Apple is finally opening up on-website payments for the likes of Spotify, Netflix, and what has been described as "reader" apps. The company's move to open up to third-party payments is a result of a settlement with the Japan Fair Trade Commission.
Apple is Opening Up the Option of On-Website Payments on Specific Apps
As reported on Variety, Spotify, Netflix, and other services are now allowed to add a direct link to their apps on the iOS space that directs users to their websites "for payment and account management."
Apple released an announcement and said that the company allows its "reader" app developers to link directly to their website. As per the Cupertino giant's definition of "reader apps," these are apps that help give purchased content or subscriptions for newspapers, digital magazines, books, music, audio, and video formats.
Apple launched its App Store Review guideline 3.1.3(a), which allows developers of reader apps to ask for access.
Cupertino Giant's Actions as a Result of the Settlement with the Japan Fair Trade Commission
According to the story by Engadget, Apple initially announced back in 2021 that it will be giving certain media services the option to have in-app links as part of a settlement deal with the Japan Fair Trade Commission.
The stipulation was agreed upon by Apple and in turn, the company will be applying a brand new policy to all of reader apps on its App Store around the world after the result of JFTC's investigation.
Developers Need to Request for the External Link Account Entitlement Program
With this being said, in order to add the links, developers have to ask for access to the External Link Account Entitlement program before the links can be allowed. Apple will still be collecting commissions for any purchases made within apps should any service be offered.
This, however, will provide a way for developers to be able to avoid paying Apple their requested 15 to 30% cut for products or services being sold in-app.
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Google Pilot Program Still Asks for a Commission from Sales Made
Aside from Apple, Google has also started testing out the launch of a pilot program for Android when it comes to testing out third-party billing systems.
With the pilot program, users will be able to pay for products or services either through the developer's payment system or Google's regular payment system. One of the program's progressions is Spotify giving its users options to subscribe, namely to pay through Google's billing system or Spotify's billing system.
Google is said to still receive a cut despite users choosing to pay through the app's or service's billing system. The commission Google is expected to receive is expected to be smaller than the regular 15% commission coming from the tech giant.
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Written by Urian B.