Apple pressures email app 'Hey' to integrate in-app purchase option [u]

The Apple-Hey Standoff: A Direct Challenge to App Store Authority

Apple has halted updates for the newly launched email client Hey and is threatening its removal from the iOS App Store, creating an immediate and public clash over the platform's rules. The core issue is Hey's model: it requires a $99 annual subscription purchased solely on its website, deliberately bypassing Apple's in-app purchase system and its associated 15-30% commission.

This enforcement action, targeting an app from the respected team behind Basecamp, signals Apple's firm stance on monetization. "Apple has firmly reiterated their rejection of HEY's capacity to roll out bug fixes unless we concede to their demand for 15-30% of our revenue," tweeted Basecamp co-founder David Heinemeier Hansson. The conflict erupted just days after Hey's launch, with Apple approving version 1.0 but then rejecting subsequent updates containing critical bug fixes, effectively freezing the app's development on iOS.

Decoding App Store Rule 3.1.1: The Mandate for In-App Purchases

Apple's position is anchored in section 3.1.1 of its App Store Review Guidelines, which mandates that apps offering digital goods or services must use Apple's own in-app purchase system. This framework is designed to be "simple and safe," handling billions of transactions annually with end-to-end payment processing. For developers, configuring this involves creating In-App Purchase products in App Store Connect—be they consumable, non-consumable, or subscriptions—and implementing them using the StoreKit framework within their app.

A Seamless System with a Steep Cost

While Apple promotes this as a turnkey commerce solution, the cost is significant. The standard 30% commission on initial subscriptions (reducing to 15% after the first year) represents a major revenue share that services like Hey are built to avoid. The technical setup, though documented, involves a multi-step workflow: accepting the Paid Apps Agreement, designing the purchase experience, configuring products in App Store Connect, implementing StoreKit in code, and rigorous testing in sandbox environments before submission for review.

The "Reader" App Exemption: Why Hey Doesn't Make the Cut

A critical nuance in this debate is the "Reader" app exception. Apple's guidelines allow apps like Netflix or Spotify to let users access content from pre-existing subscriptions without offering in-app sign-ups, as they primarily offer access to previously purchased content or subscriptions. However, Apple's reviewers determined Hey does not qualify for this exemption.

Unlike Netflix, which redirects users to a web page to sign up, Hey requires account creation on its site as the only entry point. Apple contends this makes Hey a consumer service that must transact within its ecosystem. Basecamp argues this interpretation is overly restrictive for a tool that functions similarly to a web-based productivity service, highlighting the subjective and often opaque nature of App Store rule enforcement.

Technical and Economic Hurdles for Independent Developers

For a small team, integrating in-app purchases is not merely a flip of a switch. It requires significant development resources. Implementing StoreKit in SwiftUI, for instance, involves managing complex asynchronous states, receipt validation, and ensuring a seamless user experience—challenges that are daunting enough that third-party SDKs exist to simplify the process. Adding this layer for Hey would mean overhauling its sign-up flow and, more importantly, surrendering a substantial portion of its per-user revenue to Apple indefinitely.

Heinemeier Hansson's stance is unequivocal: "There is absolutely no way I am going to pay Apple a third of our revenues, now or ever." This resistance underscores a growing sentiment that the 30% fee is prohibitive for subscription-based businesses with thin margins, potentially stifling innovation by making direct-to-consumer models untenable on the world's most lucrative mobile platform.

Broader Implications: Antitrust Scrutiny and Developer Relations

This confrontation does not exist in a vacuum. It unfolds as Apple faces formal antitrust investigations by the European Commission examining its role as a "gatekeeper" and its treatment of rival services like iCloud. In the United States, CEO Tim Cook has been called to testify before Congress on App Store policies. Heinemeier Hansson himself highlighted these issues in testimony earlier this year, contrasting Apple's supportive public rhetoric with what developers often experience as oppressive enforcement.

Critics, including Spotify's CEO, have long argued that Apple's control over the iOS ecosystem and its dual role as platform owner and competitor (with services like iCloud and Apple Music) creates an unfair marketplace. The Hey case exemplifies this tension, where Apple's rules are seen not as neutral governance but as a tool to protect its revenue streams, even at the cost of hampering third-party apps.

Innovation at a Crossroads: The Future of App Store Economics

The standoff between Apple and Hey represents a fundamental conflict over who controls the economic relationship between apps and their users. Apple's ecosystem undeniably provides massive reach and streamlined payment infrastructure, but at a price that some developers deem extortionate. As antitrust pressures mount and developer dissent grows louder, the very model of the App Store is being questioned. The outcome of this specific battle may force a reevaluation of commission structures or the clarity of "Reader" app definitions, potentially paving the way for a more nuanced approach that balances platform sustainability with fair competition and genuine software innovation on a global scale.