Apple is letting developers increase subscription prices without informing users

Despite being criticised by antitrust watchdogs for not allowing third-party payments on iOS apps, Apple has its counter-arguments in place to defend why that is the case. The main counter that Apple has, in this case, is the fact that it wants to protect its users when it comes to subscriptions. Since all the payments are made through Apple, it guarantees you the right to ask for support, requests refunds, and even cancel a subscription without any hassles. 

Developers are allowed to increase the prices of subscriptions they offer through the App Store. However, once prices are increased, the user would get a prompt to accept the new price, if they did not, the subscription would automatically stop. This practice is fair to both parties - while the developers get to charge more for whatever they think deserves it, the user gets to decide if that is worth the money or not. And if it isn’t, the user can just let the subscription go. 

Things aren’t going to be as fair from now on. Apple is allowing developers to increase subscription prices without notifying users or taking their confirmation.  

Apple mentioned in an announcement that developers can now increase their subscription prices without users having to opt-in.  

“Currently, when an auto-renewable subscription price is increased, subscribers must opt in before the price increase is applied. The subscription doesn’t renew at the next billing period for subscribers who didn't opt in to the new price. This has led to some services being unintentionally interrupted for users and they must take steps to re-subscribe within the app, from Settings on iPhone and iPad, or in the App Store on Mac,” Apple said.  

To avoid this interruption, instead of stopping the subscription when the user ignores the upgraded pricing prompt, they will automatically have to pay the increased fee. Sp. while Apple will still notify users about the change in price, there are chances that a user might miss it and that will lead to them paying more without realising.  

“Under certain specific conditions and with advance user notice, developers may also offer an auto-renewable subscription price increase, without the user needing to take action and without interrupting the service. The specific conditions for this feature are that the price increase doesn’t occur more than once per year, doesn’t exceed US$5 and 50 per cent of the subscription price, or US$50 and 50 per cent for an annual subscription price, and is permissible by local law,” Apple explained.

Adding that “in these situations, Apple always notifies users of an increase in advance, including via email, push notification, and a message within the app. Apple will also notify users of how to view, manage, and cancel subscriptions if preferred”.  

The company added that for all subscription price increases that are above the aforementioned threshold, ones which exceed the annual limit, or occur in territories where it is required by law, “subscribers must opt in before the price increase is applied”. “The subscription won’t renew at the next billing period for subscribers who didn’t opt in to the new price. They can always re-subscribe within the app, from Settings on iPhone and iPad, or in the App Store on Mac,” Apple said.  

While this does make it difficult for fake apps and scam apps to increase prices, it is not foolproof and it’s not entirely fair for users. At the end of the day, Apple receives a sizable chunk from every payment made.  

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