Apple Inc. is going to allow some apps to link users to their websites to sign up for a subscription, settling an investigation by the Japan Fair Trade Commission (JFTC).
The tech giant had required developers to direct users to Apple’s billing, which siphons off 15% to 30% of the gross sale, according to CNBC. In a news release, Apple said the change will go into effect in early 2022 and the company will update all guidelines to ensure a safe process.
“Trust on the App Store is everything to us,” Phil Schiller, an Apple employee who oversees the App Store, said in the statement. “The focus of the App Store is always to create a safe and secure experience for users, while helping them find and use great apps on the devices they love.”
Apple acknowledged that the agreement was made with the JFTC, but added in the statement that the change will be made globally to all reader apps, such as Netflix and Spotify, that are available on the store. It will not apply to most games.
“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,” Schiller said in the statement.
The announcement wraps up the five-year investigation by the JFTC, and Spotify CEO Daniel Ek told The New York Post the announcement is a “step in the right direction,” though it doesn’t completely resolve the issue.
“Our goal is to restore competition once and for all,” he told The Post.
Companies like Spotify and Netflix had argued that the restrictions Apple placed on payments outside of its app store put them at a competitive disadvantage. The Wall Street Journal reported that they will now be able to have an in-app link on their own apps.
Amid the resolution of the JFTC, Apple could be facing some choppy waters at home, with lawmakers pushing legislation that would create new rules for app stores. According to a Wall Street Journal report, the Open App Markets Act is a bipartisan proposal introduced last month by Sen. Richard Blumenthal (D-Conn) and Marsha Blackburn (R-Tenn.) with co-sponsor Sen. Amy Klobuchar (D-Minn.). It would level the playing field for app developers and the tech giants like Apple and Google.
Apps remain a major worldwide source of revenue for Apple, with the Wall Street Journal reporting that the company received $53.8 billion of its nearly $275 billion in revenue from Apps. It was a similar story with other companies, Alphabet, the parent company of Google, generated $182.5 billion in revenue, with Google Play apps making up $21.7 billion of that total, according to the Wall Street Journal.