Google Skirts Apple’s Fees with New In-App Purchasing Strategy

Google has devised a way to bypass Apple's in-app purchase commissions by directing transactions through its own website. This development follows Google's successful application for the External Link Account Entitlement, which allows users to purchase e-books and audiobooks directly through the Google Play Books iOS app. This move aligns Google with companies like Netflix, which adopted this strategy in 2022 under the new rules stemming from Apple's settlement with the Japan Fair Trade Commission (JFTC).

The entitlement permits iOS apps to offer access to content purchased outside of Apple's ecosystem, provided developers obtain specific approval and adhere to Apple's guidelines. Google has now gained such permission, enabling users to buy books directly using their Google Account and saved payment methods. This strategic shift allows users to see their recently opened book listings and share their purchases with family members via Google Play's Family Library, independent of the device used.

The Supreme Court's decision in January 2024 to deny hearing an appeal has left the ruling from lower courts intact, potentially influencing Google's timing in implementing this change. Although Google has not clarified why it delayed offering direct purchases until now, it is speculated that the company awaited the outcome of the lawsuit between Epic Games and Apple.

Sarah, a seasoned reporter for TechCrunch since August 2011, has been closely following these developments. Her experience spans over a decade, including a tenure at ReadWriteWeb and an extensive background in I.T. across various industries. Her insights reflect the evolving landscape of app store policies and the growing autonomy developers are gaining in managing their transactions.

In order to utilize the entitlement, developers must not only request additional approval from Apple but also comply with specific rules. A notable aspect of this process is a full-screen announcement that alerts users when they are no longer transacting within Apple's system after clicking an external link. This transparency is crucial for maintaining user trust and clarity.