What the Tech: App store changes
A major change is happening inside Apple’s App Store, and it could mean lower prices and more options for iPhone and iPad users. But for Apple, it’s a financial blow, and possibly a legal one.
For years, Apple has taken a commission on nearly every purchase made inside an iOS app. That includes subscriptions to services like Spotify, digital books from Amazon’s Kindle app, and in-app game upgrades. The cut Apple took was as high as 30 percent, later adjusted to 27 percent in some cases.
Not only did Apple collect those fees, but it also didn’t allow apps to tell users they could pay elsewhere, often at a discount. If you wanted to buy a book from Kindle or subscribe to a service, your only in-app option was to pay through Apple. That meant many apps simply disabled purchases altogether, forcing users to open a web browser and complete their transaction on a separate website.
Other apps charged customers more to make up for commission fees.
That’s now changing.
A federal court has ruled that Apple can no longer prevent developers from linking to outside payment options. Apps can now tell users where to go to complete purchases, and Apple won’t receive a cut of those sales.
Amazon has already rolled out a new “Get Book” button inside the Kindle app that takes users directly to the checkout page on its website. Spotify is updating its app to allow fans to support creators directly. And Epic Games is bringing Fortnite back to iOS after it was pulled from the App Store in 2020 for violating Apple’s payment rules.
These changes could mean more competitive pricing, more direct support for creators, and less frustration for users trying to make simple purchases.
Apple, however, is appealing the ruling. And the judge is also reviewing whether Apple may have broken the law by ignoring an earlier court decision from 2021.
A class-action lawsuit has also been filed against Apple on behalf of developers who claim they lost hundreds of millions of dollars due to Apple not following the court’s ruling nearly five years ago.
If you don’t see these changes yet, make sure your apps are updated. Many developers are still rolling out updates to take advantage of the new freedom.
