Apple CEO Tim Cook had to appear yesterday as part of an investigation into anti-competitive practices by major technology companies. Internal documents were disclosed that revealed Apple's original plans.
During yesterday's hearing, some internal information came to light that caused quite a stir. An email was published that was sent in March 2011 by Apple's Senior Vice President of Internet Software and Services Eddy Cue. In it, Cue argued that Apple should increase subscription fees to 40 percent. The email reads:
“84 percent of the apps available in the App Store do not pay any fees”
For recurring subscriptions, we should charge 40 % in the first year - but we need to do some agreements to see what is right. I think we could leave money on the table if we only asked for about 30 % in the first year of the subscription.
Since the launch of the App Store, Apple has taken over around 30 percent of all transactions within its own payment system. This includes apps sold, in-app purchases and subscriptions. After some developers accused Apple of abusive and anti-competitive practices, the Company the commission to 15 percent. But for that to happen, the subscription must have been active for a year. However, these emails show that the company has already considered higher rates. During the hearing, Cook also explained that around 84 percent of the apps available in the App Store do not pay any fees to Apple. He also argued that the company offers developers a great platform with the App Store. (Photo by bigtunaonline / Bigstockphoto)
