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Apple’s Warnings About Third-Party Payments Aren’t New, but Must Change

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Even though the European Commission (EC) fined Apple €500 million last month over its anti-competitive App Store practices, the tech giant is still sending “scare notices” to users who opt for third-party payment methods.

One of the EC’s concerns was that Apple was actively dissuading users from using alternative payment channels. In one specific complaint, developers who implemented payment methods outside of Apple’s in-app purchase system were required to display warning messages—commonly referred to as scare screens—that discouraged users from continuing. Apple was given 60 days to “remove the technical and commercial restrictions on steering” or face additional fines.

Nevertheless, Apple still appears to be warning users not to use iOS apps that support alternative payment options by making them look scary. A blogger found that the App Store listing for Instacar, a Hungarian used-car app, had a big red exclamation mark alongside a message cautioning users that it doesn’t use Apple’s “private and secure payment system.”

An Old Message

The issue gained attention this week after someone posted the Instacar screenshot on X. However, the warning message has actually been in place since Apple started complying with the EU’s Digital Markets Act in March 2024.

Apple did propose changing the warning banner—replacing the red exclamation mark with a less alarming information icon and slightly altering the message—but the EU has yet to approve the updated design. In a response sent to TechCrunch, Apple confirmed that it still intends to implement the change. 

Part of the delay may stem from Apple’s ongoing appeal of the EU’s decision and fine. While some suspect the warnings are a form of retaliation by Apple, it may simply be that the company hopes a victorious appeal will allow it to avoid redesigning the warning screens altogether.

The Battle With Epic

Apple has been facing heightened scrutiny over these screens in the U.S. as well. A similar ruling by an American court bans Apple from restricting how developers can link to alternative purchase systems, specifying that the company can’t interfere with consumers choosing to leave an app with anything beyond a neutral message about being directed to a third-party site.

That ruling resulted from a dispute between Apple and Epic Games, maker of the popular game Fortnite. Fortnite says it has submitted two requests to have the game reinstated in the App Store, but Apple has yet to accept them.

The post Apple’s Warnings About Third-Party Payments Aren’t New, but Must Change appeared first on PaymentsJournal.

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The Local Luminary is your dedicated guide to uncovering the stories, strategies, and successes of standout local businesses. With a passion for community growth and a knack for highlighting what makes businesses thrive, The Local Luminary connects you with actionable insights to boost your own business visibility and growth.

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The Local Luminary
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