Apple is allowing companies like Spotify (SPOT) and Netflix (NFLX) to redirect customers to their own websites to make payments, allowing them to avoid App Store fees.
In response to an investigation launched by Japan’s Fair Trade Commission, Apple announced its latest concession in a long-running battle with app developers on Wednesday.
Developers of what Apple (AAPL) refers to as “reader” apps will be able to insert a link out to external websites and allow people to set up or manage their accounts there after the update goes into effect in early 2022.
According to Apple, these apps provide previously purchased content or subscriptions for magazines, newspapers, books, audio, music, and video. Reader apps such as Amazon Video and Kindle are also frequently mentioned.
Spotify and Netflix used to let users pay for services in-app, but they’ve since stopped doing so for new members due to a disagreement with Apple over the hefty commission it charges. If you download the Netflix app, for example, you can sign in — but only if you already have an account. Otherwise, the app instructs you to “join and come back” once you’ve created an account.
“To ensure a safe and seamless user experience, the App Store’s guidelines require developers to sell digital services and subscriptions using Apple’s in-app payment system,” Apple said, adding that it is allowing for the change “because developers of reader apps do not offer in-app digital goods and services for purchase.”
The update will make it easier for some developers to avoid Apple’s hefty fees. On some purchases made through the company’s platform, commissions can be as high as 30%. Apple does not allow customers to download apps from anywhere other than the company’s official store, so developers say they have no choice but to comply.
The matter is at the center of an EU antitrust investigation and a lawsuit filed by Epic Games, the creators of Fortnite. In the Fortnite case, a decision is expected any day now. Apple’s “special deal” for some media apps, Epic CEO Tim Sweeney said late Wednesday, was the latest in a “day-by-day recalculation of divide and conquer in hopes of getting away with most of their tying practices.”
“Apple should open up iOS on the basis of hardware, stores, payments and services each competing individually and on their merits,” he wrote.
Apple’s announcement comes less than a week after the company announced it would loosen some restrictions on how iPhone app developers communicate with customers outside of the App Store.
Apple’s announcement comes less than a week after the company announced it would loosen some restrictions on how iPhone app developers communicate with customers outside of the App Store.
“Developers can use communications, such as email, to share information about payment methods outside of their iOS app,” Apple said last week, as long as users consent to receiving those emails and have the option to opt out.
The news follows the passage of a law in South Korea that allows developers to choose which payment systems to use for in-app purchases. That means they might be able to avoid Apple and Google’s hefty fees (GOOGL).
