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App Store: “Hey” Mail CEO speaks out

by Milan
June 20, 2020
Sankt-Petersburg, Russia, May 10, 2018: Apple store application icon on Apple iPhone X smartphone screen close-up. Mobile application icon of app store. Social networks. AppStore

Sankt-Petersburg, Russia, May 10, 2018: Apple store application icon on Apple iPhone X smartphone screen close-up. Mobile application icon of app store. Social networks. AppStore

Last week, a new email service was launched in the App Store. It violates an important App Store policy and is therefore banned from the expulsion threatens. Now the company boss has spoken out.

The "Hey" app includes a $99 annual subscription, which is processed via the company's website rather than through in-app purchases. This clearly violates applicable App Store guidelines. Apple subsequently requested that the company include such an option. Now, Jason Fried, CEO of Hey Mail, has issued an open letter. Fried's main argument focuses on making it clear that Apple's current payment policy is driving a wedge between customers and app providers. In doing so, the head of Hey Mail emphasizes that it is the company that spends the time, money, and effort to acquire customers – not Apple. Fried writes:

Billing questions cannot be answered

When someone signs up for your product on the App Store, they're technically no longer your customer - they're essentially Apple's customer. They pay Apple, and Apple then pays you. So the customer you've spent years acquiring is handed over to Apple. And for the privilege of doing that, you have to pay Apple 30%!

Fried also explained that app providers are unable to assist their customers with billing issues if they have chosen Apple's payment method. The letter states:

You can no longer help the customer who purchases your product with the following requests: refunds, credit card changes, discounts, trial extensions, hardship exceptions, installments, non-profit discounts, educational discounts, downtime credits, tax exemptions, etc. You can't control any of this when you bill your customers through the Apple platform. So now you're forced to sell your customers a product - with your name and reputation on it - and yet you're helpless and unable to help them when they need help with any of the above.

“Ask Apple”

But the problems are not limited to the business/customer relationship, but extend deep into the company. Many providers have already set up an infrastructure for billing and Apple's lack of integration with external systems leads to a greater burden for those who have to operate them. Fried argues as follows:

Furthermore, like many sophisticated software companies, we already have a centralized billing system integrated into our own back-office systems—administration, accounting, account management, data searches, customer support, etc. If one of our customers is forced to pay with Apple's payment system, we're blind. We can't look them up, we can't help them. Our only answer is "Ask Apple." What a terrible, hopeless message. Developers who are forced to send this message today are often accused of defrauding their customers, stealing their money, etc.

“It’s our business, not your business”

The Hey-Mail boss closes his letter by asking Apple to give developers the choice of using Apple's payment system or not. The letter states:

Apple, please just give your developers a choice! Let us bill our own customers through our own systems so we can help them with extensions, refunds, discounts, or whatever in our own way. This is our business, not your business.

App Store guidelines have long been controversial. While the recent "Hey" email case is currently being discussed, more and more companies are calling for regulation of the digital marketplace – not least due to antitrust concerns. Those who would like to read the full letter can find it on the official website. company website from “Hey”. (Photo by bigtunaonline / Bigstockphoto)

  • Phil Schiller comments on dispute with “Hey” app
  • Spotify welcomes EU investigation against Apple
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