Google has secured the ability to sell e-books and audiobooks directly to users through its iOS app, Google Play Books. This development allows Google to circumvent Apple‘s standard 30% commission on in-app purchases, a move facilitated by processing transactions on Google’s website instead. This strategic shift follows Apple’s introduction of the External Link Account Entitlement, a provision resulting from a settlement with the Japan Fair Trade Commission (JFTC) in 2022.
Apple’s External Link Account Entitlement and Its Impact
To leverage this entitlement, developers like Google must seek additional approval from Apple and adhere to specified guidelines. The option was first adopted by Netflix in 2022, enabling users to sign up for subscriptions via its website, bypassing Apple’s commission fees. Google’s move to apply this exception now enables users to purchase digital content directly from the Google Play website after being redirected from the iOS app.
In practice, Google Play Books users will see a “Get book” button within the app, which will direct them to Google’s website to finalize their purchase using their Google Account and saved payment information. Before proceeding, users will encounter a full-screen notification informing them that they are no longer transacting with Apple, ensuring transparency about the purchasing process.
Moreover, the new setup enhances the user experience by allowing customers to share purchased books with family members through Google Play’s Family Library. This feature is accessible across platforms including iOS, Android, and the web, offering a seamless experience regardless of the device used.
The backdrop to these changes includes a legal battle that reached the Supreme Court. However, in January 2024, the Court declined to hear an appeal regarding the External Link Account Entitlement, allowing lower court rulings to remain in effect. Consequently, services such as Google Play Books can now officially incorporate this exception into their operations.
Author’s Opinion
Google’s ability to bypass Apple’s in-app purchase commission is a game-changer for both developers and consumers. By streamlining the purchasing process and allowing more control over transactions, Google enhances the overall user experience. At the same time, this move reflects a shift in the app economy, where developers are increasingly finding ways to circumvent high commission rates that have long been a source of contention. While this change is positive for consumers, it remains to be seen how Apple will respond and if other companies will follow suit.
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