Apple Will Allow Netflix And Spotify Apps To Be Registered.
Key Sentence:
- For the first time, Apple allows apps like Netflix and Spotify to connect to a website.
- Where users can register and manage new and existing accounts.
Apple said the changes to the so-called "reading app" will take effect worldwide from early 2022. The changes were agreed with the Japan Fair Trade Commission (JFTC), which completed a five-year investigation. The agreement does not affect in-app purchases of games currently being sued against Apple in the US.
Currently, app developers must use the in-app purchase system in Apple apps and generally cannot instruct users to purchase content elsewhere. This means that some apps will only work if you've received a subscription elsewhere and don't offer in-app links to websites you can sign up for.
Apple currently receives between 15% and 30% commissions for in-app purchases – its app store is instrumental in generating nearly $54 billion (39 billion pounds) from its "Services" segment. The JFTC outlined its investigation, saying the agreement included a "reading of the application."
Apple says this will include apps that deliver pre-purchased content or subscriptions to "digital magazines, newspapers, books, audio, music, and video." However, the changes do not affect games where App Store rules are currently the subject of a serious legal dispute in the US with Fortnite developer Epic Games.
In response to the latest news, Tim Sweeney, CEO of Epic Games, accused Apple of trying to develop a share and conquer strategy.
Apple faces another legal challenge managing its app store.
On Tuesday, South Korea's National Assembly passed a bill that, once ratified, would prevent Apple and Google from requiring apps to use only their app payment systems.
Apple had previously notified the Verge that the bill would, among other things, "expose consumers who purchase digital goods of other sources to the risk of fraud." On Thursday, another lawsuit was filed in India against the company over the necessary use of its in-app purchase system.
"Having a 30% commission means some app developers will never reach the market ... it can hurt consumers too," the statement said, according to Reuters. Apple is also subject to competition controls concerning the App Store by the European Commission and the UK Competition and Markets Authority.