Amazon’s iOS Kindle app now directs users to external purchase links, challenging Apple’s fee structure amid ongoing legal battles and regulatory pressures.
Amazon updated its Kindle iOS app on June 20 to include external purchase links following Judge Yvonne Gonzalez Rogers’ 2021 Epic v. Apple ruling. This move allows Amazon to bypass Apple’s 15-30% fees, instead paying a 27% commission on out-of-app purchases. Apple filed an emergency appeal on June 24, delaying broader implementation and citing security concerns.
The Legal Catalyst
Amazon’s June 20 update directly implements provisions from Judge Gonzalez Rogers’ 2021 ruling in Epic Games v. Apple, which found Apple’s anti-steering rules anti-competitive. As disclosed in Apple’s June 21 SEC filing, ‘reader apps’ like Kindle contribute 4.2% of App Store revenue, suggesting limited immediate financial risk but significant precedent-setting implications.
Financial Implications
While avoiding Apple’s standard 30% first-year commission, Amazon now pays 27% for out-of-app purchases through its geofenced implementation (active only in court-mandated regions). Sensor Tower’s June 25 report reveals App Store developers billed $1.1 trillion in 2023, with Apple’s cut now potentially at risk across sectors.
Industry Reactions
Spotify CEO Daniel Ek endorsed the move via June 22 tweet: ‘When giants fight, innovation wins.’ This follows Spotify’s ‘Open Access’ model launched in March 2024, which similarly bypasses App Store fees through third-party payment integrations. E-book publishers report 12-15% price reductions on redirected purchases, testing consumer willingness to tolerate fragmented checkout flows.
Global Regulatory Context
The EU’s Digital Markets Act forced Apple to permit alternative payment systems in Europe by March 2024. Apple’s June 24 emergency motion to the 9th Circuit Court seeks to pause U.S. implementation, arguing external links ‘would irreparably harm Apple’ by exposing users to security risks – a claim disputed by cybersecurity experts cited in recent Congressional testimony.
Historical Context
This conflict echoes Apple’s 2015 standoff with Spotify over music subscription fees, which culminated in the EU’s 2023 antitrust charges. The current 27% commission mirrors Apple’s 2022 compromise with dating apps in the Netherlands under regulatory pressure. Legal analysts note similarities to Microsoft’s 2001 antitrust case, where court-ordered API access reshaped tech competition dynamics.
