There is an exemption for another rule - only streaming apps are allowed to offer no functionality until you pay outside the app.
If you install the Netflix app, you'll be hit with a login screen and no way to proceed until you go online, create an account, and pay.
However, if you were to make a game that had the same UI, it would be refused access to the store - apps must have some level of functionality without requiring a purchase outside the app, except if they are in the 'reader' category.
These restrictions are very selectively enforced. I’ve complained about a couple of apps that won’t work until given access to contacts (despite earlier versions allowing it, AND contacts not being essential), and Apple’s response was “we’ll look into it”
In another anti-competitive move, Apple has banned all game streaming service (with the phony-sounding reason of 'we have to review all the games' when they don't review movies from streaming apps) while they prep their own game streaming service.
> with the phony-sounding reason of 'we have to review all the games' when they don't review movies from streaming apps
How many headlines have you seen about parents getting a huge credit card bill from their kids going wild in a video streaming app?
The games market is predatory enough on iOS with reviews without being able to push down whatever unreviewed pay-to-win, lootbox, "hit the lever!" garbage people like Epic, EA, and Ubisoft churn out. I shudder to think what it'd be like with the floodgates opened.
As always, we can look to android to see how it would go. An the answer is nothing happens, the game streaming services work fine. Apple is purely trying to avoid losing profit on out of store transactions.
Apple doesn't allow Game Streaming apps on their platform for some odd reason so things like GeForce Now, xCloud, Stadia, are all barred because...no real reason that's not hypocritical.