Major tech industry figures have sounded off against Apple over its treatment of Damus, a social media app that allows users to send monetary tips in response to posts made on the platform. The controversy has reignited concerns about Apple's App Store Review Guidelines and their impact on innovative app startup ideas.
Damus, an application built on the Nostr protocol, is at the center of the storm. This open-source technology has been financially backed by none other than Jack Dorsey, co-founder of Twitter and current head of Block. According to Damus, Apple zeroed in on a feature called "zapping," which allows users to send small amounts of bitcoin as tips or gifts.
The issue at hand is that Apple considers zapping to be "selling digital content." While the company's guidelines do allow for monetary gifts without using in-app purchases, they must meet specific requirements. In this case, Apple is demanding Damus remove its "zap" button on posts, citing concerns over the feature's compliance with their guidelines.
The implications of this decision are far-reaching. As Elon Musk pointed out, it could have significant consequences for app startup ideas and innovative platforms that rely on tipping or gifting mechanisms to support content creators. With Apple's commission fee on in-app purchases ranging from 15% to 30%, the potential revenue loss is substantial.
In a tweetstorm, Dorsey criticized Apple's decision, stating that "tipping on posts is not selling digital content. It's a form of feedback." He also called out Apple CEO Tim Cook, asking why the company would limit people sending bitcoin to each other and miss an opportunity to build a truly global payment protocol for the internet.
Other tech executives have come to Damus' defense, criticizing Apple's stance. Twitter owner Musk tweeted that "if Apple competes against the whole world, Apple will have the whole world against it. This is not a winning scenario." Tim Sweeney, CEO and co-founder of Epic Games, also spoke out against Apple, warning that the company may target other payment apps like Patreon, Venmo, PayPal, and Stripe.
As this debate continues to unfold, one thing is clear: Apple's treatment of Damus has sparked a much-needed conversation about the future of app startup ideas, innovative platforms, and the role of bitcoin in the digital landscape.