A new email app called "Hey" was recently released on the App Store. Now the new application is threatened with removal. The reason: a lack of in-app purchases.
On Monday, a new email service called "Hey" from Basecamp was released. The app costs around $99 per year. However, the subscription cannot be purchased via in-app purchases, but only through the provider's website, and this could now pose a problem. Apple reportedly informed the development team that the app would be removed from the App Store if they did not implement an in-app purchase option. The Basecamp team, however, rejected the request, as they do not want to pay the 15 or 30 percent fees.
Violation of point 3.1.1 of the Apple guidelines
Basecamp co-founder and CTO David Heinemeier Hansson shared details of the current situation on Twitter this afternoon and offered further information in an interview with Protocol. The original version 1.0 of "Hey" was approved for the App Store. However, when Zach Waugh, Basecamp's lead iOS developer, submitted version 1.0.1 with bug fixes, it was rejected by the App Store Review Team. The reason for this is a violation of point 3.1.1 of Apple's guidelines—the lack of an in-app purchase option. Specifically, these guidelines require developers to implement Apple's internal billing system when app users can purchase digital goods or subscriptions. This involves paying Apple 15 to 30 percent of the fees (30 percent in the first year). However, Basecamp refuses to pay this share and wants to emulate subscription services like Netflix and Spotify. Now Apple is threatening to remove the application from the App Store. The post states:
The Apple reviewer said he was calling because the new app didn't resolve the Rule 3.1.1 issue. The issue had been escalated internally and Apple had determined it was a valid rejection - the only way to move forward would be to implement Apple's payment system. And not only that: Waugh was told that Apple wants a commitment and a timeline for implementing the payment system, otherwise Apple could be forced to remove Hey from the App Store entirely.
“This is obscene and criminal”
After the call, a somewhat friendlier email from Apple is said to have arrived just a few hours later. It states:
We noticed that your app allowed customers to access content, subscriptions, or features they purchased elsewhere, but those items weren't available as in-app purchases within the app." Because Hey didn't qualify as a "reader" app, Apple said existing subscribers could log in as usual, but Hey must make all subscriptions available to new users as in-app purchases.
But the Basecamp team says they have no intention of complying with Apple's demands. What's more, Heinemeier Hansson explained:
There is no way in a million years that I am paying Apple a third of our revenue. This is obscene and criminal and I will spend every dollar we have or ever make burning this down until we get to a better place.
Hansson has been a vocal critic of Apple and other major technology companies in the past. He even testified before the US Congress at a hearing on anti-competitive technologies earlier this year. So the further development will certainly remain exciting. Anyone who wants to test the app can still download – it remains to be seen how long this will be the case. (Image: Basecamp)
