Apple’s iOS Subscription Policies Investigated
A new report claims that Apple's App store subscription policies are being examined by US regulating authorities. Read on.
Apple announced its iOS App Store subscription service on the 15th of February. Almost immediately, there has been some violent criticisms from developers regarding the terms of the new service.
Under the terms, Apple will take a 30 percent share of the revenue. In addition, a "most favored nation" clause states that subscription rates offered to iOS app users will have to match rates offered through external channels.
This basically means that developers who want to tap on Apple's dominance over the tablet market and iTunes' global reach will have to pay a high price and are forbidden from passing this extra cost over to the consumers.
The Justice Department recently sued a Michigan health-insurance company, alleging that the company used similar clauses to block competitors. Apple is currently under preliminary investigations by the US Justice Department and Federal Trade Commission, the EU (European Union) is also "closely monitoring the situation".
The day after Apple announced the details of its in-app subscriptions, Google revealed a competing service called "One Pass" that will take just 10 percent of revenue. If this year's Honeycomb lineup proves to be a hit, Apple might just live to regret offending it's developers when they decide to offer their wares on Android instead.