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Developers and Platforms React as App Store Rules Change in the U.S.

On Wednesday evening, Judge Yvonne Gonzalez Rodgers held Apple in contempt, ordering, among other things, that it immediately drop the 27% fee it was charging developers who linked users to the web for purchases. As the judge put it:

This is an injunction, not a negotiation. There are no do-overs once a party willfully disregards a court order. Time is of the essence. The Court will not tolerate further delays.

(Contempt Order at pg. 3).

As Chance Miller reported at 9to5Mac, those changes are already reflected in Apple’s App Review Guidelines. In an email sent to anyone with a developer account, Apple explained:

The App Review Guidelines have been updated for compliance with a United States court decision regarding buttons, external links, and other calls to action in apps. These changes affect apps distributed on the United States storefront of the App Store, and are as follows:

  • 3.1.1: Apps on the United States storefront are not prohibited from including buttons, external links, or other calls to action when allowing users to browse NFT collections owned by others.
  • 3.1.1(a): On the United States storefront, there is no prohibition on an app including buttons, external links, or other calls to action, and no entitlement is required to do so.
  • 3.1.3: The prohibition on encouraging users to use a purchasing method other than in-app purchase does not apply on the United States storefront.
  • 3.1.3(a): The External Link Account entitlement is not required for apps on the United States storefront to include buttons, external links, or other calls to action.

(Source: Apple email to developers on May 1, 2025).

Notably, the changes affect only the U.S. App Store, further fragmenting App Store rules along geopolitical boundaries which began with regulations in China, South Korea, Japan, the Netherlands, and the EU.

Probably the best evidence that Apple’s former rules were restraining competition is the flurry of additional news since Judge Gonzalez Rodgers’ ruling:

  • As I predicted in my story, Patreon has said it will submit an update to its app to allow creators to accept payments outside its iOS app, something that was possible until last summer when Patreon was forced to retrofit its app to account for Apple’s In-App Purchases and payments through its website in what was an inelegant solution that forced creators to either charge more on iOS or absorb Apple’s fees on what are often small monthly payments to begin with.
  • Spotify posted on its blog that it has already submitted an update to its app that will let users see how much a Spotify subscription costs from inside the app and link out to Spotify’s website to upgrade or change their subscription plans.
  • Payment processor Stripe whipped up documentation guiding developers through the process of setting up subscription and digital goods sales outside their apps.
  • Beginning in June, the Epic Games Store will handle payment processing for developers at no cost up to the developers’ first $1 million of revenue. After $1 million of revenue the split will be the existing 88% to developers and 12% to Epic Games. In June, Epic Games will also offer developers the ability to set up their own webshops for ‘out-of-app purchases.’ The webshops will be available to iOS developers in the U.S. and EU and users making purchases in them will get 5% back in Epic Rewards for their purchases. Epic Games has not said how much it will charge developers who set up a webshop.

These moves by big players aren’t surprising, and I’m sure we’ll see more companies explore ways to take advantage of Wednesday’s ruling. Over time, though, the more interesting consequence of Wednesday’s ruling will be whether and how it changes the business models of indie developers and other small businesses that offer apps.

Apple Reports Q2 2025 Financial Results

Today, second-quarter 2025 earnings are out and Apple reported record revenue of $95.4 billion, a 5% year-over-year gain. The diluted earnings per share was $1.65 an 8% year-over-year gain.

Tim Cook had this to say:

Today Apple is reporting strong quarterly results, including double-digit growth in Services. We were happy to welcome iPhone 16e to our lineup, and to introduce powerful new Macs and iPads that take advantage of the extraordinary capabilities of Apple silicon. And we were proud to announce that we’ve cut our carbon emissions by 60 percent over the past decade.

These results, which beat Wall Street expectations, may strike some as odd given the overhang of tariffs on goods entering the U.S., but it’s the threat and delays that have caused consumers to accelerate purchases, pulling sales into the last quarter that might have been deferred otherwise. It’s a little like COVID, which caused a similar tech purchasing spree. However, sales pulled into the last quarter are sales that won’t be made later, especially if the U.S. government follows through and imposes tariffs on Apple products.

Another threat to future earnings is the decision by Judge Yvonne Gonzalez Rodgers. That decision has the potential to upend the dynamics of the App Store, but it’s going to take a while before any effects are felt in earnings because, as the Court found, few developers currently offer links to goods outside the App Store.

So, for now, Apple’s earnings are good and its stock price is stable, but the threat of tariffs and the disillusionment of developers are very real storm clouds on Apple’s horizon that very well may have a negative impact on its future earnings. Come back in three months to see what happens.

A Breach of Trust: Apple Held in Contempt Over App Store Rules

Late yesterday, U.S. District Judge Yvonne Gonzalez Rodgers issued a blistering opinion, concluding that Apple had willfully disregarded the Court’s 2021 injunction, which found that the anti-steering provisions of the App Review Guidelines violated California state law. Judge Gonzalez Rodgers also referred Apple’s conduct to the U.S. Attorney to investigate whether criminal prosecution of the company and one of its employees is warranted. For its part, Apple has said it disagrees with the decision and will appeal, but it will comply with the Court’s order in the meantime.

If that all sounds like it’s a big deal, that’s because it is. Judge Gonzalez Rodgers’ 80-page opinion and order don’t pull any punches, painting a damning picture of Apple’s response to the Court’s injunction. It’s a unique and unflattering look behind the curtain at how Apple responded to the Court’s 2021 order that’s worth looking at more closely.

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Sundar Pichai Testifies That He Hopes Gemini Will Be Integrated into iPhones This Fall→

Ever since Apple announced its deal to integrate ChatGPT into Siri, there have been hints that the company wanted to make deals with other AI providers, too. Alphabet CEO Sundar Pichai has added fuel to the rumors with testimony given today in the remedy phase of the search antitrust case brought against it by the U.S. Department of Justice.

In response to questions by a DOJ prosecutor, Pichai testified that he hoped Google Gemini would be added to iPhones this year. According to a Bloomberg story co-authored by Mark Gurman, Davey Alba, and Leah Nylen:

Pichai said he held a series of conversations with Apple Chief Executive Officer Tim Cook across 2024 and he hopes to have a deal done by the middle of this year.

This news isn’t surprising, but it is welcome. Despite Google’s early stumbles with Bard, its successor, Gemini, has improved by leaps and bounds in recent months and has the advantage of being integrated with many of Google’s other products that have a huge user base. What will be interesting to see is whether Gemini is integrated as an alternative fallback for Siri requests or whether Apple and Google ink a broader deal that integrates Gemini into other aspects of iOS.

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Podcast Rewind: Tracking Apps, Switch 2 Pre-Order Chaos, and Setting Up a New Mac

Enjoy the latest episodes from MacStories’ family of podcasts:

AppStories

This week, Federico and I tackle tracking apps. From database apps to media trackers, we consider what makes a good tracking app no matter what you’re tracking.

This episode is sponsored by:

  • WaterMinder – The Best Water Tracker App for Your Hydration Needs!

NPC: Next Portable Console

This week, looming tariffs cause more handheld makers to pause shipments to the U.S., demand for the Switch 2 outstrips supply, I explain what the U.S. pre-order process was like, and we marvel at the restoration of a vintage Game Boy kiosk.

This week on NPC XL, Brendon shares his brief time with the Retroid Pocket Flip 2 and all three hosts compare videogame streaming notes from GeForce NOW on handhelds to Game Pass on an LG TV.

Ruminate

I have a hot headphone tip, then we discuss the Slate EV truck, and finally how we go about setting up new Macs.

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Sycophancy in GPT-4o→

OpenAI found itself in the middle of another controversy earlier this week, only this time it wasn’t about publishers or regulation, but about its core product – ChatGPT. Specifically, after rolling out an update to the default 4o model with improved personality, users started noticing that ChatGPT was adopting highly sycophantic behavior: it weirdly agreed with users on all kinds of prompts, even about topics that would typically warrant some justified pushback from a digital assistant. (Simon Willison and Ethan Mollick have a good roundup of the examples as well as the change in the system prompt that may have caused this.) OpenAI had to roll back the update and explain what happened on the company’s blog:

We have rolled back last week’s GPT‑4o update in ChatGPT so people are now using an earlier version with more balanced behavior. The update we removed was overly flattering or agreeable—often described as sycophantic.

We are actively testing new fixes to address the issue. We’re revising how we collect and incorporate feedback to heavily weight long-term user satisfaction and we’re introducing more personalization features, giving users greater control over how ChatGPT behaves.

And:

We also believe users should have more control over how ChatGPT behaves and, to the extent that it is safe and feasible, make adjustments if they don’t agree with the default behavior.

Today, users can give the model specific instructions to shape its behavior with features like custom instructions. We’re also building new, easier ways for users to do this. For example, users will be able to give real-time feedback to directly influence their interactions and choose from multiple default personalities.

“Easier ways” for users to adjust ChatGPT’s behavior sound to me like a user-friendly toggle or slider to adjust ChatGPT’s personality (Grok has something similar, albeit unhinged), which I think would be a reasonable addition to the product. I’ve long argued that Siri should come with an adjustable personality similar to CARROT Weather, which lets you tweak whether you want the app to be “evil” or “professional” with a slider. I increasingly feel like that sort of option would make a lot of sense for modern LLMs, too.

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How Does This Keep Happening?→

Today, Blue Prince, a critically acclaimed videogame appeared on Apple’s App Store. The trouble was, it wasn’t offered for sale by its developer, Dogubomb, or its publisher, Raw Fury. The real Blue Prince is only available on the Xbox, PlayStation, and PC.

What appeared on the App Store, and has since been removed, was an opportunistic scam as Jay Peters explained for The Verge:

Before it was removed, I easily found one iOS copy of the game just by searching Blue Prince on the App Store – it was the first search result. The icon looked like it would be the icon for a hypothetical mobile version of the game, the listing had screenshots that looked like they were indeed from Blue Prince, and the description for the game matched the description on Steam.

The port was available long enough for Blue Prince’s developer and publisher to post about it on Bluesky and, according to Peters, for the fake to reach #8 in the App Store Entertainment category. I feel for anyone who bought the game assuming it was legit given Peters’ experience:

I also quickly ran into a major bug: when I tried to walk through one of the doors from the Entrance Hall, I fell through the floor.

This isn’t the first time this sort of thing has happened. As Peters points out it happened to Palworld and Wordle too. Other popular games that have appeared on the App Store as janky scam ports include Cuphead, a version of Balatro that appeared before its official release on iOS, and Unpacking.

This seems like the sort of thing that could be fixed through automation. Scammers want users to find these games, so they can make a quick buck. As a result, the name of the game is often identical to what you’d find on the Steam, Xbox, or PlayStation stores. It strikes me that a combination of automated searching for the top games on each store, combined with an analysis of how quickly a game is moving up the charts would catch a lot of this sort of thing, flagging it for reviewers who could take a closer look.

By the way, if you haven’t tried Blue Prince, you should. It’s an amazing game and early contender for game of the year. You can learn more about the game and find links to where to buy it here. Also, Brendon Bigley, my NPC co-host, has an excellent written and video review of Blue Prince on Wavelengths.

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What Siri Isn’t: Perplexity’s Voice Assistant and the Potential of LLMs Integrated with iOS

Perplexity's voice assistant for iOS.

Perplexity’s voice assistant for iOS.

You’ve probably heard that Perplexity – a company whose web scraping tactics I generally despise, and the only AI bot we still block at MacStories – has rolled out an iOS version of their voice assistant that integrates with several native features of the operating system. Here’s their promo video in case you missed it:

This is a very clever idea: while other major LLMs’ voice modes are limited to having a conversation with the chatbot (with the kind of quality and conversation flow that, frankly, annihilates Siri), Perplexity put a different spin on it: they used native Apple APIs and frameworks to make conversations more actionable (some may even say “agentic”) and integrated with the Apple apps you use every day. I’ve seen a lot of people calling Perplexity’s voice assistant “what Siri should be” or arguing that Apple should consider Perplexity as an acquisition target because of this, and I thought I’d share some additional comments and notes after having played with their voice mode for a while.

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