Jul 27 2011
This revelation has forced many companies to edit their apps, including Amazon and Google. Apple is now only allowing purchases to be made within apps, by doing this the technology giant is becoming the only vendor on the platform it owns.
Publishers affected include The Wall Street Journal, Amazon’s kindle and Google. They began changing their iOS apps to remove references to their online stores, in line with the new Apple App policies, yesterday.
Developments in this area over the past few months mean that Apple now takes a 30 percent cut of the revenue generated through apps.
So readers with the Kindle app on their iPad will have to decide whether to update the app. If the app updates the user will no longer be able to buy books through amazon via the app, instead they will have to go through Apple.
There has been a lot of discussion about the new rules, which have already been revised. Previously Apple was trying to regulate the prices advertised on the app store. They were trying to stop companies advertising a higher price on the app store and therefore intentionally diverting customers back onto their own sites. This rule was later scrapped and many people hoped that Apple would not go through with this new policy. Yesterday, however, they realised that Apple fully intended to follow up on the changes to the app store.
Presumably the heads of the companies affected will be thinking of ways around the current rules, in order to bypass having to pay 30 percent of the revenue generated by apps to Apple. Some companies have already launched HTML5 apps, including the Financial Times. The way the HTML5 apps work is not that different from the normal apps. You go to a specific web address and follow directions to add the app to your home screen. You need to have an internet connection to buy content, but when you sync your library you can view it offline.
This move may also now force book sellers to list items on the iBookstore, in order to keep in with the iPad content buyers.
Although this latest development is good for Apple, the new rules make it harder for users to buy content through the app store.