Apple in 2011 Considered Collecting a 40% Fee From Some Subscription Apps - MacRumorsOpen MenuShow RoundupsShow Forums menuVisit ForumsOpen Sidebar
Skip to Content

Apple in 2011 Considered Collecting a 40% Fee From Some Subscription Apps

Apple once considered taking a 40 percent cut from some subscription apps, according to documents shared today by the House Judiciary Committee (via Bloomberg).

appleappstorefeesemails
Back in March 2011, Apple's services boss Eddy Cue emailed three other executives and suggested Apple should "ask for 40% for the first year only," but that a "few deals" needed to be worked out for Apple to "see what is right."

One of the executives, Jai Chulani, wrote back that Apple could be "leaving money on the table" asking for 30 percent in the first year of subscriptions.

At the time, the emails referred to apps that offered digital content like Hulu on the Apple TV rather than apps running on iPhone and iPad, though Apple had launched App Store subscriptions in February 2011.

Apple ultimately decided to take a 30 percent cut from subscriptions purchased through the ‌App Store‌, and later reduced that rate for longer running subscriptions. Today, when customers sign up for a subscription within an app, Apple collects 30 percent for the first year, and 15 percent for the second year and all subsequent years.

Apple CEO Tim Cook during his testimony at today's antitrust subcommittee meeting emphasized that Apple has not changed its ‌App Store‌ fees since the ‌App Store‌ launched, and has in fact lowered them, referencing the 15 percent cut.

Ahead of the antitrust meeting, Apple also commissioned a study suggesting Apple's ‌App Store‌ fees are in line with the fees collected by other digital marketplaces and service providers.

Popular Stories

App Store vs EU Feature 2

Apple Loses EU Fight Over App Store Gatekeeper Label

Wednesday July 8, 2026 1:54 am PDT by
Apple's challenge against the EU's designation of its App Stores and iOS platform as "gatekeepers" was dismissed by Europe's top court on Wednesday, reports Reuters. "The General Court dismisses Apple's actions regarding its designation as a gatekeeper in relation to the App Store and iOS," the Luxembourg-based tribunal said.Apple took its case to Luxembourg's General Court in 2024 after the...
european union eu

Google Fined $1 Billion by EU for Search Bias and App Store Restrictions

Thursday July 23, 2026 5:39 am PDT by
Google was today fined €890 million ($1 billion) by the European Union for breaching antitrust rules with regard to its search and Google Play store services. The European Commission found that Google had broken the Digital Markets Act (DMA) by using its dominant position in the search market to favour its own services, like shopping and hotel deals, over those of rivals. The Commission ...
apple bitcoin app scam

Apple Responds to Lawsuit Over Fake Bitcoin Wallet Scam in App Store

Monday July 27, 2026 6:00 am PDT by
Apple is facing a new lawsuit from three customers who allegedly lost a combined $1.8 million after falling victim to a fake Bitcoin wallet app in the App Store, according to a complaint filed in California federal court on Friday. The complaint alleges that Apple violated California's Consumers Legal Remedies Act and other laws by failing to adequately review and monitor apps distributed...

Top Rated Comments

boss.king Avatar
79 months ago

30% is perfectly fair. 40% is not.
Can I ask you to explain how you came to that judgement? What makes 30 so much more acceptable than 40? Why not 25? Why not 60? Are you just drawing an arbitrary line in the sand because it's what we're used to, or is there some calculation you've run here?
Score: 58 Votes (Like | Disagree)
japanime Avatar
79 months ago
Amazon takes up to 65 percent (yes, you read that right) from independent publishers of books sold through the Kindle store.

I'm not suggesting that by "only" taking 30 percent (or 40 percent) is by any means fair. But Amazon is getting away with highway robbery.
Score: 21 Votes (Like | Disagree)
boss.king Avatar
79 months ago

because it's the industry standard that Sony, Nintendo, and Microsoft has adopted with their stores.
But it's the industry standard in part because that's where Apple set it. If they had originally been debating between 40% or 50%, would you be arguing that 40% is perfectly fair but not 50?
Score: 21 Votes (Like | Disagree)
Apple_Robert Avatar
79 months ago
Much ado about nothing, seeing how that did not come to fruition. Not sure why it is story worthy 9 years after the suggestion.
Score: 19 Votes (Like | Disagree)
LN3000 Avatar
79 months ago
I don't see how this is really much of a story. One person suggesting something doesn't mean it reflects company values. I could suggest Mickey Mouse becoming president, but that doesn't mean all of America wants Mickey Mouse to be president (although....)
Score: 13 Votes (Like | Disagree)
79 months ago

But it's the industry standard in part because that's where Apple set it. If they had originally been debating between 40% or 50%, would you be arguing that 40% is perfectly fair but not 50?
No. Playstation Store existed in 2006 and took 30%. Apple App Store launched in 2008.
Score: 9 Votes (Like | Disagree)

🔗 Related Apple News & Rumors

Stay updated with the latest Apple ecosystem news and verified rumors