Amazon, Google Remove In-App Buttons to Comply with Apple Rules

Imagine, for a moment, that with the Windows 8 launch, Microsoft decided to instate a rule that would allow it to take a 30% cut of any third-party software sale. It seems silly, and such a move would no doubt raise prices of software all-around – but this is how things are done in the mobile space. Because we’re used to such low app prices on such devices though, these ‘cuts’ are not often thought about.

Now imagine that you had to purchase an Amazon Kindle application that would allow you to both read and purchase Amazon’s large collection of books. Imagine if Microsoft wanted to take an additional 30% for each one of those books purchased this way. Would this be going too far? If you were to ask Apple, its answer would be “no”, and it has the proof to back it up.

Due to a recent reiteration of its app guidelines this past February, Apple instated a rule that applications could not have buttons designed to bring users to the Internet in order to make a purchase of some product. The reason is simple. Apple isn’t content taking a 30% cut of each app sold, but also seeks future revenue from purchases made through such apps. While an Amazon Kindle app may be free, each book you would purchase would see 30% of what you pay go straight to Apple’s pockets.

In response to Apple’s enforcing of the new rule, Amazon, Google and Rhapsody have all complied and updated their respective applications to remove their in-app purchase buttons. While this may at first seem like compliance with Apple’s rule, it would in fact generate the same, or less revenue for Apple as a whole. Without these buttons, in-app purchases would not be made, and thus Apple would still not see revenue.

A loophole would be for a user to purchase a Kindle book through Amazon’s website through an iPhone browser or a PC, and then sync it to the phone. In reality, Apple’s new rule wouldn’t be hard to work around, and seemingly the only way the company could prevent any such loophole would be to ban Amazon and co’s respective apps. This would be unlikely to happen, however, as it could raise some serious legal issues, namely one of monopoly.

What do you guys think? Is Apple right to want to charge 30% on every single item purchased through an iPhone or similar device? Should it be expected?