We recently blogged here about why it can sometimes be a nice thing to avoid the Apple App store. One of the most important elements of the App store is in App Purchasing which provides a revenue stream to Apple for every purchase made via an App.
Apple require that to offer a customer the option of purchasing outside of an App the same price or less must be provided for in the App also. FYI Apple’s cut of the proceeds is 30%.
It is not difficult to understand the outrage caused recently by Russian hacker Alexey V. Borodin. Alxey has created a clever (and highly suspicious) workaround that allows for in App purchasing to take place via a ‘cash register’ which is not opened and closed by Apple. So unlimited in-app purchases for zilch…
Apple’s response has been to block the IP address used by Borodin but he prevails nonetheless by relocating his server. PayPal have also weighed in at this stage and the ending will surely be unenviable for Borodin.
Due to his breach of the law (theft for one? and possible copyright infringement?) Borodin may well find himself the respondent in a court action, if the 30,000 ‘purchases’ which have taken place already are anything to go by the results would be interesting. At the same time Apple may well take this as a favour indicating how they need to tighten up. Borodin also gained substantially as payments in thanks flock in via PayPal to him.
As indicated by the Next Web in their article here this service stores customer information on servers which are at an unknown location, privacy issues are more important to most than the dollars saved from what is sure to be a short term endeavour for Borodin.
Remember also this workaround is for in app purchases and not Apps themselves e.g. it will allow for the additional features in an App like new tracks in a racing car game but not to purchase the App in the first place. Presumably this would apply for Newsstand too.
Borodin today posted that his workaround is OK for use on Mac OS Mountain Lion which went on general release today. Proceed with caution….
Small print: 3D Issue Ltd. is neither connected or in favour of this application, readers acting on any of the information above do so at their own risk.