Top publishers are reportedly frustrated that Apple offered Amazon a 15% discount on its usual 30% commission and now want the same.
Earlier in the month, court documents confirmed that Apple had been offering Amazon exclusive terms, charging just a 15% commission from subscriptions and in-app purchases made on the App Store and iOS ecosystem. Apple had previously suggested that developers were on a “level playing field” and that everyone paid the same 30% “Apple tax”.
Now, top newspapers and publishers have written an open later, claiming that Apple’s rules stop them from properly investing in quality journalism.
Brands including The Wall Street Journal, The New York Times, and The Washington Post have all suggested that Apple cuts in-app purchases to 15%, in line with what the company has been charging Amazon Prime.
Right now, Apple takes a 30% cut for the first year of any in-app subscriptions, and in the second year, that subscription fee is cut to 15%. But Amazon was able to access the 15% discount from day one, and now brands – including Spotify and Fortnite – are fighting back.
The Wall Street Journal’s involvement in the open letter is pretty significant, as they were involved in Apple News+, Apple’s premium news subscription service. Many other papers and publishers have shunned the platform due to low uptake and Apple’s high percentage.
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