As reported on THE INTERNET, Apple is locking down in-app purchases for content-based apps. In a nutshell, developers will have to enable purchases available elsewhere in the app as well, and for the same price. This means Apple gets a cut, and the content provider loses 30 per cent. Apple argues this rule has existed since the start of iOS IAPs, but it’s just not been implemented for apps like Kindle and Spotify, and claims it’s not out to ‘kill’ such products.

Peter Steinberger on why Apple’s not being entirely truthful about its plans:

Setting up IAP is a pain. Keeping it in sync with your library is even worse. And there are also limits – IAP allows up to 3500 items – Amazon Kindle currently has about 2.5 MILLION items.

So not only is this likely impossible for Amazon from a commercial standpoint—its razor-thin margins don’t allow for Apple to take 30 per cent of any purchase—but it’s literally impossible using Apple’s current infrastructure. (Note: Amazon itself is no angel, since its margins have a tendency to put small publishers out of business, and it used to demand up to a 70 per cent cut—something a lot of people and pundits appear to have forgotten. This post isn’t about defending Amazon from the ‘evil’ of Apple.)

In other words, Apple’s reportedly giving Amazon until June 30 to totally change the way it deals with Kindle, but it’s impossible for Amazon to comply. This is about getting Kindle off of iOS, because it competes with iBooks. Thing is, Kindle being booted off iOS won’t make people switch to iBooks—it’ll make people buy Kindles. And time people are using their Kindles is time they’re not using their iPads and iPhones, potentially reducing the likelihood of them making purchases.

More importantly, I believe Apple is making a bad move in turning Amazon into an enemy. Amazon has already revealed plans for an Android store, and unlike the various kinds of shambles available elsewhere, Amazon will do it properly. In other words, it’ll be like Apple’s App Store, but for Android. Additionally, Amazon now owns Lovefilm, which European Apple TV owners were hoping would become the bundled Netflix equivalent outside of the US. If Apple and Amazon start butting heads, Lovefilm will instead become part of Amazon’s arsenal in creating an Apple-like ecosystem on Android that has the potential to hit iOS hard.