Â鶹´«Ã½

Skip to main content

Apple relaxes App Store rules for services such as Spotify and Netflix

Apple CEO Tim Cook speaks during an announcement of new products at the Apple Worldwide Developers Conference in San Jose, Calif. in this Monday, June 4, 2018 file photo. (AP Photo/Marcio Jose Sanchez) Apple CEO Tim Cook speaks during an announcement of new products at the Apple Worldwide Developers Conference in San Jose, Calif. in this Monday, June 4, 2018 file photo. (AP Photo/Marcio Jose Sanchez)
Share

Apple will allow companies such as Spotify and Netflix to direct customers to their own websites to make payments, allowing them to more easily avoid fees levied by the App Store.

The iPhone maker's latest concession in a long-standing fight with app developers was in response to an investigation initiated by Japan's Fair Trade Commission.

The update — which will take effect in early 2022, and applies worldwide — will allow developers of what Apple calls "reader" apps to insert a link out to external websites and let people set up or manage their accounts there.

Such apps provide previously purchased content or subscriptions for magazines, newspapers, books, audio, music and video, according to Apple. Amazon Video and Kindle are also frequently cited as examples of reader apps.

Spotify and Netflix users to pay for services in-app, but have since stopped that form of billing for new members amid a Downloading the Netflix app, for example, will allow you to sign in — but only if you have an existing account. The app otherwise tells you to "join and come back" once you have an account.

Spotify did not immediately respond to a request from CNN Business for comment about the change. Netflix declined to comment.

"To ensure a safe and seamless user experience, the App Store's guidelines require developers to sell digital services and subscriptions using Apple's in-app payment system," Apple said, adding that it is allowing for the change "because developers of reader apps do not offer in-app digital goods and services for purchase."

The update will make it easier for some developers to bypass hefty charges imposed by Apple. The company's commissions go as high as 30% on some purchases made through its platform. Developers have said they have little choice but to comply, since Apple does not allow customers to download apps from any source other than the company's official store.

'DIVIDE AND CONQUER'?

The issue is at the heart of an EU antitrust investigation and a lawsuit brought against Apple by Fortnite-maker Epic Games. A verdict in the Fortnite case is due any day now. Epic CEO that Apple's "special deal" for some media apps amounted to the latest in a "day-by-day recalculation of divide and conquer in hopes of getting away with most of their tying practices."

"Apple should open up iOS on the basis of hardware, stores, payments and services each competing individually and on their merits," he wrote.

Apple's announcement comes about a week after the company said it would relax some restrictions on how iPhone app makers could communicate with customers outside its App Store.

The company said last week that "developers can use communications, such as email, to share information about payment methods outside of their iOS app," as long as users consent to receiving those emails and have the right to opt out.

The announcement also comes after South Korea passed a law that will allow developers to select which payment systems to use to process in-app purchases. That means they may be able to bypass hefty charges imposed by Apple and Google.

Michelle Toh and Rishi Iyengar contributed to this report

CTVNews.ca Top Stories

Two nephews of the beloved Harry R. Hamilton share stories about his life and legacy.

The union representing some 1,200 dockworkers at the Port of Montreal has overwhelmingly rejected a deal with their employers association.

Local Spotlight

For the second year in a row, the ‘Gift-a-Family’ campaign is hoping to make the holidays happier for children and families in need throughout Barrie.

Some of the most prolific photographers behind CTV Skywatch Pics of the Day use the medium for fun, therapy, and connection.

A young family from Codroy Valley, N.L., is happy to be on land and resting with their newborn daughter, Miley, after an overwhelming, yet exciting experience at sea.

As Connor Nijsse prepared to remove some old drywall during his garage renovation, he feared the worst.

A group of women in Chester, N.S., has been busy on the weekends making quilts – not for themselves, but for those in need.

A Vancouver artist whose streetside singing led to a chance encounter with one of the world's biggest musicians is encouraging aspiring performers to try their hand at busking.

Ten-thousand hand-knit poppies were taken from the Sanctuary Arts Centre and displayed on the fence surrounding the Dartmouth Cenotaph on Monday.

A Vancouver man is saying goodbye to his nine-to-five and embarking on a road trip from the Canadian Arctic to Antarctica.

Stay Connected