News publishers group asks Apple to lower its App Store fees for them

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A publisher's group representing the likes of the New York Times, The Economist, the Washington Post, NPR, Conde Nast, etc. is hoping to cut down its 30% "Apple tax" to 15%. The request comes a week after Epic's legal battle with Apple began over this cut Apple (and Google) get from in-app purchases. But the trade organization Digital Content Next got the idea from Amazon. Documents released as part of a Congressional antitrust hearing in the US with CEOs from Facebook, Amazon, Apple and Google-owner Alphabet revealed that Apple takes 15% from Amazon's App Store revenue for Prime Video instead of the standard 30%.

Digital Content Next's CEO Jason Kint wrote in an open letter to Apple CEO Tim Cook, asking about the conditions its members need to meet to qualify for the same arrangement. Because right now, nearly a third of every newspaper subscription sold through an iOS device goes to Apple. Cook said during the hearing that this deal was open to any developer that meets the conditions. 

DCN wrote in a blog post on Thursday, "Apple's 'non-negotiable terms' have been an issue for some time. The company charges 30% commission on any app store purchase. That fee reduces earnings potential for app developers while also driving up prices for consumers. Most merchants charge a flat fee. Apple takes 30% of the sale of, say, a $25 newspaper subscription. It also takes 30% for the sale of a $500 newspaper subscription. Thus, the more the publisher is able to charge for its service then the more Apple benefits, despite providing the same service."

DCN joins the likes of Spotify (who also pays the 15% tax) and the aforementioned Epic over this fee developers have to pay to be on Apple's platform. Apple hasn't replied to a request to comment yet. But it has defended its position in the past, saying these companies achieve the success they have by being on the platform.

Source: CNET