iPhone maker Apple is the world’s highest rated company with more than $2.4 trillion
After pressure from competitors such as the Epic Games studio and from governments, Apple announced on Wednesday night, 1st, that it will start allowing payments outside the company’s app store, reversing the company’s internal policies, which charged up to 30% of all purchases made on the App Store.
The decision comes after the end of a lawsuit by the Japanese competition authority, which since 2019 has been investigating alleged anti-competitive practices by the iPhone maker. As part of the deal, Apple will allow developers at the company’s app store to redirect users to external links where they can subscribe to services. Until then, the tech giant claimed that the measure exposed the security of its users.
Applications from music, books, newspapers, magazines and video will be the most impacted by the measure, which could escape the “bite” of the company and fatten the revenue generated via iPhone, iPad and Mac and other Apple devices. The measures will only take effect in 2022.
The App Store will also maintain the internal payment system, which will continue to charge developer fees.
“Trust in the App Store is everything to us. The focus has always been on creating a safe environment for users, helping them find and use the great apps on the devices they love so much,” said Phil Schiller, responsible for overseeing the company’s app store rules.
It’s not clear what the impact of this measure might be on Apple’s service revenue, a category that has been expanding at a rapid pace in recent years and seen as one of the strongest pillars in the company’s future, alongside iPhone sales.