Apple normally charges 30 per cent fee for most in-app purchases but in the case of Amazon, it allegedly offered 15 per cent fee on subscriptions that signed up through the Prime Video app, according to an email exchange released by the US Congress panel during the testimony on Wednesday. Apple slammed Spotify for wanting "all the benefits of a free app without being free".
In the remarks, Cook says that the "vast majority of apps on the App Store" provide their developers with a 100% revenue share, and Apple's 15% to 30% cut beat the boxed software industry and is competitive with alternatives.
Cook was also asked specifically about parental control apps that it had removed from the App Store. However, he doesn't specify why Apple doesn't allow apps to redirect users to an external source to purchase subscriptions etc. "Because we care so deeply about privacy and security and quality, we do look at every at every app before it goes on but those rules apply evenly to everyone". Apple is facing probes in the European Union as well as the ongoing USA investigation. "The App Store evolves with the times, and every change we have made has been in the direction of providing a better experience for our users and a compelling business opportunity for developers".
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But until now, Apple has not been able to have an assembly partner produce the current generation iPhone model in India. An investigation has been launched into Apple over allegations of misleading commerce practices in a number of states.
Cook is expected to say that Apple does not have a dominant market share in any market where it does business, and that the iPhone is "far from the only choice available to consumers". "The smartphone market is fiercely competitive, and companies like Samsung, LG, Huawei and Google have built very successful smartphone businesses offering different approaches", he adds. Clearly, if Apple is a gatekeeper, what we have done is open the gate wider.
'The App Store creates jobs': More than 1.9 million American jobs in all 50 states are attributable to the App Store ecosystem - from Fortune 500 companies that got their start on the iPhone, to small independent developers and students bringing the next big idea to life.