Media group asks Apple to reduced app store fees

‘Apple’s terms impact the ability to continue to invest in high-quality, trusted news and entertainment’

THREE of America’s biggest newspapers have called on Apple to offer better terms in its App Store as the battle escalates over its control over the software that runs on iphones.

The Digital Context Next (DCN) trade body, which represents papers including The New York Times, Washington Post and the Wall Street Journal, wrote to Apple chief executive Tim Cook on Thursday.

The group is seeking to reduce Apple’s cut of online newspaper subscriptions, which can be as high as 30pc of the price for first-time subscriptions made through iphone and ipad apps.

“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,” the letter said.

Publishers want to establish a similar arrangement to Apple’s relationship with Amazon, the details of which were revealed in email correspondence between Apple executive Eddy Cue and Amazon chief executive Jeff Bezos released by Congress in July. The emails showed that Apple took a reduced cut of subscriptions to Amazon’s Prime Video streaming service.

“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,” wrote DCN chief executive Jason Kint.

As part of a competition inquiry into Apple, Justice Department lawyers are scrutinising the rules that require many app makers to use its payment system. “We treat every developer the same,” Mr Cook said during the July congressional hearing that revealed the special deal with Amazon.

Frustration from American publishers over the App Store terms follows similar lobbying by Epic Games, which has launched legal action against Apple over its cut of in-game purchases.

Epic Games began the action against both Apple and Google after they removed its Fortnite app from online stores. The company had attempted to offer players reduced prices for purchases made outside of the app stores, a breach of Apple and Google’s rules.

An Apple spokesman did not respond to a request for comment.