Netflix Ends In-App Payments, Apple Faces EU Web App Inquiry

Netflix announces that in the near future, subscribers who continue to remit their monthly fees via the App Store in-app purchase system will be required to update their payment methods in order to maintain the functionality of their accounts.

Netflix Shifts Payment Strategies and Ends In-App Subscription Fees on Apple Devices

While the ability to subscribe to Netflix's streaming service on iOS devices was discontinued in 2018, existing subscribers have been granted the option to continue making payments through in-app purchases. Netflix, on the other hand, has decided to discontinue payment via Apple's platform because it no longer wishes to pay Apple a 15 percent share of subscription fees.

The U.S. Netflix support site now lists "some" countries where consumers will be required to add a new payment method, as reported by 9to5Mac. The specific countries to which the new Netflix policy pertains are not specified; however, considering its inclusion on the U.S. site, it is probable that it affects consumers residing in the United States.

It is unknown how many Netflix subscribers continue to pay via in-app purchases since the feature was discontinued by the company almost six years ago. Customers with Apple devices have been required to register for a new Netflix subscription on the Netflix website since 2018. Subscribing to Netflix via the application on an iPhone or iPad is not possible; instead, these devices present the sign-in screen.

Netflix stated customers who paid for subscriptions through in-app purchases could continue to use that invoicing method until their accounts were canceled when it initially removed the option to pay via the App Store. However, it appears that Netflix has lost its tolerance for this request.

On the heels of the second beta release of iOS 17.4, it came to light that Apple had imposed limitations on the functionality of iOS web applications within the European Union. Web applications are no longer able to be launched from the "Home Screen" in a full-screen, top-level window; instead, they are relegated to a shortcut with the option to open in Safari. The action, according to critics, undermines the viability of web applications as alternatives to native applications on iOS.

EU Scrutinizes Apple's Web App Changes Amid Digital Markets Act Compliance Efforts

In what appears to be a prelude to an in-depth investigation, EU competition regulators questioned developers last week regarding the consequences of the modification. The European Commission informed the Financial Times of its investigation:

“We are indeed looking at the compliance packages of all gatekeepers, including Apple. In that context, we're in particular looking into the issue of progressive web apps, and can confirm sending the requests for information to Apple and to app developers, who can provide useful information for our assessment.”

Apple asserts that for iOS to conform with the Digital Markets Act (DMA) of the European Union, it was required to modify the way web applications function. The company argues that third-party browsers used with web applications in Europe could expose users to unauthorized security and privacy risks. It is of the opinion that the modifications will solely impact a minority of users.

An investigation into web applications may ensue subsequent to the March 6 deadline for Apple to abide by the DMA; however, the initiation of formal proceedings may be averted should Apple provide additional concessions.

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