Apple is being compelled to amend its long-standing App Store policy prohibiting developers from advertising third-party in-app payment solutions in select areas outside of the United States. Apple has been able to receive its 15 percent to 30 percent cut of in-app income earned by the App Store thanks to this arrangement. On March 30, Apple stated that “reader” applications can give users access to membership sites where they can join up for services or manage their accounts, marking a significant shift in the company’s regulations.
Reader Apps In The App Store Must Update Policies
Apps that transmit material such as periodicals, newspapers, books, radio, music, or video are known as reader apps. For example, Spotify, a music streaming service, would fall within this category.
Spotify has been one of the most vocal critics of Apple’s in-app payment approach, even refusing to let users transfer from the free ad-supported subscription to the premium paid service via the App Store.
These apps can be published in the App Store as long as the creators don’t try to get members to pay through other means. While Apple consented to the modification just to have the Japanese Fair Trade Commission drop its antitrust inquiry, it is expected to be implemented globally.
According to AppleInsider, JP Morgan analyst Samik Chatterjee believes that allowing third-party platforms to conduct in-app purchases for reader applications will mitigate the impact on Apple’s bottom line.
According to the researcher, the top ten reader apps generate less than 8% of the total income of those applications. The top 20 make up around 10% of the population, whereas the top 50 make up 13%. In the end, according to the JP Morgan analyst, modifying Apple’s payment strategy for reader applications will not damage the company’s earnings.