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Business Management Review | Friday, February 25, 2022
Netflix, Spotify, and other similar services will now be able to add a link in their iOS apps that take users to their websites for payment and account management.
FREMONT, CA: Netflix, Spotify, and other comparable services will now be permitted to include a link in their iOS apps that directs customers to their websites for account management and payment. Apple now permits reader app developers to link to a website they control. Apps that offer previously purchased material or content subscriptions for digital periodicals, newspapers, books, radio, music, and video," according to the tech giant, are considered reader apps.
As part of a settlement with the Japan Fair Trade Commission, Apple stated last year that it would allow select media services to include in-app links. Because the apps "do not offer in-app digital products and services for purchase," the business consented to the restriction. While the adjustment was made in response to the JFTC's probe, Apple will now apply the new policy to worldwide reader apps. However, before they can create in-app links, developers must first request access to the External Link Account Entitlement program. While the shift allows developers to avoid paying Apple a 15 to 30 percent cut, Apple will continue to receive commissions on purchases made within the app if the service offers them.
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Google also recently established a trial program in Android to test third-party billing systems, allowing customers to pay for services using either Google's or the developer's payment system. Starting later this year, Spotify, one of the apps testing the capability, will offer subscribers both Google's and its pricing systems. Even if the consumer opts for the service's billing system, Google will still receive a cut. However, it will be less than the 15% commission the internet giant generally receives for subscriptions.
Apps that provide these digital items as a sidebar to their primary function will not be eligible for the External Link Account Entitlement, according to Apple. Nonetheless, this step helps Apple break a long-standing tendency.
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