New App Rules Cause Ripples

With new rules governing how third parties sell digital content on Apple Inc.'s App Store likely to kick in over the next couple of months, developers are scrambling to deal with the fallout. Some app developers are still trying to understand the new rules -- which essentially tighten Apple's control over sales of digital content in its App Store -- and decide whether to comply with the company's demands or seek an alternative situation.

Meanwhile, several large media companies, including Condé Nast and Hearst Corp., have had private negotiations with Apple to reach their own deals. All of the maneuvering stems from new App Store guidelines that Apple unveiled in February. At the time, Apple said companies that sell digital content such as books, movies, music and magazine subscriptions over its iPhone, iPad and other devices must make that content available for sale via an app, rather than provide a link within the app to an outside website. Apple would then take a 30% cut on any sale. Though they can't put a link within the app, companies can still sell content through their own websites, in which case Apple wouldn't share revenues. But any content they sell on the App Store would have to be the same price or lower.