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April 2, 2020 10:50 pm

Apple Will Stop Taking a Cut of Some Video App Purchases Made Through the App Store

Yesterday, Apple said it would stop taking a cut of some sales for "qualifying" streaming video services on iPhones and other Apple devices, including Amazon's Prime Video. Reuters reports: To make purchases inside apps on its App Store, Apple requires the use of its own payment systems and takes a commission of between 15% and 30% before passing on the rest to the third-party app developer. Many of Apple's rivals in streaming music and video, such as Netflix and Spotify, avoid paying those commissions by asking users to sign up with a credit card outside the App Store. That leaves those rivals' apps serving as log-in screens for existing customers. In an emailed statement, Apple said that for "qualifying premium video entertainment apps such as Prime Video, Altice One, and Canal+, customers have the option to buy or rent movies and TV shows using the payment method tied to their existing video subscription." Apple also said the services will function better with Apple devices and apps, for example by letting users ask its voice assistant, Siri, to find shows on the third-party services. Last March, Spotify filed a complaint with EU antitrust regulators against Apple, saying the iPhone maker unfairly limits rivals to its own Apple Music streaming service. Spotify also raised the issue with the U.S. Justice Department and the House Judiciary Committee, "both of which have antitrust probes pending regarding Apple," notes Reuters.

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