Apple allowing app purchases without taking a cut to avoid regulation

TECH

Apple will let some apps guide users to websites to make payments, bypassing Apple’s cut

https://www.cnbc.com/2021/09/01/apple-will-let-some-apps-guide-users-to-websites-to-make-payments-bypassing-apples-cut.html

PUBLISHED WED, SEP 1 20218:52 PM EDTUPDATED 4 HOURS AGO

Kif Leswing@KIFLESWING

KEY POINTS

  • The rule does not apply to all transactions through the App Store. Game oriented in-app purchases will still need to use Apple’s payment system.
  • But so-called “reader apps” that link to content subscriptions can now offer a service without offering a subscription handled through Apple.

Apple on Wednesday said that some apps will be allowed to provide a link to their websites to prompt users to sign up for a subscription.

Apple previously forbid app makers from directing users to subscribe through a website, for example to sign up for a service like Spotify or Netflix. Instead developers were directed to Apple’s own billing, which takes between 15% and 30% of the gross sales.

The rule does not apply to all transactions through the App Store. Game oriented in-app purchases will still need to use Apple’s payment system. But so-called “reader apps” that link to content subscriptions can now offer a service without offering a subscription handled through Apple.

The issue is one of the main complaints of developers who say Apple’s App Store has anticompetitive practices. Those include Spotify, whose complaint was a factor in the European Union’s decision to say Apple breaks competition rules.

Apple said the decision was made as part of a settlement with the Japan Fair Trade Commission but that it was applying the new rule globally.

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