Technology giant Apple Inc. will no longer force media applications to use its purchase system which gains 30% commission on downloads and subscriptions, Bloomberg reported.
- Among the media applications allowed to link to external payment websites are those involved in magazines, newspapers, books, audio, music, and video. The development is scheduled to take place across the globe in early 2022.
- The 30% commission will still be applied on in-app purchases and games, which accounted for $26 billion of $41.5 billion of consumer spending in the first semester. Epic Games Inc. earlier contested purchases in Fortnite.
- The move is in a bid to settle an investigation by Japan’s Fair Trade Commission. It has also vowed to improve the transparency of its app reviews, and furnish the regulator annual reports for the next three years.
- An FTC spokesperson said the voluntary measures were enough for it to close the investigation. The move is set to benefit firms with large businesses on apps and payment services in Japan and Korea more than in other global markets.
Apple earlier removed third-party applications that shifted users to web-based alternative payment options. AAPL is up 0.72% premarket.