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Netflix to bypass Apple’s In- app purchase charges with new subscription button

Apple has been apparently charging a 30 per cent fee on in-app purchases made through the App Store for some time. This new feature will allow users to buy subscription directly from the Netflix's website.

Updated on: Jul 26, 2022, 16:51:00 IST
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A new upgrade for the iOS app of OTT service Netflix will include an external subscription option that, when selected, would direct users to the company's website.

Netflix is apparently incurring 30 per cent fee on Apple in-app purchases.  (AFP for representation)
Netflix is apparently incurring 30 per cent fee on Apple in-app purchases.  (AFP for representation)

According to reports from Mashable, Apple has been apparently charging a 30 per cent fee on in-app purchases made through the App Store for some time.

When a user selects the subscription option in the Netflix app for iOS now, a notification stating that Apple is not liable for the transactions being made appears in the pop-up window. When the user selects continue, the app directs them to the official website, where they may complete the remaining steps of the membership purchasing process.

However, the users are now prompted with warning message as they choose to subscribe through external link.

The message reads “Any accounts or purchases made outside of this app will be managed by the developer “Netflix.” Your App Store account, stored payment methods, and related features, such as subscription management and refund requests, will not be available. Apple is not responsible for the privacy or security of transactions made with this developer.”

ALSO READ: Apple faces grave legal threat, goes on trial over 'walled garden' app store

This move of Netflix to introduce the new feature is seen as part of an ongoing battle between Apple and Netflix. In 2018, Netflix had expunged the feature of subscription to its services through the App store. It is to be noted that, at the same time, Apple blocked Netflix from directing its potential subscribers directly to its website from the app.

Due to its in-app transaction strategy, Apple has been in the headlines and under investigation all over the world. Not only did Netflix do this, but Spotify also provided an external subscription option to its iOS app.

The tech giant was previously charged by EU regulators with preventing consumers from using independent mobile wallets. The business has also been charged with a similar offence in India, as reported by Mashable.

The Cupertino tech giant let dating apps skip the in-app purchases in the Netherlands, but they were still required to pay commissions on any external purchases at a reduced rate.

(With inputs from ANI)