Apple allows Netflix and Spotify to bypass App Store commissions
03:56, 2 September 2021
Apple agreed to globally update its App Store to allow “reader” apps, such as Netflix and Spotify, to include an in-app link to their website for users to set up or manage an account, following an investigation by Japan’s antitrust watchdog.
The upcoming App Store update, which will allow “reader” apps to bypass the App Store’s payment commission of up to 30%, will close the investigation by the Japan Fair Trade Commission (JFTC), said the Cupertino-based company.
Apple said it will apply this change globally for "reader" apps, which it defines as ones that "provide previously purchased content or content subscriptions for digital magazines, newspapers, books, audio, music, and video".
Global scrutiny
The iPhone maker’s App Store is under antitrust regulatory focus regarding its 15% to 30% commissions on digital sales and policies requiring developers to use its in-app payment system.
On Tuesday, South Korea’s parliament passed a bill to curb the dominance of Apple and Google over smartphone app stores, by barring app store operators from forcing certain payment methods on developers.
Earlier this year, video game developer Epic Games took Apple to court regarding in-app purchases dispute. Epic Games’ flagship game Fortnite was banned from Apple’s App Store after the gaming firm introduced its own in-app payment method.
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App Store update
Currently, Apple requires developers to sell digital services and subscriptions using the company’s in-app payment system.
Apple said that because developers of reader apps do not offer in-app digital goods and services for purchase it agreed with the JFTC to let developers share a single link to their website.
“Before the change goes into effect in early 2022, Apple will update its guidelines and review process to make sure users of reader apps continue to have a safe experience on the App Store,” Apple said.
Read more : South Korea curbs Apple, Google billing dominance
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