Apple Faces More Initiatives for Lower App Store Commissions

After Epic Games started a push on Apple to lower App Store commissions, news publishers pushed Apple to provide more favourable terms. In the mean time, Microsoft gave support to Epic Games cranking up the pressure on the iPhone maker.

The Digital Context Next (DCN) body, which represents major US publishers The New York Times, The Washington Post and The Wall Street Journal, among others, published a letter addressed to Apple CEO Tim Cook on its website, taking aim at the company’s “non-negotiable terms“ for App Store purchases. Their complaint comes after Epic Games filed an injunction against Apple in an attempt to block the termination of its developer accounts, as pair’s relationship disintegrated after the game maker criticised Apple’s policies.

In the letter, DCN CEO Jason Kint said Apple charges 30 percent commission on purchases, which reduces earnings potential for app developers while also driving up prices for consumers. He noted despite the terms apparently being non-negotiable, Apple struck a deal with Amazon in 2017 making its Prime Video service available on Apple TV. In the letter, Kint pushed for similar terms for news publishers and called on Cook to clearly define the conditions that Amazon satisfied for its arrangement so that DCN’s member companies meeting those conditions can be offered the same agreemen“.

Other major companies including Spotify and Telegram have also hit out at app store policies, while Tim Cook was recently grilled by US politicians as part of a congressional hearing over the conduct of dominant tech players. Microsoft weighed into a legal spat between Epic Games and Apple, arguing the publisher’s Unreal Engine is a critical tool for the software giant and other game developers, and any block would harm the broader market.