Apple halved Amazon’s App Store fee to get Amazon Prime Video on devices

Mark Gurman, Bloomberg:

Apple Inc. agreed in 2016 to halve its App Store fee for Inc. as part of a deal to put the e-commerce giant’s Prime Video app on Apple’s mobile devices and TV set-top box.

Eddy Cue, an Apple senior vice president, and Amazon Chief Executive Officer Jeff Bezos negotiated directly on the deal, according to emails released Wednesday as part of a congressional hearing on anticompetitive behavior. The companies agreed to a 15% revenue share for customers who signed up through the app and no revenue share for users who already subscribed via Amazon or elsewhere, the emails showed.


Apple generally receives a 30% cut for the first year of an app’s subscriptions made through the platform. That fee drops to 15% after the first year.


“That is not correct,” Cook said when asked if some developers are treated differently. “We treat every developer the same.”