Netflix is rolling out an update for its iOS app that adds an external subscription button, which redirects users to the Netflix website for completing their subscription process. Apple has been in the news for its practice of charging up to 30 percent commission on in-app transactions through the App Store. This eventually drove companies like Netflix and Spotify to remove the in-app subscription button. Prior to this update, the Netflix app on iOS only featured the 'Sign In' button; new users had to purchase the subscription externally before attempting to log in through the app.
The Netflix app on iOS now displays a prompt when users tap the subscription button notifying them that the transaction will not be a responsibility of Apple. Hitting 'Continue' takes users to the Netflix website via a Web browser of their choice where they can complete the subscription process.
Apple had to allow Netflix and other companies from linking their websites following a settlement with Japan's antitrust regulator last year. It had to loosen its App Store rules to permit external links on so-called 'reader apps', which feature content like music, videos, ebooks, and more. The Cupertino company still retains control over the criteria for qualifying an application as a reader app.
Apple's policy to direct in-app purchases through the App Store has come under global scrutiny in recent years. EU regulators have accused the company of abusing its dominant position and unfairly restricting access to third-party mobile wallets. The company could be forced to open its mobile payment options. Apple is also facing similar charges in India for using anti-competitive practices in relation to payments for digital content.
In related news, the Cupertino company offered dating apps in the Netherlands the option of skipping Apple's in-app payments system. The developers would still be required to pay commissions on payments made externally, albeit at a slight discount.
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