February 28, 2024
Hey CEO Responds to Apple Rejection Letter: It's Not Just About Money, It's About the Absence of Choice

Hey CEO Responds to Apple Rejection Letter: It's Not Just About Money, It's About the Absence of Choice

Posted June 20, 2020 at 3:16pm by iClarified
Jason Fried, CEO of Basecamp, the makers of HEY, has responded to Apple's recent rejection letter demanding they offer their subscription as an in-app purchase.

In a post on Hey.com, Fiend says while Apple's 30% cut is an issue, it's only part of the problem.

Money grabs the headlines, but there’s a far more elemental story here. It's about the absence of choice, and how Apple forcibly inserts themselves between your company and your customer.

Fiend says that in-app subscriptions essentially hands customers over to Apple, resulting in the company being unable to assist with numerous issues.

1. When someone signs up for your product in the App Store, they aren’t technically your customer anymore - they are essentially Apple’s customer. They pay Apple, and Apple then pays you. So that customer you’ve spent years of time, treasure, and reputation earning, is handed over to Apple. And you have to pay Apple 30% for the privilege of doing so!

2. You can no longer help the customer who’s buying your product with the following requests: Refunds, credit card changes, discounts, trial extensions, hardship exceptions, comps, partial payments, non-profit discounts, educational discounts, downtime credits, tax exceptions, etc. You can’t control any of this when you charge your customers through Apple’s platform. So now you’re forced to sell a product - with your name and reputation on it - to your customers, yet you are helpless and unable to help them if they need a hand with any of the above.

Fiend continues to detail other issues with forced in-app subscriptions, including the inability to integrate with internal billing systems and the movement of a customer from iOS to another platform like Android. You can read the full post at the link below.

Apple's App Store practices are currently being investigated by the European Commission and the House Antitrust Subcommittee. Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for updates.

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Hey CEO Responds to Apple Rejection Letter: It's Not Just About Money, It's About the Absence of Choice
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herojig - June 21, 2020 at 2:22am
I agree. It must suck to be a developer these days. Yet, Apple Users benefit from the app store by 1) convenience of shopping, 2) easy installation and 3) easy updates - this across all apps on all devices owned. Those three bennies alone outweigh any problem developers have with the store.
islamfarouk - June 21, 2020 at 9:16pm
Absolutely agree + it is their platform, data centers, hardware, operating system, etc.
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