Apple stokes ebook fears

by Simon Aughton on February 2, 2011

Apple has denied changing its App Store rules for ebook apps, after Sony revealed that its e-reader app had been rejected.

Sony told the New York Times that Apple had rejected its app because it doesn’t make book purchases through Apple’s in-app purchasing system.

While it isn’t entirely clear, it seems Sony wanted to be able to sell ebooks within the app, but using its own sales channel.

But that violates App Store rules which mandate the use of Apple’s system. It is for that reason that other e-reader apps such as Amazon’s Kindle, point users to a web store to buy books which are subsequently synced with the reader.

Apple spokesperson, Trudy Muller denied any alteration to its entry rules — “We have not changed our developer terms or guidelines.” Apple , told The Loop.

However: “We are now requiring that if an app offers customers the ability to purchase books outside of the app, that the same option is also available to customers from within the app with in-app purchase.”

That would seem to suggest that it’s fine for the likes of Amazon to sell ebooks for iOS through its website, but it must also provide Apple-authorised in-app purchasing.

And therein lies a big problem for ebooksellers. Apple takes a 30% cut of all in-app purchases, precisely the same margin that publishers give to sellers. Apple’s cut would therefore leave them with zero profit on each sale.

Steve Haber, president of Sony’s digital reading division, bemoaned Apple’s hardline stance.

“It’s the opposite of what we wanted to bring to the market,” Mr. Haber said. “We always wanted to bring the content to as many devices as possible, not one device to one store.”

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