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Apple Halved App Store Fee to Get Amazon Prime Video on Devices

  • IPhone maker’s Eddy Cue reached 2016 deal with Amazon’s Bezos
  • In 2011, Apple executives weighed 40% fee for subscriptions
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Apple Inc. agreed in 2016 to halve its App Store fee for Amazon.com 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.