November 17, 2024

Major News Publishers Join Battle Against Apple Over App Store Terms

Posted August 20, 2020 at 7:40pm by iClarified · 5298 views
A group of major news publishers have joined the battle against Apple over its App Store terms, reports the WSJ.

In a letter to Apple Chief Executive Tim Cook on Thursday, a trade body representing the New York Times, the Washington Post, The Wall Street Journal and other publishers said the outlets are looking to qualify for improved deal terms to keep more money from digital subscriptions sold through Apple’s app store.

Recently, Epic Games filed a lawsuit accusing the company of anticompetitive practices. Additionally, both Microsoft and Facebook have spoken out about the company's policies. Currently, news publishers must pay Apple 30% of their revenue from first year subscriptions and 15% after that.

Here's the letter from Digital Content Next to Apple CEO Tim Cook:

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Dear Mr. Cook,

On behalf of Digital Content Next (DCN), I am reaching out to you to better understand the “conditions” you mentioned in your July 29th remarks before the House Judiciary Committee. We would like to know what conditions our members – high quality digital content companies – would need to meet in order to qualify for the arrangement Amazon is receiving for its Amazon Prime Video app in the Apple App Store.

DCN is the only trade organization dedicated to serving the unique and diverse needs of the most trusted and well-respected media brands that, together, have an unduplicated audience of 223,098 million unique visitors or 100 percent reach of the U.S. online population. These brands enjoy trusted, direct relationships with consumers and advertisers. Many of our members provide their customers access to content through subscriptions, a model that two-thirds of subscribers (64%) perceive has a high value.

In response to Rep. Hank Johnson’s question on whether the arrangement afforded Amazon is “available to any app developers,” you responded affirmatively that they are available to “anyone meeting the conditions. ” In evidence released by the Committee after the hearing, it appears the terms provided to Amazon include a significantly increased net revenue structure.

Nearly all of DCN’s members offer apps in the Apple App Store and, as noted above, many offer subscription-based access to a wide variety of content. The terms of Apple’s unique marketplace greatly impact the ability to continue to invest in high-quality, trusted news and entertainment particularly in competition with other larger firms. In keeping with your statement to the Committee, 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. I look forward to discussing this with you.

Sincerely,
Jason Kint
CEO
Digital Content Next
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