As part of an ongoing antitrust hearing in the US Congress, documents released show that Apple cut its app store commissions from Amazon in half to get Prime Video apps on iOS and Apple TV devices. According to these emails, Apple agreed to only receive 15% of the revenue from Amazon Prime Video subscriptions through the app, rather than the 30% revenue charged to all developers. At the hearing, CEO Tim Cook asserted that Apple will “apply the rules equally to all developers.”
Bloomberg reported that Amazon CEO Jeff Bezos and Apple’s senior vice president Eddie Cuy directly negotiated the deal. According to Cue’s email, Apple agreed to reduce revenue from the App Store through the Prime Video app by 15% and stated that it will not receive any income from customers who have registered or subscribed elsewhere before installing Prime through the App Store’s video app.
Now we know how Apple persuaded Amazon to finally put Prime Video on the App Store in 2017: Apple agreed to only get 15% of revenue from Prime Video subscriptions on iOS, while they got 30% from others. https://t.co/vscPLYKFe2 pic.twitter.com/75e46VGiai
-Mark Gurman (@markgurman) July 29, 2020
Amazon Prime Video finally landed on Apple TV
For all other developers, Apple will generally reduce application subscriptions through the platform by 30%, and then after the first year of listing, the revenue reduction will be reduced to 15%. The committee criticized Apple for controlling too much application developers, and the rules and fees did not apply to all developers. Apple has been accused of weakening competition, so it has been accused that not all applications are treated equally in the App Store.
However, Cook rejected all these allegations and replied: “That is not correct. We treat every developer equally.” However, the document issued by the committee also shows that Apple and Amazon have been between Apple in 2018. A conversation was officially conducted on the sale of its products on Amazon.com. According to reports, Amazon made a profit of $3.2 billion from this transaction, including $1.1 billion from iPhone sales.
Earlier this year, when Amazon Prime Video began allowing in-app rentals and purchases on iOS and Apple TV devices, Apple reportedly allowed Amazon to use its own storage payment method to process payments, which also enabled Altice One and Canal + Able to do it.
Apple said in a statement at the time: “On qualified premium video entertainment apps (such as Prime Video, Atlice One and Canal+), customers can choose to purchase or rent movies and TV using payment methods related to their existing video subscriptions. Show. “.
WWDC 2020 released a lot of exciting news from Apple, but which are the best iOS 14 features in India? We discussed this on the weekly technical podcast Orbital, you can subscribe via Apple Podcast, Google Podcast or RSS, download the episode, or click the play button below.