2011 Apple first reducing the Commission rate to 20%

Back in 2011 Apple first reported on the possibility of reducing the Commission rate to 20% in response to competition.

Phil Schiller, the executive in charge of the App Store raise the possibility however plans were never carried through.

Steve Jobs actually received the email and this email has since been made public as part of the companies legal battle.

“Do we think our 70/30 split will last forever?” Schiller’s email read. “I think someday we will see enough challenge from another platform or web based solutions to want to adjust our model.”

Schiller carried on to suggest that were Apple to ever change its fee structure, that it should do so from a position of strength rather than weakness.

He actually went on to announce a concept of dropping the Commission rate altogether, if the App Store should generate over $1 billion in annual profit.

“I know that this is controversial, I just tee it up as another way to look at the size of the business, what we want to achieve, and how we stay competitive,”

The 30% fee charge by Apple is central to the legal battle underway with epic games, who have accused the App Store of being a monopoly.

The Fortnight game had its own in app purchases which Apple deemed to break the terms of agreement they hence kicked the game from the App Store.

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