The external subscription button, which directs customers to the Netflix website to complete their subscription process, has been added to the iOS version of the Netflix app. Apple has received media attention due to the practice of collecting up to 30% commission on in-app purchases made through the App Store. The in-app subscription button was eventually removed by companies such as Netflix and Spotify. The Netflix app for iOS only had a “Sign In” option prior to this upgrade; new users had to purchase a membership elsewhere before attempting to check in through the app.
When users press the subscription button in the Netflix app for iOS, a prompt will appear warning them that the transaction would not be Apple’s responsibility. Clicking “Continue” directs consumers to the Netflix website using their preferred web browser, where they can complete the membership process.
After a resolution with Japan’s antitrust regulator last year, Apple was forced to allow Netflix and other companies to link to their websites. To allow external links to so-called “reader applications”, which offer content such as music, videos, ebooks and more, it had to be App Store policy. The standards for determining whether an application qualifies as a reader app still falls under the authority of the Cupertino company.
In recent years, Apple’s decision to direct in-app purchases through the App Store has drawn criticism from around the world. The company has been accused of abusing its dominant position and unlawfully restricting access to third-party mobile wallets by EU regulators. The company could be forced to make its mobile payment options available. Similar allegations against Apple for using anti-competitive methods in connection with payments for digital content are now being leveled in India.
In related news, the Cupertino company gave Dutch dating app users the choice to opt out of Apple’s in-app payment model. Although with a small discount, the developers would still be required to pay commissions on external payments.
