Apple Expands Privacy Features, Enables Digital ID Storage on iPhones

Developer support is definitely something that's a pain point.
A survey of app makers reveals widespread frustration with Apple's App Store fees and approval processes.
Mark

So Apple is storing actual government IDs on phones now? That seems like a security risk worth examining.

Mimi

They're encrypted and stored in the digital wallet, which is the same place credit cards live. The TSA partnership suggests they've thought through the security model, at least for airport use.

Luke

But we don't know the full technical details yet. "Encrypted" is a word that covers a lot of ground. And this only works in participating states—we don't know how many that is or what the rollout timeline looks like.

Mark

The privacy features sound genuinely useful. Masking email addresses, blocking trackers in Mail—that's real protection.

Mimi

It is, and notably Apple isn't charging extra for these in iCloud+. That's a deliberate choice to make privacy the default rather than a premium feature.

Luke

True, but private relay obscures your data from advertisers while Apple still sees it. That's better than the alternative, but it's not the same as Apple not seeing it. The framing matters.

Mark

What about the developer anger? Is that going to force Apple to change?

Mimi

The survey shows 90% of developers aren't leaving, which is powerful. But the complaints are specific and consistent—fees and transparency. Those aren't going away.

Luke

And we should note that the survey is ongoing with 400 developers so far. That's a decent sample, but it's not the entire ecosystem. We don't know if the developers who are most angry are even responding to surveys.

  • Apple's move to store state-issued IDs on iPhones — coordinated with the TSA for airport use — signals a quiet but profound shift in how identity itself may be carried and verified in daily life.
  • New iCloud+ privacy tools, including browsing obfuscation, email masking, and tracker blocking, position Apple as a shield between its users and the data-hungry advertising economy — at no extra charge.
  • FaceTime's expansion to Android and Windows devices marks a rare concession from Apple's walled-garden philosophy, driven by the pandemic's normalization of cross-platform video communication.
  • Developer frustration is mounting: over half of surveyed app makers want App Store fees capped at 10%, and many cite opaque rejection processes as a persistent source of distrust.
  • The Epic Games antitrust lawsuit, a federal judge's pending ruling, and Facebook's pledge to waive creator fees for two years collectively frame Apple's announcements within a broader reckoning over platform power.

At its annual developers conference, Apple unveiled a vision of the smartphone as a trusted keeper of identity and privacy — offering digital state IDs, encrypted browsing, and masked email addresses to its users. The announcements arrive at a moment of contradiction: a company presenting itself as a guardian of personal data while facing sustained scrutiny over whether its App Store practices serve or constrain the developers who build within its walls. The tension between Apple's curated ecosystem and the demands of an open digital economy is no longer a background concern — it is the defining question of the company's next chapter.

Apple used its annual Worldwide Developers Conference — held online for the second year running — to announce a cluster of features centered on privacy and digital identity. Most striking was the introduction of digital state IDs stored directly in the iPhone's wallet, encrypted alongside credit cards and transit passes. Apple is working with participating U.S. states and the Transportation Security Administration to make these IDs accepted at airport checkpoints, potentially transforming how Americans navigate one of their most routine identity-verification moments.

The company also rebranded its paid iCloud service as iCloud+, bundling new privacy protections at no added cost. A private relay feature will conceal users' browsing activity from both advertisers and Apple itself — a distinction the company was careful to emphasize. Users will also be able to generate masked email addresses for online forms, shielding their real inboxes from data brokers, while the Mail app will now block the tracking pixels that reveal when messages are opened.

FaceTime received updates aimed squarely at Zoom and its pandemic-era rivals: scheduled calls, larger group participation, and — in a notable departure — compatibility with Android and Windows devices. The move acknowledges that video calling has become a cross-platform expectation rather than a platform-exclusive perk.

Yet the conference unfolded against a backdrop of significant legal and commercial pressure. Apple is contesting an antitrust lawsuit from Epic Games over the 15% to 30% commission it collects on App Store digital sales, with a federal judge currently deliberating. A survey of more than 400 developers found that while most have no intention of leaving Apple's ecosystem, discontent runs deep: over half want fees capped at 10%, and many described the app review and appeals process as frustratingly opaque. Smaller developers tend to view Apple more favorably than larger ones bearing higher fees, but the friction is broadly felt.

Facebook's announcement — made just before Apple took the stage — that it would waive creator fees for at least two years added competitive texture to the moment. Apple has long defended its App Store as a curated, trustworthy environment that benefits everyone within it. That argument, once largely unchallenged, is now being tested from multiple directions at once.

Apple announced a suite of new privacy features and digital identity tools on Monday at its annual developers conference, marking the company's latest effort to position itself as a guardian of user data even as it faces mounting regulatory pressure over its control of the App Store.

The centerpiece of the announcement was the ability for iPhone users to store state-issued identification cards directly on their devices. Apple said it is working with participating U.S. states to make this possible, with the cards encrypted and stored in the digital wallet where credit cards and transit passes already live. The company is coordinating with the Transportation Security Administration to enable these digital IDs at airport checkpoints, a move that would streamline one of the most common identity-verification scenarios Americans face.

Alongside the ID feature, Apple introduced iCloud+, a rebranded version of its paid storage service that bundles several new privacy protections at no additional cost. A feature called private relay will obscure users' identities and browsing activity from both Apple itself and advertisers—a notable distinction that Apple emphasized. The service also includes the ability to generate masked email addresses when filling out online forms, keeping a user's actual inbox hidden from data brokers and marketers. The company also updated its Mail app to block tracking pixels that senders use to detect when messages are opened, a practice that has become standard across the email industry.

FaceTime, Apple's video calling platform, received updates designed to compete more directly with Zoom and other services that gained prominence during the pandemic. Users can now schedule calls in advance and invite multiple participants, and the app will work with Android and Windows devices—a significant shift from its previous Apple-only stance. The move reflects the reality that video conferencing has become a cross-platform necessity.

These announcements came during the Worldwide Developers Conference, held online for the second consecutive year due to the pandemic. The timing was notable because the event typically serves as a stage for Apple to address developer concerns, and this year those concerns are particularly acute. The company faces an antitrust lawsuit from Epic Games, the creator of Fortnite, over its App Store practices and the 15% to 30% commission it takes on digital sales. A federal judge is currently weighing how to rule in that case.

The developer sentiment is mixed. A survey by Creative Strategies of more than 400 app makers found that over 90% have no plans to abandon Apple's platform, suggesting the ecosystem remains attractive despite friction. Smaller independent developers earning $1 million or less annually tend to view Apple more favorably than larger companies that pay higher fees. But discontent is widespread on specific issues: more than half of surveyed developers said fees should be capped at 10%, and many complained about lack of transparency around why apps are rejected and how to appeal those decisions. Ben Bajarin, the executive running the survey, described developer support as "definitely something that's a pain point."

Facebook's announcement moments before Apple's presentation added another layer to the competitive landscape. CEO Mark Zuckerberg said Facebook will not charge content creators fees for at least two years, a move that underscores the ongoing tension between platforms and the creators who depend on them. Apple has long argued that its App Store practices create a trustworthy environment that benefits the entire ecosystem, but that defense is increasingly tested by regulators and developers alike.

Developer support is definitely something that's a pain point.
— Ben Bajarin, Creative Strategies
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