Apple offers the biggest concession to app companies. What is it?

Apple will allow developers of apps like Netflix to link from its App Store to external websites for user payments, a modest concession to the global review of the 30% Apple gets from service and service subscriptions. purchases on iPhones.

Apple said the change, to settle a Japanese Fair Trade Commission investigation, would go into effect worldwide early next year for so-called reading apps that cover content such as magazines, newspapers, books, audio, music and video.

So far, Apple has forced these apps to use the in-app purchase system, which gives Apple a 30% commission on in-app downloads and subscriptions. This rule will still apply to games, the top-grossing category of mobile apps, as well as in-app purchases.

“When it comes to in-game content purchases, which generate the bulk of the App Store’s revenue, they’ve kept their walled garden closed to outsiders,” said Amir Anfarzadeh, chief strategist at Asymmetric Advisors. “However, Apple is clearly in the spotlight” and “low royalties or management fees in the event that in-game content purchases are unavoidable.”

The announcement comes at a time of increased regulatory scrutiny and criticism of Google and Apple’s dominance in mobile platforms. On Tuesday, a new bill was passed in South Korea that would require major app store operators to allow users to choose payment methods online. The first such piece of legislation, the bill will become law when President Moon Jae-in signs it, and similar measures are being considered by US lawmakers.

On Thursday, it was also reported that India’s antitrust regulator had launched an investigation into Apple’s in-app payments.

Apple’s latest move helps the company reach a deal with the Japanese regulator, which is currently closing its app store investigation.

“We have great respect for the Japan Fair Trade Commission and appreciate the work we have done together, which will help developers of reading applications to make it easier to set up and manage their applications and services,” Apple said in a statement. communicated.

Last month, in a preliminary settlement of a class action lawsuit with the developers of the App Store, Apple agreed to pay $ 100 million and allow US software makers to advertise fashions. third-party payment to consumers by e-mail.

In-game spending accounts for more than half of App Store sales, rising to $ 26 billion out of $ 41.5 billion in consumer spending in the first half of this year, according to the analytics company Sensor Tower data.

Apple’s change will not resolve its legal dispute with Epic Games over in-app purchases in the world-famous game Fortnite, which alone generated more than $ 1 billion in sales through Apple’s platform in 30 months on the App Store.