Why is Roblox Allowed on the App Store?

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Is there a good explanation for how Roblox isn't violating Apple's App Store policies (e.g. individual game submission outside of Roblox, bundling unapproved games, use of digital currency not bought through iOS)... other than it being grandfathered/now too popular?

Matthew Ball shared a thought-provoking idea with Twitter this week - Roblox isn't compliant with Apple guidelines. In fact, a closer examination of the Roblox platform itself shows multiple conflicts, including unapproved games, independent codebases, legal infringements, etc.

Another person succinctly sums up this thought in a recent Hacker News post:

If there is a clear infringement of App Store policy, why does Roblox technically comply when so many other gaming services do not? Could it be favoritism or … competition ? For context, Apple has a fraught history with other Big Tech companies and App Store compliance. The laundry list includes everything you’d expect

Ball raises an interesting point because Apple’s reasons for barring apps on the App Store can often feel pointed against a few select players. Overall, the guidelines can be murky, a catch-all for those who don’t comply. And as we’ll discuss, it’s unclear whether or not Roblox violates their guidelines, but it also feels probable that they do.

From Facebook’s Cloud Gaming Annoucenment Blog Post — Jason Rubin

We’re not legal experts, but figured it could be useful to compile a few resources we researched while searching for a clearer answer. Aside from Epic’s public tussle over the 30% app tax, Facebook, Microsoft, and Google (Stadia) violate the guidelines for their gaming apps because they chafe against Apple’s Remote Desktop Clients clause.

Here, unlike xCloud and Stadia for example, Roblox complies with section (c) in that it allows for users to sign-up for an account on mobile. Importantly, it also allows for users to buy Robux (the virtual currency) and subscribe to Roblox Premium (their subscription membership) through the mobile app. These are favorable conditions in the eyes of Apple; however, it’s unclear — considering that cloud-based platforms require data centers — how Roblox as well as Microsoft and Google can check off sections (a) and (e). How can it be an “approved” app when it violates these major requirements as well? Cloud-based gaming necessitates large warehouses full of servers and “thin client for cloud-based apps” aren’t kosher for Apple.

Given these conditions, it seems that Apple favors the smaller tech company [Roblox] over the larger ones [Microsoft and Google] because it overlooks these important cloud considerations. This brings us to the next relevant clause.

How doesn’t Roblox fit into these criteria? According to sources, Roblox hosts millions of games on their platform, each with their own unique code base developed by a host of developers. Ultimately, Roblox defines itself as a game services and hosting platform rather than a company that owns its own game studios. This definition is core to how Apple perceives Roblox as an app: “Roblox games are backed by a growing suite of cloud services, including game hosting, data persistence, and virtual currency transactions. Games are made by both individuals and by teams using Roblox Groups.” Indeed, some of the largest games like Adopt Me are wholly operated and owned by independent studios like DreamCraft. To us, Roblox sounds more and more like a game streaming platform.

This begs the question on why the games aren’t individually screened and assessed by Apple. Scrolling through their platform, there seems to be a variety of glaring copyright infringements. At the time of this writing, viral Roblox game “Amongst Us” had 22.4k concurrent players with 24.7M lifetime visitors. What game is that based off of? Hmm, we wonder. Many games are famous for riffing and modding on older concepts (e.g DOTA vs. LoL), but how can such a clear infringement bypass the App Store guidelines and the Roblox terms of service?

To Roblox’s credit, they’re publicly tackling copyright infringement head on. The company recently partnered with Monstercat to provide developers a collection of legal, copyright-free music to use in their games. Considering the Twitch conundrum with DMCA, this feels like a proactive move.

So, how does Roblox continue to be on the App Sore despite being in violation of multiple clauses? Perhaps it’s that they collaborate closely with Apple to ensure all product and game development updates are in strict compliance with Apple’s own policy. In a response to Apple’s decision on xCloud, Microsoft notes that “All games available in the Xbox Game Pass catalog are rated for content by independent industry ratings bodies such as the ESRB and regional equivalents.” Apple does not approve of these independent ratings. It follows, then, that Roblox’s guidelines are somehow compliant with Apple’s, which through some special agreement, gives Roblox games automatic approval from Apple. Our assumption is that Roblox circumvents the ESRB rating bodies to work closely with the Apple team to ensure that all games/assets fit in with the Apple mold.

We can already see this special relationship play out in a variety of ways. One example is that Roblox prices its Premium subscriptions and in-app Robux (the Roblox currency) the same as it does online. So long as Roblox allows their virtual currency to be bought in both capacities — and importantly doesn’t tell people to buy it on a non-Apple platform — Apple won’t necessarily care. Contrast this with Spotify, which has users paying a higher price on mobile than on the web. Netflix is similar in that it only allows users to sign up via the web. To this end, the Reader App clause in the App Store guidelines states that subscriptions and content purchased on other operating systems can be carried over to iOS.

Perusing the Roblox Developer Hub, we see that Roblox has more favorable terms around the app tax. This is consistent with other larger companies that negotiate for a lower fee on the App Store.

Presumably, Roblox’s terms are even more favorable than 24.5% since they generated $1 billion dollars on mobile alone this past year, but the main point is that Roblox has chosen the “friends not enemies” route to their relationship with Apple. Perhaps this is the 200 IQ play of Roblox. In developing their relationship with Apple, they’ve found ways to bypass their tax. One such example is their gift cards program.

Tied with incentives and extra Robux, consumers are likely to buy gift cards to reload their Robux balance. Gift cards cannot be redeemed on Roblox apps, only on the browser, so they inherently avoid the app tax. Notably, Roblox also owns the entire end-to-end ecosystem on their platform.

Their ecosystem is certainly an aspect that Roblox is already thinking of, but the implications are far-reaching. Advertisements are paid for in Robux by the developer to promote their game. By paying in Robux, this means that Apple will never see any profits from advertising on Roblox because they’re entirely paid for on a virtual currency that’s already been exchanged, and now, transacted against. Roblox will cycle Robux as much as possible through its system to maximize profit potential.

The point here is that Roblox is playing both sides of the game. It’s probable that they do violate the App Store games bundling/game streaming guidelines to some degree, but their relationship with Apple keeps in the green. To this end, they’re compliant with Apple’s policies insofar that account creation and payments adhere to the iOS guidelines. They also won’t be penalized since they’re following the right steps by iOS standards. But taken a step further, Roblox is creatively figuring out ways around the app tax on iOS. Apple has presumably driven at least $245 million dollars from Roblox (assuming 50/50 split on mobile revenue Android + iOS on $2billion lifetime revenue). The reality is likely much different.

TL;DR to Ball’s Tweet:

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