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(Last Updated On: July 30, 2020)

Emails spread by the House Judiciary Committee, Apple Inc. executives say that decades ago Apple executives had thought about taking a 40% cut from some third-party subscriptions accessed through its platform. 

Apple services chief Eddy Cue wrote an email to three executives saying the company “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, had written that Apple “may be leaving money on the table if we just asked for about 30% of the first year” of subscriptions.

The emails were talking about digital content apps, like that which is provided by sports leagues and Hulu. The conversation also linked precisely to the Apple TV set-top box and it is not known if this related to apps running on the iPhone and iPad as well.

The company has taken a 30% cut from app subscriptions since releasing the feature many years ago. It also lowered the fee to 15% recently, after the first year. This year, the rules and the fees of the App Store have come down under scrutiny by some regulators and developers.

At the time of the congressional testimony, Apple Chief Executive Officer Tim Cook said that the App Store fees are very competitive and rivals have been looking to win over developers and consumers.


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