Wednesday, August 12, 2020

Apple gave Amazon a special discount for App Store tax, documents reveal

During the proceedings of the tech anti-trust judicial hearing on Wednesday, Apple CEO Tim Cook confirmed that they treat each developer evenly, but freshly revealed documents tell a different story.

The documents reveal an email exchanged between Apple’s Senior Vice President Eddy Cue and Amazon CEO Jeff Bezos in November 2016. The contents of the email reveal how Apple charged only 15% subscription fee compared to the standard 30% (for the first year) that it charges every other developer.

The email was posted on Twitter by Bloomberg reporter Mark Gurman.

In the antitrust hearing, Cook stood his ground and affirmed that Apple doesn’t give special treatment to any developer. He laid special emphasis on the point that Apple’s subscription fees lowers to 15% after the first year. It was also revealed that Apple used to commission researchers to prove that the company’s App Store rates were at par with others found in the digital market.

Amazon Prime Video among other video streaming apps on an iPhone.| Image: Getty Images.

In a meeting in 2016, Bezos said he was waiting for “acceptable business terms” before launching the Prime Video app on Apple’s platforms. Pressed for whether the terms may have included a reduction in the 30 percent App Store cut, Bezos told that “private business discussions should stay private.”

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Source: The Verge

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