Several prominent U.S. news organizations have become members of the Coalition for App Fairness (CAF), an organization advocating for greater oversight of app stores and equitable treatment for all developers. The latest trade association to align with CAF is Digital Content Next (DCN), which represents leading publications such as the AP, The New York Times, NPR, ESPN, Vox, The Washington Post, Meredith, Bloomberg, NBCU, The Financial Times, and numerous others. This addition makes DCN the 50th member of CAF and the first specifically representing the news and media sector within the United States.

DCN joins existing media members of CAF, including the European Publishers Council, News Media Europe, GESTE, and Schibsted, alongside original CAF members like Basecamp, Blix, Blockchain.com, Deezer, Epic Games, Match Group, Prepear, Protonmail, Skydemon, Spotify, and Tile, as well as an increasing number of independent developers.

DCN reports that its member organizations collectively reach an audience exceeding 223 million unique visitors, representing the entirety of the U.S. online population. These publishers utilize a subscription-based access model for their content, which they contend is negatively affected by Apple’s role as an intermediary. The organization asserts that Apple mandates the use of in-app payment systems for services like subscriptions. Consequently, some publishers are compelled to increase their prices to offset the commission, often referred to as the “Apple tax,” applied to these transactions.

“DCN is delighted to collaborate with the Coalition for App Fairness in its efforts to cultivate a just and competitive digital environment,” stated DCN CEO Jason Kint. “DCN’s distinguished publisher members maintain reliable, direct connections with their audiences, who do not anticipate intermediaries imposing arbitrary charges and regulations that restrict their access to the news and entertainment they value.”

DCN had previously voiced criticism regarding Apple’s business practices in the wake of this year’s congressional hearings, where it was revealed that Apple had made exceptions to its App Store guidelines for Amazon under a specific agreement.

The House Judiciary Committee’s investigation uncovered that Apple had reached an agreement with Amazon concerning its Prime Video App for iOS and Apple TV. An email from November 2016 – prior to the 2017 launch of the Prime Video app on Apple TV – showed Apple agreeing to accept a 15% revenue share from customers subscribing through Apple’s payment systems. Standard apps were subject to a 30% commission, reduced to 15% after the second year for subscription services. However, Amazon received the lower commission rate from the outset.

Apple also agreed to forgo its usual 15% fee for all current Prime Video subscribers and permitted customers to utilize payment methods outside of Apple’s system.

Essentially, Amazon secured terms that many publishers now seek for themselves, despite Apple’s claims of consistent App Store rule enforcement.

DCN also argued that, beyond concerns about preferential treatment for certain companies, Apple’s fees were discouraging publishers from pursuing direct revenue streams, such as subscriptions and events. They stated that Apple was instead incentivizing a return to digital advertising, where they wouldn’t incur a 30% commission and potentially face questionable data and privacy practices – issues Apple also claims to address.

Following the congressional hearing, Kint sent a letter to Apple CEO Tim Cook requesting public disclosure of the Amazon agreement’s terms, allowing any qualifying entity to apply for the same arrangement with Apple.

In November 2020, Apple responded to external pressure by lowering fees to 15% for all apps generating less than $1 million in annual revenue through a new program targeting small businesses. However, larger publishers were ineligible for this reduced rate due to their higher revenues.

“The addition of DCN to the Coalition for App Fairness marks a significant milestone in our campaign, and their understanding of the App Store challenges faced by leading news outlets will only amplify our voice,” said Sarah Maxwell, spokesperson for the Coalition for App Fairness. “We look forward to collaborating with them to advocate for App Store policies that are equitable, hold Apple accountable, and empower consumers with greater choice,” she added.