Emails shared by the House Judiciary Committee on Wednesday (June 29) during the tech giant anti-trust hearing showed that Apple wanted a 40% cut from some third -party subscriptions accessible through its platforms.
Apple services chief Eddy Cue said in an email dated March,2011 that they "should ask for 40% of the first year only but we need to work a few deals to see what is right."
Jai Chulani, another executive, also said that that the iPhone maker "may be leaving money on the table if we just asked for about 30% of the first year" of subscriptions.
Both executives were referring to Apple's video streaming service Hulu and digital content apps like those being offered by sports leagues. It also applies to the Apple TV set-top box but not yet certain whether it is also applicable to apps running on the iPad and iPhone devices.
The tech giant enjoyed a 30% cut from app subscriptions when it launched the feature a few years back. It reduced the fee to 15% after the first year.
Since last year, Apple's rules and fees on its App store have been subjected to regulators' criticisms. Developers also had their fair share of complaints.
In the Anti-trust hearing, Apple CEO Tim Cook reiterated that their fees are competitive and that they've got several competition trying to lure mobile consumers and developers.
This article is owned by Tech Times
Written by Krisana E.
