Apple Facing Push Back From News Publishers Over App Store Terms

Apple usually takes a cut that ranges between 15 percent and 30 percent from news publishers for first-time subscriptions made through apps on the store.

By Reuters | Updated: 21 August 2020 12:42 IST

Apple Facing Push Back From News Publishers Over App Store Terms

Photo Credit: Reuters

Apple has a reduced rate for Amazon which led to the pushback

Highlights

Apple's reduced rate for Amazon in App Store questioned
DCN and other publishers, posted a letter, addressed to Apple CEO
The latest missive comes days after Apple removed Epic Games' 'Fortnite'

Major news publishers are seeking more favourable terms from Apple on commissions the iPhone maker collects from them on payments made through its app store, according to a letter posted by a trade body on Thursday.

Digital Content Next (DCN), which represents New York Times, the Washington Post, the Wall Street Journal and other publishers, posted the letter, addressed to Apple Chief Executive Officer Tim Cook, on its website.

Apple, which usually takes a cut that ranges between 15 percent and 30 percent from news publishers for first-time subscriptions made through apps on the store, has a reduced rate for Amazon.

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In a House Judiciary Committee hearing last month, Cook said the reduced rate was available to any developer who met certain conditions.

News publishers should qualify for the same terms offered to Amazon for its Prime Video app on Apple's app store, DCN Chief Executive Officer Jason Kint suggested in Thursday's letter to Cook.

"I ask that you clearly define the conditions that Amazon satisfied for its arrangement so that DCN's member companies meeting those conditions can be offered the same agreement."

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The letter cited communication between Apple veteran Eddy Cue and Amazon CEO Jeff Bezos where the two companies agreed on a 15 percent revenue-sharing deal for new customer sign-ups for Prime Video through app store. The email emerged during the Committee hearing on July 29.

The latest missive comes days after Apple removed Epic Games' Fortnite for violating in-app payment guidelines, prompting Epic to file federal lawsuits challenging the rule.

Apple and Amazon did not immediately respond to requests for comment.

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