In recent days, iPhone applications have a leg change. The Kindle application now allows people to buy books directly from their site. Spotify offers users free tests. And Patreon, a subscription service, is allowing people to pay money to creators.
The changes are an early look at how a recent court ruling could transform the purchase experience into an iPhone. Last week, a federal judge ordered Apple to begin allowing applications to offer promotions and collect payments directly from users. The decision makes it possible for applications to offer people new, such as buying books directly from their website. The ruling also allows applications to overlook a commission of up to 30 percent that Apple collects in each sale of applications, which could lead to lower prices for consumers.
For more than a decade, Apple required Apps to use its payment system for purchases and raised the commission on sales.
Now, all that is open to change. This is what could be different in the future and why.
What ruled the judge?
Judge Yvonne González Rogers, who began working in this case after the epic games demanded Apple in 2020, ruled that Apple could no longer take sales commissions that link from the application. He also restricted the company of the ingenuity rules that would prevent developers from creating buttons or links that allow people to pay applications directly for their goods and services, and said that I could not create messages, known to the application, ThatTortesers.
How will iPhone applications change?
For years, Kindle has not sold books in its application to avoid the commission of 30 percent Apple. Now, he added a “Get Book” button that leads users to their website to buy books. Similarly, Apple prevented Spotify from offering free tests to new customers, but now Spotify has a button on its application for a three -month test.
Other applications could start offering links to buy directly in online stores, which would allow the business to avoid having to pay the Apple percent commission. Without having to pay those rates, applications could offer users lower prices, reducing a monthly subscription from $ 10 to $ 7.
What will cost Apple?
Apple wins $ 11 billion a year for applications sales in the United States, according to Morgan Stanley estimates. He won all that, but the bank estimates that $ 2 billion of that is now at risk.
The amount that Apple loses will be reduced to how willing people are to change their behavior. The decade process to buy software and services in applications is not only familiar but also fast. People trust Apple with their credit card information. And the company makes it easier for people to cancel their subscriptions, keeping them all in one place. Many people can be reluctant to leave the App Store to make their purchases, and applications may prefer to maintain the current system.
What does this mean for the rest of the world?
Now that Apple is required to allow applications to charge payment directly, without paying the company’s commission, in the United States, other countries will press for similar concessions. Regulators in Europe, Japan and South Korea, who have been asking Apple to loosen is a control of the App Store, would not want their own citizens or developers to have to pay more than the Americans.
Could Apple revert the changes?
Apple said he planned to appeal the ruling, but it would be a challenge for the company to have the decision in excess. In 2021, the judge wrote a less prescriptive decision. Apple bordered the rule when introducing a 27 percent commission for applications sales. The United States Court of Appeals for the ninth circuit was put on the side of the initial decision of the judge of 2021 and it is unlikely to change its position, said Mark A. Lemley, a professor of antimonopoly and technology at Stanford. “They should take their licks and let it be,” he said.