A Swedish publisher has accused Apple of acting like a “whimsical feudal lord” in its monopolistic App Store practices.
In an open letter, publishing giant Schibsted says that, while Apple presents itself as being a more ethical company than other tech titans, it “constitutes a threat as big as Facebook and Google.”
Concerns about Apple
The particular concerns regard how Apple deals with publishers, and its impact on news. Schibsted is the publisher of Swedish newspapers Svenska Dagbladet and Aftonbladet. The letter was signed by publishers Anna Careborg and Lena K. Samuelsson.
It notes that:
“Previously, it has been possible for us and other newspapers to charge for our products via App Store and build a relationship with our readers and users. Over the past two years, Apple has rejected such solutions. Instead, they take 15-30 percent of the revenue from all digital content, such as plus subscriptions, which are sold through the apps. Just at a time when some of our magazines are starting to find new digital business models, they use their dominant position to introduce this Apple Tax.”
The letter also criticizes the way that Apple does not allow publishers to access certain data about readers.
“What is even more serious is that Apple does not allow us to have our own relationship with our readers via our apps. Data and customer relationship is confiscated by Apple. This means that we do not know who everyone has signed a subscription via the apps and that we therefore cannot follow-up with offers, information or questions about what they would like to read more about.”
As a result, the letter argues that regulatory action should be taken against Apple. These complaints are similar to the ones leveled against Apple by Spotify, which is also based in Sweden.
Not News+
It’s important to note that these complaints do not concern Apple’s new News+ service. Instead, they focus on the previous in-app subscription model that Apple employs in the App Store. News+ is not currently available in Sweden. However, it has also caused its share of criticisms, such as the New York Times arguing that it undermines newspapers.
Concerns about Apple’s App Store monopoly have ramped up in recent months. This comes at a time when Apple is pushing to embrace subscription-based Services as a larger part of its business.
Source: Venture Beat
