Apple to let Netflix and Spotify offer alternative payment options

For years, Apple has forced users to sign up to subscriptions through its own App Store payment system, allowing the company to take a controversially high share of any profits.

Now, anyone signing up to a Netflix, Amazon or Spotify subscription will be able to click on a link in the app to circumvent Apple's revenue share on purchases within an app.

The policy shift comes after years of criticism from app developers of a revenue share of between 15 and 30 per cent from so-called in-app purchases. So far, the company has tried to prevent developers from directing their users to payment alternatives.

The new policy comes as part of an agreement with the Japan Fair Trade Commission (JFTC), allowing media publishers, e-book providers and other subscription services to offer their customers a link in the app to create an account for paying.

It's Apple's second concession to regulators and app developers in the space of a week. Last Friday, in a another settlement, Apple allowed smaller developers to send app users targeted information about subscription deals outside the App Store.

However, users can't sign up for these deals inside the app itself - only outside the app, by email for example.

The settlement with the JFTC now concerns "reader apps". These are apps that can be used to consume previously purchased content or subscriptions to digital magazines, newspapers, books, audio, music and video content.

The agreement in Japan will be valid worldwide in early 2022. The compromise with the JFTC explicitly does not cover mobile games and will therefore not settle the ongoing dispute with game developer Epic.

Epic CEO Tim Sweeney demanded on Twitter that Apple open up its iPhone operating system iOS in terms of hardware, stores, payment methods and services and allow competition. "Instead, they’re running a literally day-by-day recalculation of divide-and-conquer in hopes of getting away with most of their tying practices."

Apple's app store system is currently fighting a war on several sides, and the EU Commission accuses the iPhone company of unfair competition in the business with music streaming apps like Spotify.

Epic wants to use a lawsuit in the US to ensure that they and other providers can operate their own App Stores on the iPhone without Apple. Apple counters that the App Store is a lucrative platform for app developers and at the same time protects users from fraud attempts.

Source: DPA

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