Apple tweaks App Store revenue policy, stops taking cut from Amazon Prime Video

In a statement, Apple Inc said, it will stop taking a cut of some sales for “qualifying” streaming video services on iPhones and other Apple devices, including Amazon.com’s Prime Video.

So as to make a cut from online purchases from apps that are there on its App Store, Apple requires developers to use Apple’s own payment systems; Apple takes a commission of between 15% and 30% before passing on the rest to app developer.

Apple’s rivals, including Netflix Inc and Spotify Technology SA, avoid paying such commissions by asking users to sign up with a credit card outside Apple’s App Store.

In 2019, Spotify filed a lawsuit against Apple with the European Union, saying Cupertino’s practices hurt its business since it makes it harder for iPhone users to sign up for Spotify compared to Apple Music.

Spotify has also raised the issue with the U.S. Justice Department and the House Judiciary Committee. Both have antitrust probes pending on Apple.

On Wednesday, Apple lifted the practice for some qualifying purchases.

In a statement Apple said, “qualifying premium video entertainment apps such as Prime Video, Altice One and Canal+, customers have the option to buy or rent movies and TV shows using the payment method tied to their existing video subscription.”

Apple also said “the services will function better with Apple devices and apps, for example by letting users ask its voice assistant, Siri, to find shows on the third-party services.”

However, Apple did not mention when it started this program, or what method it follows to decide which video apps will qualify, or whether Netflix and Spotify will be included in its qualifying premium video entertainment apps category.

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