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Apple to Let Media Apps Avoid 30% Fee After Global Scrutiny

  • Move will affect commissions on music, video, newspaper apps
  • Decision marks a shift to fend off further antitrust scrutiny
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WATCH: Apple is addressing a longstanding App Store complaint, and settling an investigation by Japan’s Fair Trade Commission. Su Keenan reports.

(Source: Bloomberg)

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Apple Inc. will allow developers of some apps like Netflix to link from its App Store to external websites for payments by users, a modest concession to global scrutiny of the 30% cut it typically takes from services and purchases on the iPhone.

The Cupertino, California-based technology giant said the change, settling an investigation by Japan’s Fair Trade Commission, will go into effect globally early next year for so-called reader apps spanning content like magazines, newspapers, books, audio, music and video. To date, Apple has forced such applications to use its in-app purchase system, which gives Apple up to a 30% commission on downloads and in-app subscriptions. That rule will still apply to games, the most lucrative class of mobile apps, as well as in-app purchases.