On the web, if I build something that works within the standards, it works. Whether people use it is up to them. On iOS, there is another question entirely: whether Apple decides it should exist.
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In the past couple of years I’ve built three apps that were rejected from the App Store on various grounds.
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A while ago I tried to submit an iOS app for Dark Hours, my astronomy website for normal people. It was rejected on the grounds that it was astrology.
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I see countless ChatGPT wrappers with nearly identical icons and eye-watering subscriptions. I see astronomy apps requesting permissions that have nothing to do with looking at the night sky. My kids download games that interrupt play every few minutes to advertise the developer’s other subscription apps, each with their own $20–50 yearly plans.
But if you actually look at Godier’s Dark Hours, for even just a few seconds, it is instantly obvious that it pertains to the science of astronomy and has absolutely nothing — zero, zilch, nada — to do with astrology.
[…]
Godier proceeded through a series of escalations up to the App Review Board and the Review Board responded that they determined the original rejection was valid because, I shit you not, “We understand that the app includes a live tarot reading feature.” Which isn’t even about astrology. It’s straight out of Kafka.
[…]
This isn’t just contrary to the benefit of developers, like Godier. It’s obviously contrary to the benefit of Apple itself, which should not just accept an app like Dark Hours, but celebrate it as an exemplar of the platform.
Mistakes happen. But in a functioning system mistakes get corrected, and mistakes as obvious as this one get corrected almost instantly and include a quick apology for the conflation. The App Store is not a functioning system.
To the best of my recollection, this is the first post I’ve retracted in the 24 years I’ve been writing Daring Fireball. I hope it’s the last. I was misled, both overtly and through omissions[…]
[…]
The truth is, the app, as originally submitted by Godier to the App Store (under the name “Asterly”, not “Dark Hours”), was entirely dedicated to astrology, not astronomy, and did in fact include a “Tarot card of the day” feature amongst other occultist horseshit.
[…]
I wrongly took Godier at his word, both in his public blog post and in private iMessage correspondence yesterday, that the rejection wasn’t just merely debatable, but completely and rather preposterously ungrounded. Whether Godier ever submitted a build of “Asterly” to the App Store that contained no occult horseshit and only the hard-science astronomy features that were present in his “Dark Hours” website that was available for the last week, I don’t know. But I have no reason to believe that he did.
[…]
In an uncomfortable exchange between Beher and Godier on Bluesky, Beher pointed out that Godier’s Dark Hours had the same bug as Beher’s that routed people to “random fields in Mexico”. Earlier today, Godier took his web app down and redirected his darkhours.io domain to Beher’s darkhours.app.
I’m really unhappy about this, both for my role in spreading a false story and because I think it will hurt the cause of reforming App Review. I know there are many crazy rejections and have experienced some first-hand. This story was believable because of that well-known history and because Godier didn’t seem like a nobody trying to get attention—he was the developer of another highly regarded app. But now people are going to point to true developer stories and accuse them of being fakes, too.
BOTH projects were generated using Claude. So you have two people - both generating the same app from the same training data - having a public throw down over who copied who.
[…]
The “original” developer does claim to know how to code - which wasn’t clear from my research. That still doesn’t necessarily mean the original app was the source of the training data. They both may be a result of the same training data.
Holy shit, so the “Claude plagiarised an app” story is actually “Claude produced the same app twice when prompted to do so by two separate developers” 😅
It’s not clear to me exactly how much each developer relied on Claude or which training data was used, but I wanted to note this angle of the story.
With all this talk of an astrology app being rejected by App Store review I’m reminded there’s still a flat Earth/astrology app on the App Store that actively leaks the location of all of its users.
Apple briefly removed Telegram from the App Store on Monday night after a review found content that violated its guidelines against child sexual abuse material (CSAM), but restored the app a short while later, according to Reuters.
It seems like this was a symbolic gesture. Removing the app didn’t affect any of the customers who had already downloaded it. Probably none of them saw the image. And restoring the app doesn’t mean that it’s completely free from CSAM—probably none of the major platforms is. It just means that Telegram did the obvious thing after the violation was reported, which presumably they would have done, anyway.
And before even contacting the developer? Telegram banning the account is what actually prevented users from potentially seeing the CSAM. Apple’s action seems like either a mistake or trying to send them a message.
I would note, by the way, that the Telegram app was apparently never removed from the Mac App Store. Which goes to show how little Apple cares about the Mac App Store.
Because Telegram quickly removes illegal content from public groups using all kinds of moderation tools, the attacker had to resort to a technical trick. He inserted AI-modified illegal content by editing an old message in an active group chat. As a result the content was effectively hidden from the group’s members, preventing them from seeing/reporting it.
The attacker was a takedown extortionist: someone who demands ransom from group owners in exchange for not targeting their communities. These extortionists use automated accounts to plant illegal content in public groups and then report it directly to Apple, attempting to trigger the removal of legitimate communities whose owners refused to pay them.
[…]
Extortionists have found a way to manipulate Apple into overreacting. Apple removed Telegram from the App Store before contacting us. This creates a potential systemic risk for every mobile app that hosts user-generated content. If an app used by more than a billion people can be removed from the App Store without prior warning, any app can be.
During the time the app was unavailable, many speculated that the move was politically motivated, or perhaps in response to the recent discovery that Telegram has allegedly been using an obfuscated private UIKit API to animate its emoji picker.
It’s sad but kind of hilarious that both of these so disparate theories were considered possible. Durov really does have political enemies, and Apple really does seem to have it out for Telegram. But, also, using private API to animate emojis totally seems like something that Telegram would do and that Apple would overreact to.
Over the last nine months, Mark Zuckerberg’s Meta has run dozens of paid ads that include explicit AI-generated child sexual abuse material (CSAM) and images of minors alongside sexually suggestive statements, according to details of the ads shared with WIRED. The ads, which in some cases reached several thousand accounts, were targeted at people living in the United States, United Kingdom, and more than a dozen European countries.
This is much worse than what happened with Telegram, yet Apple didn’t overreact.
Apple briefly removed Telegram from its App Store late on Monday after detecting child sexual abuse material (CSAM) in a public group. The messaging app was restored within about 40 minutes once Telegram deleted the content and banned the responsible user. Telegram CEO Pavel Durov later described the incident as the work of a “takedown extortionist” who deliberately planted AI-modified illegal content to trigger the removal and pressure online communities.
According to Durov’s statement on X (see below), the attacker edited an old message in an active public group chat to insert the prohibited material. Because the edit was backdated, the content remained effectively invisible to ordinary group members, limiting their ability to report it through normal channels and helping it evade some of Telegram’s automated moderation tools. The perpetrator then reportedly flagged the material directly to Apple.
Durov characterized the actor as a takedown extortionist—someone who demands payment from group owners in exchange for not targeting their communities. These operators, he said, rely on automated accounts to seed illegal material in public groups and then report it to platform gatekeepers such as Apple in an effort to force the removal of legitimate communities whose administrators refuse to pay.
“From a practical standpoint, illegal pornographic content in Telegram’s public groups is not a systemic problem,” Durov wrote. “Our moderation is effective. The fact that attackers must resort to backdated, effectively invisible content and other technical tricks proves this.” He emphasized that Telegram routinely removes illegal material from public groups using a range of moderation tools.
Apple confirmed that a content review had identified CSAM that violated App Store guidelines. The company stated that Telegram “promptly removed the content and banned the user,” after which the app was returned to the store. Apple has not publicly addressed Durov’s claim that an extortionist manipulated the process. Durov noted that Apple pulled Telegram before contacting the company.
Durov framed the episode as a warning for other developers. “Extortionists have found a way to manipulate Apple into overreacting,” he said. “This creates a potential systemic risk for every mobile app that hosts user-generated content. If an app used by more than a billion people can be removed from the App Store without prior warning, any app can be.” He also cautioned that the tactics used by such coordinated reporting groups are evolving and that other platforms may be less prepared to identify and counter them.
The incident underscores ongoing tensions between large platforms that host user-generated content, the moderation challenges they face, and the policies of mobile app marketplaces that can unilaterally restrict distribution. Telegram continues to operate normally on iOS following the short-lived removal.
Last night Apple briefly removed Telegram from the AppStore because a user had planted illegal porn in a public chat.
Telegram was restored within hours. But I want to explain what happened — to warn other app developers and help protect online communities from similar attacks.
Because Telegram quickly removes illegal content from public groups using all kinds of moderation tools, the attacker had to resort to a technical trick. He inserted AI-modified illegal content by editing an old message in an active group chat. As a result the content was effectively hidden from the group’s members, preventing them from seeing/reporting it.
The attacker was a takedown extortionist: someone who demands ransom from group owners in exchange for not targeting their communities. These extortionists use automated accounts to plant illegal content in public groups and then report it directly to Apple, attempting to trigger the removal of legitimate communities whose owners refused to pay them.
From a practical standpoint, illegal pornographic content in Telegram’s public groups is not a systemic problem. Our moderation is effective. The fact that attackers must resort to backdated, effectively invisible content and other technical tricks proves this.
However, there are two important lessons here for app developers and online communities:
— Extortionists have found a way to manipulate Apple into overreacting. Apple removed Telegram from the App Store before contacting us. This creates a potential systemic risk for every mobile app that hosts user-generated content. If an app used by more than a billion people can be removed from the App Store without prior warning, any app can be.
— The tactics used by takedown extortionists are evolving, putting communities across social platforms at risk. Telegram has extensive experience identifying the tricks used by coordinated reporting gangs and protecting legitimate communities (even when doing so risks our own app being temporarily removed from the App Store). Other platforms may not be equally prepared.
Stay vigilant!
MacDailyNews Take: Apple’s App Store really is one of history’s most profitable cans of worms.
It’s an astonishing money machine: the broader App Store ecosystem facilitated over $1.4 trillion in developer billings and sales in 2025 alone. Physical goods and services (retail, food delivery, travel, etc.) made up the bulk (~$1.1 trillion), where Apple takes no commission. Digital goods and services accounted for about $149 billion, and in-app advertising another $151 billion. On the digital slice Apple typically charges 15–30%, generating many billions in high-margin revenue that helps power its Services business.
Yet the same walld garden that produces those results is a perpetual source of headaches. Apple’s near-total control over iOS distribution and payments has fueled years of antitrust battles — Epic Games, the U.S. DOJ, EU Digital Markets Act enforcement, court findings of non-compliance, and ongoing developer lawsuits. Critics call the commission the “Apple Tax,” complain about arbitrary review decisions, limited sideloading or alternative stores (outside certain regulated markets), and the risk that a single content flag can yank a major app offline without warning.
The recent Telegram episode fits the pattern perfectly. A brief App Store removal triggered by planted illegal content (which Telegram says was the work of a takedown extortionist) showed how Apple’s gatekeeper power can be gamed or lead to rapid, high-stakes reactions.
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The App Store is evolving at a breakneck pace not seen since its earliest days. We saw the first glimmers of what was to come early in 2025, but it wasn’t until late last year that the tsunami of apps developed with the help of AI agents really took hold.
How these forces play out long-term is anyone’s guess, but it’s worth examining because, just as Federico’s link to Bryan Irace’s post about agentic coding tools foreshadowed the rise of tools like Codex and Claude Code, today’s trends are sparks that have the potential to become tomorrow’s App Store wildfires or simply fizzle out.
Utility apps are on the front lines of this change. The TechCrunch story I linked in April picked up on this trend:
Another interesting tidbit from Appfigures is that the Utilities app category moved up the top five chart.
If anything, the trend has accelerated in the months since.
It’s not surprising at all that utility apps have taken off. They’ve been a staple of new developers since long before agents came along. That’s because many are UI wrappers around command line tools. That isn’t a knock against the developers of those apps; most users don’t want to open Terminal to convert a video or audio file to another format using ffmpeg, for example. By building a great UI around command line tools, developers have made them far easier to use.
However, the relative simplicity and narrow scope of many utility apps have made them a natural fit for AI agents, too. That’s why the App Store (and my inbox) is deluged with Mac menu bar and single-screen iPhone and iPad utility apps.
On the one hand, the abundance of utilities has been great for users. More choice means you’re more likely to find the app that perfectly fits your needs.
On the other hand, though, I don’t think what’s happening in the category is sustainable and expect to see it dramatically shift again in the coming months. As we’ve seen from reporting by The New York Times, app supply is outstripping demand by orders of magnitude, which will drive down prices. That alone is likely to cause the utility app market to shrink. But there’s more to it than that.
Remember, the demand shifts that The New York Times reported, based on Sensor Tower numbers, are for the entire App Store, where download numbers have grown 2-3% this year and last. I expect utility downloads to actually shrink in the coming months – again, because of agents. Utilities, especially simple ones, are exactly the sorts of apps that are becoming trivially easy for power users – the very users these utilities are made for – to create themselves. From frontier labs‘ model improvements to a growing number of app-building tools from those same labs and third parties, it’s never been easier to build a web or native app yourself.
And although I agree with people, like Nilay Patel, who say the notion that everyone will build their own software is overblown, the utility market is different. Your average person is not downloading apps to adjust the frame rate and file format of a video or downloading YouTube videos to watch later. But those are exactly the sort of things that people who are using agents are doing with them, whether they’re having an agent do those things directly via a command line tool in an app like Codex or Claude Code or building an app to do the same thing. That’s going to put even more pressure on the category.
That said, I think there will always be a cohort of users who would rather pay for an app than build it themselves, so I’m not predicting the demise of utilities in general – just the end of today’s frothy market. I also think there remains a place for simple utilities that solve hard problems with clever solutions. Not every utility is a UI wrapper for a terminal command. Plenty of apps feature original solutions or thoughtful and unconventional remixes of disparate tools.
Utilities aren’t going away, but just like other App Store deluges, the trend will recede. It’s just that this time, it’s likely to flip faster than usual.
Telegram was temporarily removed from Apple’s App Store worldwide after the iPhone maker identified content from one user that violated its rules against child sexual abuse material, the messaging service said on Tuesday.
According to a report from Reuters, the episode mirrors a similar brief suspension in 2018, when Apple pulled the app over what Telegram founder Pavel Durov at the time described as “inappropriate content.” The app was restored then after Telegram strengthened its safeguards.
An Apple spokesperson confirmed the recent short-lived removal, stating that its review found content violating guidelines that prohibit child sexual abuse material. “The app was subsequently restored after the developer promptly removed the content and banned the user who posted it,” the spokesperson added. The removal and restoration occurred on the same day once Telegram acted.
Telegram, which counts more than a billion monthly active users, maintains a zero-tolerance policy on such material. It said it has blocked nearly 338,000 groups and channels for related content this year.
Epic Games CEO Tim Sweeney, whose company has long clashed with Apple, also weighed in on X. “Apple has stated they removed the app from availability to a billion users because a Telegram user posted something horrible and illegal,” Sweeney wrote, according to Reuters. He continued: “They did not elaborate on how, if that is the standard for app removal, any communications app could operate at scale, including iMessage.”
An Apple spokesperson did not respond to further questions about the guideline violation, Reuters reported.
MacDailyNews Note: The incident comes amid ongoing regulatory attention on Telegram’s handling of illegal content. Britain’s Ofcom opened an investigation in April over concerns about the sharing of child sex abuse material; Telegram has categorically denied the accusations and said it has virtually eliminated the public spread of such material since 2018 through detection algorithms. In February, Australia’s online safety regulator also fined the company for delays in responding to queries about measures against child abuse material and violent extremism.
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Russia’s anti-monopoly watchdog has opened a formal case against Apple after the U.S. technology company failed to comply with an earlier warning requiring the pre-installation of Russian applications on its devices, state news agency RIA reported on Monday.
All mobile phones and tablets in Russia must have the state-backed MAX messenger app pre-installed, the Russian government announced in August 2025.
The case centers on Apple’s alleged non-compliance regarding the mandatory pre-installation of Russia’s MAX messaging app and a domestic Russian app store. The move follows a warning issued by the regulator that the company did not fully address.
The development marks the latest escalation in Moscow’s efforts to enforce rules aimed at promoting local digital services on foreign devices sold in the country. No further details on potential penalties or next steps were immediately available.
Reuters
MacDailyNews Take: MAX is criticized for potentially enabling user tracking which aligns with Moscow’s push for tighter internet control amid tensions with the West over Ukraine.
As Glenn Greenwald said, “The way things are supposed to work is that we’re supposed to know virtually everything about what [government officials] do: that’s why they’re called public servants. They’re supposed to know virtually nothing about what we do: that’s why we’re called private individuals.”
But, the Russian government obviously fears its population, hence its diktats.
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Despite predictions that AI agents could make traditional apps obsolete, developers are shipping new software faster than ever. From smarter bookmarking tools and neighborhood marketplaces to digital pen pals and nature journals, here are the latest App Store finds worth adding to your Home Screen.
App Store regulatory changes are beginning to affect Apple Services growth as developers gain more ways to avoid Apple’s payment system or pay lower commissions in major markets.
Apple finance chief Kevan Parekh told investors that changes to the App Store business model in some countries had affected its performance during the June quarter. Softer spending on mobile games created additional pressure.
The acknowledgement is significant because regulatory risk has appeared in Apple filings for years without producing a clearly identified effect on Services performance. Apple is now confirming that rule changes have advanced far enough to influence reported results.
The impact does not mean the App Store has stopped growing. Apple described the store as reaching another June-quarter revenue record, while Services expanded by approximately 12% from the previous year.
The emerging issue is the rate of growth. A purchase can still occur inside an iPhone app while generating less revenue for Apple when the customer pays through a developer’s website or uses terms carrying a reduced fee.
App Store Regulatory Changes Affect Several Markets
Apple did not identify one country or policy as solely responsible for the effect.
The company is adapting to a collection of court orders, competition laws and regulatory agreements that differ substantially among the United States, European Union, China, Brazil, Japan, South Korea and other markets.
Some rules concentrate on payment choice. They allow developers to place links or buttons inside apps leading customers to external checkout pages.
Other changes permit alternative app marketplaces or direct distribution outside the App Store. Several regulators are also examining whether Apple can charge developers for transactions completed through another payment provider.
The financial result depends on the model adopted in each country. Apple may receive no commission, a reduced commission or another fee connected with platform technology and distribution.
This creates a more fragmented App Store business. A subscription sold through the same application can produce different revenue for Apple according to the customer’s country, payment route and the developer terms governing that version of the app.
Image Credit: Apple Inc.
The United States Changed External Payment Links
The most direct change in the United States came from the long-running legal dispute between Apple and Epic Games.
A federal court previously ordered Apple to stop preventing developers from directing customers toward outside purchasing options. Apple responded by allowing certain external links while seeking commissions of between 12% and 27% on purchases completed through them.
The company also introduced design restrictions, an approval process and a warning screen displayed when customers left the App Store environment.
In April 2025, the district court found Apple in civil contempt for failing to comply fully with the anti-steering injunction. The ruling prohibited the company from collecting a commission on purchases made through external links and removed several restrictions governing their appearance.
Apple updated its App Review Guidelines in May 2025. Apps distributed through the United States storefront can include buttons, external links and other calls to action leading customers toward another payment method.
The rules no longer require a special external-link entitlement for the U.S. storefront.
That change gives developers a straightforward financial reason to move some transactions to the web. A company can process a payment through another provider instead of giving Apple a percentage of the digital sale.
The customer can return to the iPhone app and use the purchased subscription or content. The app remains distributed through Apple, but the associated transaction no longer produces the same App Store commission.
Enough developers adopting that route can slow Apple Services growth even if total spending on iPhone applications continues increasing.
The European Union Introduced Alternative Distribution
The European Union’s Digital Markets Act requires Apple to permit alternative app marketplaces, outside payment systems and other changes intended to reduce its control over iOS distribution.
Developers can remain under Apple’s conventional App Store terms or adopt business terms designed for the European market.
The alternative structure separates several services that were previously combined inside one commission. Developers can choose different levels of App Store support, use Apple’s payment system, provide another payment option or distribute software through a competing marketplace.
Apple introduced reduced commissions and technology-related fees to preserve compensation for the tools, security systems, distribution infrastructure and platform access it provides.
Those terms have changed several times following regulatory objections. Beginning in 2026, Apple started moving from its earlier Core Technology Fee toward a Core Technology Commission applied to eligible digital transactions under particular conditions.
The structure means outside payments do not always eliminate Apple fees in Europe. They can still reduce the amount Apple collects or shift revenue among different fee categories.
Regulators continue examining whether the terms provide meaningful choice or discourage developers from leaving the standard model.
Apple argues that alternative stores and payment systems create additional privacy, security and fraud risks. The European Commission has focused on whether Apple’s warnings, technical requirements and fees make those options unnecessarily difficult to use.
European developers must calculate more than one commission. They need to consider payment-processing costs, marketplace charges, customer acquisition, reporting obligations and the Apple terms attached to each distribution method.
The result may be lower App Store revenue without an equally large shift toward independent marketplaces. External website payments can change Apple’s economics more quickly because they do not require customers to install another store.
Apple lowered several commission rates in the China mainland storefront beginning March 15, 2026.
Qualifying transactions under the App Store Small Business Program and Mini Apps Partner Program now carry a 12% commission. The same rate applies to eligible auto-renewing subscriptions after the subscriber’s first year.
These transactions previously qualified for a higher 15% rate.
A three-percentage-point reduction may appear small beside demands for completely independent payments. At the scale of China’s app economy, it can remove a meaningful amount of revenue while improving the share retained by developers.
The Mini Apps Partner Program is particularly important in China because large platforms can contain many smaller services inside one host application.
Reducing the commission can encourage those ecosystems to continue using Apple In-App Purchase. It also demonstrates how Apple may respond to pressure by offering more favorable terms before regulators require a more disruptive change.
Lower commissions can support transaction growth over time, but the immediate calculation is straightforward: Apple receives less from each qualifying purchase.
Image Credit: Apple Inc.
Brazil Opens iOS to Outside Stores and Payments
Apple introduced alternative app distribution and payment options in Brazil through an agreement with the country’s competition regulator, CADE.
Beginning with iOS 26.5, developers can distribute apps through alternative marketplaces, operate those marketplaces and process digital payments outside Apple In-App Purchase.
Apps can also present links leading users to an external website where the transaction is completed.
Apple continues applying notarization and other technical requirements to software distributed outside the App Store.
The company maintains that these protections reduce risks but cannot provide the complete safeguards associated with App Review.
Brazil is a major smartphone and digital-services market. Its effect on Apple Services will depend on whether large developers adopt the new options and whether customers are willing to leave the familiar App Store purchasing flow.
An external option existing in software does not guarantee that people will use it. The developer must usually offer a meaningful advantage, such as a lower price, a different subscription package or payment methods better suited to local customers.
Adoption can increase gradually as existing apps release updates. The financial impact may therefore become more visible over several quarters rather than appearing immediately after the regulatory agreement takes effect.
Why Outside Payments Reduce Apple Services Revenue
Apple receives a commission when an eligible digital purchase uses its in-app payment system.
The fee compensates Apple for distribution, payment processing, fraud management, developer tools, customer support and access to the iOS platform, according to the company.
The standard percentage varies. Small developers and long-running subscriptions can qualify for reduced rates, while other eligible digital transactions may carry higher commissions.
When payment moves to a developer’s website, an independent processor handles the financial transaction. The developer pays that provider, manages more of the customer relationship and retains the amount that would otherwise become an App Store fee.
Apple may still provide the operating system, APIs, development tools and App Store distribution without receiving the conventional payment commission.
This separation explains why App Store activity and App Store revenue can move differently. People may download more applications and spend more on digital services while Apple captures a smaller percentage of the commerce.
The same customer could maintain several subscriptions used exclusively on an iPhone without any of their monthly payments passing through Apple.
Apple can collect other revenue from that user through hardware, advertising, iCloud or its own subscriptions. The external transaction nevertheless removes one part of the Services model.
Most App Store Commerce Never Paid Apple a Commission
The size of the App Store economy should not be confused with Apple’s commissionable revenue.
Apple says the global App Store ecosystem facilitated more than $1.4 trillion in developer billings and sales during 2025. More than 90% of that commerce did not produce a commission for the company.
The largest categories involve physical goods and services such as retail purchases, travel, grocery delivery, restaurant orders and transportation.
Apple does not collect a percentage when someone uses an Amazon app to order furniture, books a hotel or pays for a meal delivered through an iPhone.
App Store commissions generally concentrate on digital goods, application features, virtual items and subscriptions sold through Apple In-App Purchase.
Regulatory changes target this smaller but financially important part of the ecosystem.
Digital transactions require no physical inventory or delivery network, allowing payment commissions to carry attractive margins. Losing part of that revenue can therefore affect profitability more than the dollar amount alone suggests.
Apple does not disclose App Store revenue or profit separately. The category remains combined with cloud services, advertising, media subscriptions, AppleCare, payments and other operations inside Services.
Mobile Gaming Weakness Adds Another Pressure
Regulation was not the only factor Apple identified.
Parekh said softer mobile gaming activity also affected the App Store. Games represent an important source of digital transactions because players purchase virtual currency, characters, cosmetic items, subscriptions and access to additional content.
A decline in game spending directly affects the commission Apple receives through In-App Purchase.
Gaming is also one category where developers have pushed aggressively for alternative stores and payments. Epic Games began its legal confrontation with Apple after introducing another payment method inside Fortnite and attempting to bypass App Store commissions.
The simultaneous effects are difficult to separate. A game can generate lower revenue because players are spending less, because payments moved outside Apple’s system or because both changes occurred together.
Apple does not provide enough category detail to calculate the contribution from each factor.
The distinction matters for the outlook. Gaming demand can recover with successful releases and stronger consumer spending. A permanent regulatory change does not reverse when one popular game reaches the top of the charts.
Image Credit: Apple Inc.
Developers Gain Revenue but Assume More Work
Outside payments can improve the amount a developer retains from each purchase.
A company moving from a conventional App Store commission to a lower-cost web payment processor may use the difference to reduce prices, fund development or improve profitability.
The developer also assumes responsibilities previously handled through Apple.
Independent billing requires payment processing, tax management, fraud protection, refunds, account recovery and customer support. Subscription status must synchronize correctly between the website and the iPhone app.
Customers changing devices or reinstalling an app expect their purchases to remain available. The developer needs its own account system capable of verifying ownership without relying entirely on Apple’s purchase history.
Small developers may decide that Apple In-App Purchase remains worth its fee because it removes operational complexity and gives customers a familiar checkout experience.
Large subscription businesses have stronger incentives to build their own systems. They already maintain accounts and payments across websites, televisions, Android devices and other platforms.
The regulatory effect will therefore vary by developer size and business model. One company may remove Apple billing completely, while another continues using it because external infrastructure would cost more than the commission saved.
Customers May Receive Lower Prices
External payments create the possibility of lower subscription prices because developers no longer need to incorporate the complete App Store fee into the amount charged.
Some services already cost more when purchased through an iPhone app than through their websites. The higher price allows the developer to preserve similar revenue after Apple receives its share.
A visible external link makes comparing those prices easier. Customers can leave the app, complete the transaction on the web and return with an active account.
Savings are not guaranteed. A developer can retain the entire difference rather than passing it to subscribers.
Independent billing can also make subscription management less consistent.
Purchases completed through Apple appear in one location:
Settings > Apple Account > Subscriptions
A subscription purchased directly must be canceled through the developer’s website or account system. Customers using many external services may need to remember several billing portals and renewal policies.
Refunds and purchase disputes also move away from Apple. The developer or its payment processor becomes responsible for resolving the transaction.
Choice can reduce prices while increasing complexity. The practical outcome depends on whether developers make external checkout clearly cheaper and easy to manage.
Apple Is Expanding Other App Store Tools
Apple is responding to the changing environment by adding business models and marketing systems that can keep developers using its commerce platform.
Monthly subscriptions with a 12-month commitment allow participating apps to offer lower recurring payments while securing a complete year of revenue.
The Advanced Commerce API supports more complex content catalogs, optional add-ons and subscription structures that were previously difficult to manage through standard In-App Purchase products.
Apple has also expanded tools for custom product pages, promotional offers, application analytics and international distribution.
These additions increase the value attached to App Store billing. A developer may tolerate a commission when Apple provides conversion tools, subscription management and access to promotional placement that would be expensive to reproduce independently.
The company can also adjust rates for particular categories. The Small Business Program, Mini Apps Partner Program and reduced commission for longer-running subscriptions already demonstrate differentiated pricing.
A more competitive payment market may push Apple toward additional service tiers rather than one universal commission.
The UK Could Create the Next Material Change
The United Kingdom’s Competition and Markets Authority is consulting on rules that would allow developers to direct customers outside Apple and Google’s payment systems.
The regulator expects any fee charged for steering to be fair, reasonable and lower than current app-store commissions. It wants the resulting savings passed to customers or reinvested in developer businesses.
The UK proposal is not yet a final requirement. Its eventual structure could determine whether developers receive the broad freedom available in the United States or a fee-based model closer to some European arrangements.
Regulators are also considering app-review fairness, interoperability and access to mobile-platform capabilities.
The outcome will matter beyond British customers. Each major jurisdiction creates another model that regulators elsewhere can examine when designing their own rules.
Apple must decide whether to continue maintaining different commercial systems by country or move toward broader global terms that reduce operational complexity.
Developers face the same choice. Supporting a separate payment route, marketplace package and reporting process for every region can become expensive enough to cancel some of the benefits regulation intended to create.
The next evidence will come from behavior rather than another policy announcement: how many major apps add external payment links, whether they offer lower prices and how quickly customers move away from Apple’s checkout.
What sets Pastebot 3 apart is its addition of deep automation tools. Not only does the update add MCP support, making it an excellent tool to use with Claude or ChatGPT/Codex, but it includes a brand new CLI that you or an agent can use from Terminal or incorporate into scripts you build.
[…]
New filters have been added that allow you to transform clippings using text transformations and even shell scripts. Using the ability to script custom filters, I’ve begun adding a few of my own to Pastebot for things like adding and removing bullets from multiple lines of text.
I’ve long been aware of this app but hadn’t paid much attention because I’m happy using LaunchBar as my clipboard and snippet manager. LaunchBar has some transformations built-in, and I’ve built up a collection of my own scripts, but it’s appealing that Pastebot comes with so many out of the box.
From Pastebot’s main UI, you can select multiple items at once and right-click to add them to a Stack, or you can pick them one at a time in any order you’d like. As you select items, they’re numbered in the order you’ll paste them into a document using a keyboard shortcut. It’s an excellent feature for filling out forms or copying data from one spreadsheet to another.
There are also rule-based Smart Pastebins for automatic organization, like every link or image copied from Safari. Smart Pastebins can be filtered by clipping size, type, file extension, creation date, text, text length, and more. Multiple parameters can be combined for detailed filtering, and custom notes can be added to clippings to make them easy to find via search.
[…]
Tapbots says Pastebot 3 was built to work with Apple's Universal Clipboard feature, and when enabled and active, anything you copy on your iPhone is saved in Pastebot automatically.
Importantly, Pastebot 3 requires macOS 26 Tahoe or later and comes with a 14-day free trial. Users can buy the app directly from Tapbots for $39 or subscribe through the App Store for $2.99 per month or $24.99 per year.
[…]
The direct purchase includes one year of updates, with additional years available for $19 each. Users who stop paying for updates can continue using the latest version covered by their purchase. Pastebot 2 owners can also get a $12.99 upgrade discount by entering their existing license key at checkout.
They are not offering any upgrade path for MAS customers. The reason they stated was “upgrade pricing has always been our way of thanking people who bought directly from the site.”
I generally try to avoid complaining about App Store review, since I do think they have a really hard job to do. But I’m about 2 more PB3 rejections from just giving up.
Apple is still pulling in massive amounts of money from its services division, but the numbers recently fell slightly short of Wall Street’s lofty expectations. The technology giant reported a strong $30.7 billion in services revenue for the quarter, marking a healthy 12 percent jump from the same time last year. However, analysts expected slightly […]
Softness in mobile gaming and Apple's changes to the App Store business model in some countries impacted the performance of the App Store, Apple CFO Kevan Parekh said during today's earnings call.
Apple's services revenue was $30.7 billion, a 12% increase over the $27.4 billion it earned in the year-ago quarter. Though the category saw growth, revenue came in under expectations, prompting analyst questions that led to Parekh's comments on the App Store.
We also had some factors that impacted the performance of the App Store. We did see some headwinds in mobile gaming, and then keep in mind, we also made some changes to the App Store business model in certain countries, and in the U.S., we do continue to operate under a court ruling impacting the link-out transactions. But we're pleased the Supreme Court will hear our appeal.
There have been App Store fee updates in Japan and Brazil as of late, with Apple collecting no fees on link-outs in the U.S. and lower fees from alternative app marketplace apps in the EU. Despite the rule changes, the App Store still set a June quarter revenue record. Apple saw double-digit growth in cloud services, video, payment services, and advertising, with a record level of Apple Pay users.
During the call, Apple also said it now has 1.5 billion paid subscriptions, with transacting and paid accounts hitting an all-time high.
Parekh said it wasn't the App Store alone that impacted services revenue, and Apple also took a hit from foreign exchange. Last year, Apple also had the theatrical release of F1, and no equivalent release this year, making for a tougher compare.
Services growth in the September quarter is expected to be similar to the June quarter when excluding an approximately 2.5 percentage point foreign exchange headwind.
Released less than a month ago by an unknown developer, Chrome Browser Default has somehow become a top download in the United States Mac App Store, alongside well-known developers Amazon, WhatsApp/Facebook/Meta, and Microsoft[…]
[…]
Chrome Browser Default is the top search result for “Google Chrome” in the Mac App Store. Chrome itself is distributed as a direct download from Google, outside the Mac App Store. Notice also that the Chrome Browser Default app icon resembles the Google Chrome app icon[…]
Both the name and icon violate Apple’s guidelines, and the preview images are not actually screenshots of the app. The App Store is great for distributing apps that piggyback on the names of popular apps. They’d be hard to find with a regular Web search, but in the App Store they appear at the top.
The app appears to do what the description says it does, though it’s quite primitive and likely vibe-coded. I can add rules, but I couldn’t find a way to edit or delete added rules, which is ridiculous. The developer’s privacy policy is on GitHub in a repository where most of the commits were co-authored by Claude.
[…]
At the bottom is a section that shows, allegedly, what “People are Saying” about the app. Yet none of these 5-star reviews are from the App Store. According to Google Search, the reviews are not from anywhere on the web.
This app is no longer available in the Mac App Store.
[…]
I have no idea why the Dutch name “Standaard Browser Wisselen” appears in the alert, because the App Store Purchased section says “Chrome Browser Default,” and my only Mac system language is English (US). The name of the developer in the App Store was Chinese, 立花 卢.
[…]
My suspicion is that Apple, not the developer, removed the app from the App Store, which explains why I can’t download it. Whether this removal was triggered by my blog post or by App Store user reports, I don’t know.
Doesn’t say amazing things for the Mac App Store that I find it faster to search for something in a search engine than within the MAS itself. And that’s when I already know the name of what I’m looking for.
Brazilian users browsing the App Store rankings in categories such as Navigation, Travel, and Weather have noticed a growing number of poorly made games appearing among the top results, many of them featuring AI-generated illustrations of animals as their app icons. Many carry an AL age rating, making them available to users of all ages, including children.
As it turns out, these are so-called jacket apps, which are just a front for hidden betting and gambling apps.
[…]
The repository also includes explicit instructions intended to prevent the apps from being flagged as suspicious during App Store review. These include giving each app uniquely named startup and remote-configuration codes, making it harder for reviewers to identify them as part of the same group.
Ironically, the App Store’s own recommendation system appears to have little trouble grouping the apps together, as the “You Might Also Like” section on several of these apps points users toward other suspicious apps more frequently than they point to genuine apps.
Obviously the main problem is that these apps disguise themselves Trojan Horse-style, and slip through App Store review undetected. I don’t think it’s reasonable to think App Store review could catch every attempt at this sort of thing though — if the horses are disguised well-enough, some of them are going to slip through. That’s actually fine.
I agree that it’s unreasonable to expect App Review to catch all those, but then Apple should not be pretending that it can. This was all obvious from day one. The public perception of App Review is completely at odds with what it actually can and does do.
But the first example 9to5Mac cites isn’t well disguised at all. What sense does it make that “PotatoPlot Puzzle” — a game featuring a rabbit potato farmer — is a weather app? How is that not a red flag right there?
[…]
I always mention that the point of such a squad shouldn’t be to make the App Store 100 percent scammer-free — which I believe is an impossible goal that would set the team up for failure. The point should be only to make the App Store free of successful scams. Focus on the most popular apps and the most lucrative apps.
The App Store is more than 18 years old. The idea of patrolling the top charts probably occurred to Apple before it even shipped. They just don’t want to do it.
Apple only took 24 hours to approve my iOS app update that crashed instantly on launch. Such a blessing to have that extra level of reliability and security that only a manual review process can provide 🙏
Incidentally, the crash was due to a missing dylib - something that could easily have been detected by the automated scan process, if only that scan were designed to protect users’ and developers’ interests instead of Apple’s.
There is simply no other way to maintain a modern, healthy software ecosystem without making sure that apps that have been around for 7 years and 20 major versions can’t get a build looked at within 48 hours. There’s no other way. Probably needs to be longer, honestly.
I had to file an Expedited Review Request because this update is a legitimate emergency. Four hours later, App Review rejected the build because they didn’t follow the first sentence of the testing instructions (which haven’t changed in 7 years). Back to Waiting for Review! There’s no other way.
We got rejected in the Expedited Review again, this time for not having an account deletion feature. Except we do, and it’s one button press away from the screen that the reviewer was on. And it has always existed. Is this how the expedited review works? Malicious incompetence?
If you were wondering how long one of the “you can ask us to approve this build and can fix this issue in the next release” App Review errors takes to resolve when you’re in the Expedited Review Queue… me too! So far, 18 hours. (Ignoring the fact that we have the feature the rejection was for.)
Apple is facing a new lawsuit accusing the company of allowing a fraudulent Bitcoin wallet app to remain on its App Store for more than a week after users reported significant losses.
According to the complaint, three individuals collectively lost approximately $1.84 million after downloading an app that impersonated the legitimate Sparrow Wallet. The victims entered their Bitcoin seed phrases into the fake application, enabling scammers to drain their funds. One plaintiff reported losing $875,000, while another lost $840,000; the delay in removing the app after the first report allegedly contributed to further losses.
The lawsuit claims Apple’s marketing and App Store presentation led users to believe applications available on the platform undergo careful vetting and are safe. Plaintiffs allege the company ranked the fraudulent app and even included it in curated cryptocurrency app collections alongside genuine Bitcoin wallets. The legal action accuses Apple of violating consumer-protection laws, engaging in fraudulent and negligent misrepresentation, and failing to adequately warn consumers about risks.
This is not the first time Apple has faced similar claims. In 2021, cryptocurrency holders sued the company over a fake wallet app scam; that case was ultimately dismissed by a federal judge.
Apple has stated that it has removed apps impersonating Sparrow Wallet from the App Store and terminated the associated developer accounts.
MacDailyNews Note: The plaintiffs are seeking reimbursement of the stolen assets along with compensatory and punitive damages.
Please help support MacDailyNews — and enjoy subscriber-only articles, comments, chat, and more — by subscribing to our Substack: macdailynews.substack.com. Thank you!
Matt Corey, the maker of Bills to Budget and Signals, has organized indie developers for a big sale that runs from July 28 - 30. The sale includes over 200 apps that will be offered at a discount through Thursday. The list is too long to publish here, but it includes many apps we’ve covered here on MacStories and on Club MacStories in the past, including:
There are a lot of great deals, with many apps discounted 50% or more. What’s listed above is a small fraction of the participating apps, so be sure to visit Indie App Salesand support these great indie apps.
The complaint alleges that Apple violated California’s Consumers Legal Remedies Act and other laws by failing to adequately review and monitor apps distributed through the App Store, despite marketing it as “a safe and trusted place to discover and download apps.” Due to these assurances in Apple’s marketing, the complaint said the plaintiffs trusted that a Sparrow Wallet app they downloaded from the App Store on iOS was legitimate, when in reality it was a fraudulent spoof designed to steal Bitcoin from users.
Sparrow Wallet is only available on Windows, macOS, and Linux. The popular Bitcoin wallet is not available on iOS, but scammers have released fake lookalike apps in the App Store that can trick users into giving up control of their funds.
[…]
Even when victims reported fraud, the lawsuit alleges that Apple often took little to no action, and it says other fake Sparrow apps remain in the App Store.
Sparrow Wallet developer Craig Raw has publicly addressed Apple’s slow response to multiple fake versions of his app appearing in the App Store. In a January 2024 social media post, for example, he said “there is still a scam ‘Sparrow Wallet’ app on the @Apple App Store, despite myself and others having reported it weeks ago.”
My attempt to protect users from scam apps on the
@AppStore
has gotten my Apple Developer account flagged for termination - ironically, for “dishonest activity”.
[…]
I’m the developer of the real Sparrow Wallet, a desktop app, and I hold the registered US trademarks for the name and logo. I have publicly warned
@Apple
and the community about these fake apps from early 2024, but they keep appearing.
The app
@Apple
flagged was a placeholder that was never published. Its only purpose was to warn users that Sparrow is desktop-only and that other “Sparrow” apps aren’t mine. This approach may have been misguided, but there was nothing dishonest about it.
In response to our request for comment, Apple said it has taken swift action to remove any apps impersonating Sparrow Wallet[…] Apple says it takes immediate action against apps that do not comply with its guidelines.
The complaint targets one of Apple’s longtime competitive arguments: that its tight control over its App Store makes its platform safer than those offered by its rivals. The company has used this claim to push back against deregulation of the app ecosystem, including third-party app stores and sideloading.
“As part of a sustained marketing campaign, Apple has positioned itself, its products and services, as offering a level of security and trustworthiness superior to any competing technology company,” the new filing states. “This includes assurances about the safety of applications distributed through its App Store. By retaining exclusive control over which apps are permitted on Apple devices, Apple has structured its platform to ensure that consumers depend entirely on its promise of safety and reliability,” it reads.
With third-party app stores, there would be an incentive to do better vetting than Apple, and with sideloading it would be clear that the app was not being downloaded from sparrowwallet.com.
What struck me about Apple’s response is that it places the burden of curating the App Store on developers and users rather than taking responsibility for it. After all, Apple reviews every version of every app before it can be published to the App Store. If Apple is curating the App Store, then why do scams have to be reported and removed? One wonders how the scams get past Apple review in the first place, and even if Apple review “is not perfect” (a gross euphemism), how the second line of defense, Apple employees patrolling the App Store for scams that the review team missed, also fails. The burden of App Store curation should not fall to me, a lone indie developer.
Apple’s response also ignores that the indie developer did report the scams, multiple times.
Although you can hide and unhide apps in your App Store purchase list, it turns out that hiding an app in the App Store purchase list does not hide the app in the updates list! I honestly can’t figure out the benefit of hiding an app in the App Store. The list of your purchased apps—a misnomer, as the list includes free apps—is practically unusable anyway: you can neither sort nor search the list. Maddeningly, the Mac App Store sorts your purchased apps by date of first install rather than by name, so it’s difficult even to scan the list manually to find a specific app.
[…]
You can clear the Updates list in the Mac App Store by deleting some cache files on disk, but that’s at best a momentary solution. The unwanted update will return eventually, or immediately if you use the Reload Page (⌘R) command.
A more lasting solution is, counterintuitively, to install the update. The trick is that you can keep more than one copy of a Mac App Store app on disk.
I wonder how long you can keep using the old version. You won’t be able to download it again. You can save a backup, but as some point a certificate will expire or you’ll get a new Mac and need a new receipt file. In theory, the store should be able to fetch one for you, but I wouldn’t rely on that long-term.
Kalley Huang, writing for The New York Times about apps written with the help of AI agents that are flooding the App Store:
But as with many things A.I., just because something is easy to build doesn’t mean people will use it. It is not clear if vibecoding is breathing new life into the App Store or just cluttering it.
Last year, the number of new apps released in the App Store grew 30 percent to about 600,000, according to estimates by Sensor Tower, an app analytics firm. In the first half of this year, new apps doubled to about 560,000.
Now, Sensor Tower metrics should always be taken with a grain of salt. They don’t have direct access to Apple’s sales data, so they’re extrapolating from incomplete data that they collect themselves. That said, I think it’s fair to take their numbers as broadly representative of sales trends over time, and the story they tell, as reported by Huang, is interesting.
Based on Sensor Tower’s numbers, the total number of App Store releases peaked in 2016 at 890,000, hit a low of 420,000 in 2022, and this year, is on pace to pass 2016’s peak by a healthy margin. But app releases don’t equate to downloads, let alone sales. According to Huang’s reporting, downloads increased 3% in 2025 and 2% in the first half of 2026, far lower than the growth of new releases.
All of this tracks closely with what we’ve seen at MacStories. One subtle trend I’d add is that whereas for years most developers contacted us before they released an app, a lot of new developers are doing so after their apps are on the App Store. I suspect what I’m seeing is a new generation of developers learning the hard discoverability lessons of the App Store for the first time because when I check out these apps, they rarely have any App Store reviews.
The upshot of all these statistics and trends is App Store chaos of a magnitude that we haven’t seen in a long time. It’s a little like the App Store gold rush of the early days, but without the gold. Discoverability has gone from bad to worse, and the supply of apps is off the charts compared to the demand. With download numbers barely creeping up, the flood of new apps is making selling on the App Store harder for everyone.
Yet, it’s exactly this sort of chaotic disruption that leads to exciting new apps. And, it’s tools like Codex and Claude Code that empower and democratize app development, allowing people who would never have built an app to see their ideas become a reality. Those are things I love to see.
There’s no doubt that the App Store is out of whack thanks to agent-assisted coding, but like any market it will find its equilibrium again. In the meantime, it’s never been a better time to be a fan of apps because while a lot of those record numbers are comprised of mediocre apps, there are hidden gems, and we’re on the hunt for them.
Apple has begun removing AI-powered “nudify” apps from its App Store after San Francisco City Attorney David Chiu issued cease-and-desist letters to both Apple and Google, accusing the platforms of facilitating harmful non-consensual intimate imagery.
The letters targeted approximately 13 face-swapping and image-altering apps that use artificial intelligence to digitally remove clothing from photos, creating fake nude or explicit images without the subject’s consent. Chiu argued that the apps violate consumer-protection laws and enable the spread of deepfake pornography, often targeting women and minors.
In response, Apple in a statement reiterated its longstanding policy prohibiting apps that generate or promote explicit non-consensual content. “Nudification apps are against our App Review Guidelines and we have proactively rejected many of these apps and removed many others,” the company said. It confirmed the removal of three apps identified in the letter, the termination of their developers’ accounts, and ongoing outreach to four additional developers who must address violations or face removal.
This action follows earlier reports highlighting the persistence of such apps despite Apple’s rules. In 2024 and earlier in 2026, investigations revealed that “nudify” tools continued to appear or be advertised in the App Store, prompting criticism over enforcement gaps. Apple has since taken down batches of violating apps after external reports and user flags.
The San Francisco order gives Apple and Google 28 days to respond and fully address the issue, with potential civil penalties for non-compliance. Advocates have praised the move as a step toward curbing AI-enabled abuse, while noting that similar tools can still proliferate on the open web or through sideloaded software.
Apple’s latest enforcement underscores growing pressure on tech platforms to prevent their stores from becoming distribution channels for tools that weaponize AI against privacy and consent.
MacDailyNews Take: Users are encouraged to report suspected violating apps directly through the App Store via Apple’s “Report a Problem” page: https://reportaproblem.apple.com
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However, there are two important lessons here for app developers and online communities:
