This morning, The New York Times reported that Apple had rejected Sony’s ‘Reader’ app from the App Store. The app was allegedly denied on the grounds that it enabled users to purchase content from sources outside of the App Store. As this is the primary method of content delivery found in other 3rd party eReader apps such as Amazon’s Kindle and Barnes and Noble’s NOOK, many users immediately assumed these existing apps would be removed from the store as well. Some inferred ill intentions, and accused Apple trying to drive iBook sales by hindering the competition. Others noted this marked a change in the App Store’s Guidelines, barring 3rd party eBook sellers unless they modified their apps to comply with Apple’s standards. Sensing the heat arising out of these misconceptions, Apple was quick to issue a statement to All Things Digital.
In fact–according to Apple–the company has not modified App Store guidelines at all. Instead, it is enforcing a rule found in the original guidelines. This rule states that any developer designing apps with purchasable content rely on Apple’s In App Purchase API. Current applications such as ‘Kindle’ redirect users to a web interface to purchase and download content. Trudy Miller, a spokesperson for Apple, commented:
We have not changed our developer terms or guidelines. We are now requiring that if an app offers customers the ability to purchase books outside of the app, that the same option is also available to customers from within the app with in-app purchase.
While this certainly doesn’t spell doom for existing 3rd party eReaders, it does suggest a controversial change. Apple skims a cool 30% off of all transactions conducted from within apps, and books would be no exception. As it stands, companies such as Amazon reap all benefits of their ebook sales by re-directing customers online.
Using Sony as an example, Apple has issued a firm message that these types of transactions will no longer be allowed. In short, this means less money for 3rd party ebook vendors, a fate they’re likely less than happy with. Some have predicted eBook prices will be raised to compensate for Apple’s cut, though it remains to be seen, as developers update their apps to better comply with Apple’s newly enforced standards.