Fine, you can skip my tax

After years of disputes on “Apple tax”, Apple finally gave in – it will allow some apps to link to their own websites for payment and bypass its “tax”.

Wait… Apple tax? How does it work?

Have you tried to buy an app or make a membership subscription on iPhone? App developers can only get 70% of our money, and Apple takes the remaining 30% as the commission for using their payment system – that’s called an “Apple tax”.

  • We have no choice 🚫 Developers must use the system, or Apple will ban them from using its app stores.
  • Take Netflix as an example: We could not subscribe to Netflix on the iPhone app, but instead we had to manually go to the website and subscribe.

Now, Apple is allowing some apps to sidestep this “tax” – a certain range of apps can add a button and link us their own websites directly to continue the payment, instead of just reminding us.

  • Who’s covered? Mostly content creators, like magazines, newspapers, books, audio, music and video (aka. reader apps)

That’s cool! Why did Apple change its mind?

Arrr… because Apple is currently in trouble everywhere – all about its “Apple tax” and its app store monopoly.

  • In S.Korea 🇰🇷 The government just passed the “anti-Google law” to curb Apple + Google’s dominance over the app store… and stop their “tax”.
  • In the US 🇺🇸 Apple just settled a lawsuit – by allowing app developers to promote alternative payment methods via emails.
  • In Europe 🇪🇺 There’s an ongoing lawsuit between Apple and Epic Games – for forcing developers to use its payment system.
  • In India 🇮🇳 The government just started a probe against the same issue yesterday.

With this change, will there be less lawsuits against Apple?

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