Apple Opens 'Web Payment' Gateway for Spotify and Netflix Apps

Apple Announces New Update Plan Following Japan Fair Trade Commission Investigation and Sanctions
To Be Applied Early Next Year
Allows Inclusion of Web Links in Content Subscription 'Leader Apps'

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Minyoung Cha] Starting next year, iPhone users will be able to make payments directly through website links within apps for content subscription services, commonly known as 'reader applications (apps)'.

On the 2nd, Apple announced that, following the investigation and sanctions by the Japan Fair Trade Commission (JFTC), it plans to implement an App Store update early next year that will apply to all reader apps worldwide. Users will also have increased discretion to set up or manage their accounts on the respective websites.

Reader apps refer to apps that provide subscription services for content such as previously purchased digital magazines, newspapers, books, audio, music, and video. Representative examples include the music streaming service Spotify and the online video service (OTT) Netflix.

For example, Spotify is a reader app that offers both free and paid services. Previously, consumers could not make payments within the app for the paid premium service, and there was no separate notice due to App Store policies. With this change, web links will be included on the app screen, allowing consumers to access the premium service payment directly via the web link.

The practice of forcing in-app purchases (payments made through an internal payment system developed by the app market) on app developers is also expected to gradually disappear. In Korea, this is interpreted as a result of the recent final passage of the so-called 'Google Gapjil Prevention Act' (an amendment to the Telecommunications Business Act) that prohibits forced in-app purchases, alongside the global intensification of antitrust regulations against big tech companies.

Apple stated, "While in-app purchases through the App Store payment system remain the safest and most reliable payment method for users, we plan to continue supporting reader app developers to protect them when linking users to external websites for purchases."

Meanwhile, on the 27th, Apple revised its policy to allow developers who release apps through the App Store to inform consumers of payment methods other than the App Store.