After the fall out with Epic games over its policy of taking a cut from sales through its App Store, major news publishers have now decided to stand up against the United States based tech giant Apple Inc on its commission policy.
News outlets have demand that apple give them more favorable terms with respect ot the commission that the iPhone maker charges from them on any payments made to the news publishers through its app store. This was claimed in a letter posted by a trade body on Thursday.
Addressed to Apple Chief Executive Officer Tim Cook, this letter was posted on its website by Digital Content Next (DCN), an industry body that represents The New York Times, the Washington Post, the Wall Street Journal and other publishers,
Typically, Apple charges a commission of between 15 per cent and 30 per cent from the news publishers for all first-time subscription transactions that are made through apps on the iPhone maker’s app store. A concession is however provided by it to Amazon.com.
The reduced rate was available to any developer who met certain conditions, said Cook in a House Judiciary Committee hearing in the United States last month.
DCN Chief Executive Officer Jason Kint suggested in Thursday’s letter to Cook that the news publishers should qualify for the same terms offered to Amazon for its Prime Video app on Apple’s app store.
“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.”
In the letter, the industry body quoted a negotiation that had taken place between Apple veteran Eddy Cue and Amazon CEO Jeff Bezos in which the two companies had agreed on a 15 per cent revenue sharing deal on any new paid subscriptions for the Amazon’s Prime Video through the app store of Apple. The email emerged during the Committee hearing on July 29.
This latest move by the news publishers follows a legal spat between Epic Games and Apple after the iPhone maker removed Epic Games’ very popular game “Fortnite” from its app store over allegations of the gaming company violating its in-app payment guidelines. That move prompted Epic to file federal lawsuits against Apple’s rule of commission and in-app only rule.
No immediate comments from Apple and Amazon were available in the media on the issue.
(Adapted from EconomicTimes.com)