Epic’s Tim Sweeney Calls Apple’s New iPhone NFT Policy ‘Crazy’
It would be fair to say that NFTs have limited utility right now – even crypto fans have to admit that. However, Apple may have found a use: making more money for Apple. The iPhone maker has updated its developer terms to limit how apps in the store can use NFTs. The bottom line is that developers can’t use them unless Apple gets a cut of the sales. If you’ve been keeping up with the stupid price of some NFTs, you know that skimming 30 percent off the top can be a lucrative business.
There have only been a handful of blockchain-based games (sometimes called Web3 games) that use NFTs. Typically, the NFTs are virtual items that can be worn or worn in-game, similar to how Ubisoft packed “unique” weapons and helmets into Ghost Recon: Breakpoint earlier this year. Apple’s App Store policies are always being tweaked to ensure the company continues to make a lot of money from mobile transactions, and it’s taking aim at NFTs in its latest iOS 16 update.
According to Apple’s new developer payment guidelines (Section 3.1), NFTs are allowed in iOS apps with a few major caveats. The only way apps can offer NFTs for sale in iOS apps is by going through the in-app purchase system. Doing so entitles Apple to a 30 percent cut, and some NFTs are worth the equivalent of thousands of dollars. And if you think you can just buy the NFTs for your Web3 game elsewhere, think again. Apple also says that while apps can let users browse their existing NFTs, apps can’t use ownership of those items to “unlock features or functionality within the app.”
A great summary of Apple’s latest policy madness from @FOSSpatents: It’s quite shocking that Apple, in the face of antitrust lawsuits and sharply increased legislative and regulatory scrutiny, is doubling down on brazen monopoly rent-seeking.
— Tim Sweeney (@TimSweeneyEpic) 25 October 2022
Epic Games CEO Tim Sweeny came out swinging at the news, which he called “crazy.” That’s no surprise since Epic continues to spar with Apple over App Store fees. According to Sweeny, Apple’s new policies amount to “outright monopolistic interest-seeking.” Fortnite doesn’t have NFTs right now, but Epic Games has started listing its first web3 games. Perhaps this is where Epic plans to go, and thus it would be even more difficult for Fortnite to return to the App Store.
It’s clear that Apple has identified NFTs as a threat to the App Store model, and there’s very little crypto enthusiasts can do about it. Epic has tried to get courts to recognize the App Store as an illegal monopoly, but it has had limited success. An appeal in the case is still pending, but the only factor still being considered is whether Apple must allow developers to connect to other payment methods — all of Epic’s other complaints were thrown out. Apple has no incentive to go back on NFTs.
Read now:
