Sunday 16 February 2020 12:32 pm

Youtube TV withdraws from App Store in blow to Apple

Youtube TV is set to become the latest subscription service to cut ties with Apple’s App Store amid complaints about the hefty fees charged by the tech giant.

The TV streaming service last week told customers that from next month it will no longer accept payments through Apple in-app purchases.

Read more: Brands told to turn to Youtube ads as young TV viewers tune out

The iPhone maker takes a 30 per cent cut of any purchases made through the more than 2m apps available on its store for the first 12 months, falling to 15 per cent after that.

The fees, which are an important source of revenue for Apple’s expanding services division, have sparked outrage among app publishers who have branded them the ‘Apple tax’.

Netflix and Spotify have both stopped accepting payments via the App Store. Spotify last year filed a complaint to the European Commission, arguing that Apple’s practice of taking fees was anti-competitive. Apple Music — Spotify’s main rival — is not subject to the charges.

However, Apple has described the accusations as an exaggeration, saying that it only collects a fee on less than one per cent of its rival’s user base.

Youtube TV decision to withdraw from the store is a bold move, however, as it will risk losing customers in the process.

Read more: Apple fined for slowing down old iPhones

In an email to customers, seen by MacRumours, the firm said it will automatically cancel any subscriptions made through in-app purchases after 13 March.

Youtube TV customers will be able to continue using the service on Apple devices, but will need to sign up for a new subscription on its website.