By Jack Denton
$Apple(AAPL.US)$ will ease payment rules for certain apps like Netflix and Spotify, in a concession that will allow some media platforms to bypass fees the tech giant collects on in-app purchases.
The move was prompted by a ruling from Japan's Fair Trade Commission but will apply globally, the company said in a press release late Wednesday. Starting in early 2022, some media apps will be able to share a single link to their website to allow users to set up and manage their account.
The changes will affect "reader" apps, which are platforms that allow users to consume previously-purchased entertainment content or subscriptions like music, video, audio, and news. It is a category of app that covers the likes of Netflix, Kindle, and Spotify -- the latter of which has been a longtime critic of Apple's gatekeeping role over the App Store while its Apple Music remains a key Spotify rival.
We have great respect for the Japan Fair Trade Commission and appreciate the work we've done together, which will help developers of reader apps make it easier for users to set up and manage their apps and services, while protecting their privacy and maintaining their trust"
-said Phil Schiller, an Apple executive who oversees the App Store.
While Apple's dominance over app payments has borne much of the brunt from regulators, the size of its commission is unlikely to be critical to the company's success. Apple generated commissions of $21.7 billion from the App Store in 2020, or about 8% of its annual revenue, according to app tracker Sensor Tower. So even if Apple was forced to cut its commission in half, the damage would be less than 5% of its total revenue.
Apple's decision comes hot on the tail of a law passed in South Korea this week that will require the company as well as rival Google, owned by $Alphabet -CL A(GOOGL.US)$, to allow alternative payment systems on their app stores.
(END) Dow Jones Newswires
September 02, 2021 08:09 ET (12:09 GMT)
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