Justice Department Bites Apple

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[Commentary] 'I don't think you understand. We can't treat newspapers or magazines any differently than we treat FarmVille." With those words, senior Apple executive Eddy Cue stuck to his take-it-or-leave-it business model of a 30% revenue share payable for transactions through the iTunes service. Despite my arguments to Cue in Apple's offices last year on behalf of news publishers seeking different terms, to him there was no difference between a newspaper and an online game. It was a sobering reminder that traditional media brands have no preferred place in the new digital world. It also should be the defense's Exhibit A in the Justice Department's antitrust case against Apple and book publishers: The 30% revenue-share model is Apple's standard practice, not, as alleged by the government, the product of a conspiracy. Whether it's news, games, apps or books, Apple's position is the same. The market determines the price, and Apple gets 30%.


Justice Department Bites Apple