweeney, CEO of Epic Games, have criticized both sides by claiming that Apple is neither for nor against NFTs, but rather is motivated solely by money. “They support NFTs they tax, and ban NFTs they don’t tax,” Sweeney observed.

Some have noted that Apple’s restrictive NFT policy is not entirely unique. Bryan Ross, a staff software engineer at Docker, noted the absurdity of Apple introducing “the same in-app purchase rules that other apps have to, and looking at the whole [tech] sphere melts down in response.”

Yat Siu, one of the founders of blockchain-focused gaming company Animoca Brands, suggested that Apple’s restrictions are only possible because of its current dominance. He argued that the economic opportunity for blockchain gaming will become “so weighty, like an open market,” that Apple “will eventually capitulate.”

Today’s news comes alongside an FCA discussion on Big Tech and its impact on retail finance. These discussions aim to create a pro-competitive approach in these markets.

While not specifically related to Apple’s NFT policy, the discussion could lead to future regulatory changes, thereby impacting Apple’s policies around NFTs and payments.

Disclosure: At the time of writing, the author of this piece owned BTC, ETH and other digital assets.