In recent days, the iPhone app changes. The Kindle app now allows people to shop books directly from its website. Spotify offers users a free trial version. And Patreon, a prepaid service, allows people to pay more money to people.
Changes are a timely view of how a recent court decision could transform a shopping experience on the iPhone. Last week, the federal judge ordered Apple to allow applications to offer promotional actions and collect payments directly from users. This decision allows applications to offer people new conveniences such as buying books directly from their website. The decision also allows applications to bypass the 30 % commission that Apple collects every time you sell applications, which could lead to lower consumer prices.
For more than ten years, Apple demanded that the applications use their payment system for purchases and collected commission for sale.
Now it’s all open to change. Here’s what might vary in the future and why.
What did the judge ruled?
Judge Yvonne Gonzalez Rogers, who began working in this case after Epic Games sued Apple in 2020, decided that Apple could no longer make the commission from the application connecting from the application. It has also reduced the company writing a rules that would prevent developers from creating buttons or links that allow people to pay applications directly for their goods and services, and stated that it cannot create messages – known as warning screens – that discourages users from leaving applications.
Amazon asked to update his Kindle app to allow people to buy books.Credit…Kindle
How will iPhone change?
For years, Kindle has not sold books in his application to avoid 30 % of Apple’s commission. He now added the “Get Book” button that directs users to their website to buy books. Similarly, Apple has prevented Spotify from free attempts to new customers, but now the Spotify button has a button in its three -month attempt.
Other applications could start offering links to buying directly from online stores, which would allow the business to avoid 30 % of Apple’s commission. Without paying these fees, applications can offer lower prices to users and reduce a monthly subscription of $ 10 to $ 7.
What will it cost Apple?
According to Morgan Stanley estimates, Apple earns $ 11 billion a year from the sale of applications in the United States. It doesn’t lose it all, but the bank estimates that $ 2 billion is now at risk.
How much Apple loses, how willing people should change their behavior. The ten -year process of purchasing software and services on applications is not only known but also fast. People trust Apple with information about their credit card. And the company makes it easier for people to cancel their subscriptions – to keep them all in one place. Many people can relieve the App Store to make their purchases, and the applications may prefer to maintain the current system.
What does it mean for the rest of the world?
Now that Apple is obliged to enable applications to directly collect payments without paying the company in the United States, other countries will project similar concessions. Regulators in Europe, Japan and South Korea who asked Apple to release its grip in the app store would not want their own citizens or developers to have to pay more than Americans.
Could Apple return changes?
Apple said he was planning to appeal against the decision, but it would be difficult for the company to turn the decision override. In 2021 the judge wrote a less prescribed decision. Apple surrounded the rule by introducing a 27 % commission for the sale of applications. Since 2021, the US Court of Appeal has agreed to the judge’s initial decision and is unlikely to change its position, said Mark A. Lemley, Professor of the Antimonopoly and Technology Act in Stanford. “They should take their licking and let it be,” he said.
