Home / News / World /  Netflix iOS app to offer external subscription option to avoid Apple's 30% tax

A new update from Netflix’s iOS app will come with an external subscription option that, if chosen, will take users to the company website. According to reports, Apple has been levying a 30% tax on in-app purchases made through the App Store for a while.

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Not only Netflix, but Spotify also gives iOS users the option of an external subscription. A pop-up box notifies the user that Apple is not responsible for the transactions being conducted when they choose the subscription option in the Netflix app for iOS.

The app connects the user to the official website so they can finish the remaining steps of the membership purchase procedure after they choose to continue. Apple has been in the news and is being investigated all around the world because of their in-app transaction strategy.

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EU authorities have already accused Apple of discouraging users from using independent mobile wallets. The company has also been accused of committing a related offence in India.

The Cupertino tech giant let dating apps to forego in-app purchases in the Netherlands but obliged them to still make reduced-rate commission payments on any outside purchases.

Also Read: Why Netflix struggles to crack the Indian market

Apple earlier revealed in a developer update that developers of apps published in the South Korean App Store were no longer required to use the company's own in-app payment system. Instead, developers will be allowed to accept payments through Apple’s pre-approved third-party service providers.

Also Read: Netflix to apply extra fee for shared accounts

The update followed a 2021 Telecommunications Business Act revision in South Korea that forbade major platform owners like Apple and Google from pressuring developers to utilise their first-party in-app payment systems. Google and Apple also opposed the law, with Apple claiming that it would make it more difficult for its consumers to manage their purchases, compromise their privacy rights, and expose them to fraud.

(With agency inputs)

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