FTC and DOJ monitoring Apple's new subscription policy

Apple's cut isn't 30%.

The publisher gets 70% of the stated price. But Apple only gets what is left, which in many cases is zero or a small loss.

For example, I rarely buy iTunes vouchers at face value. I frequently see offers like buy 2x $20 vouchers for $30 in stores near me. At that price, even assuming that the stores are offering the vouchers at cost, Apple is only getting 75% of the face value. Since 70% of the face value is paid to the publisher, Apple is only left with 5% to handle the transaction costs, delivery and much of the product support costs.

The only thing "sinister" about the deal that I can see is the requirement that special offers in other channels must be matched within the iTunes store.

Monitor, sure, meddle, not yet. I do not think it warrants any government involvement yet.

Re: that final comment. There is no definitive proof that anyon would have sided against Apple regarding the Flash issue. As noted, Apple changed the rules on their own, rendering the whole thing moot

It's Apple's ecco-system. It can and should govern it as it sees fit.

Those who don't like it can go to a sucky "me too" clone or they can purchase publications from the provider's site or the old fashioned way.

Don't worry Apple, like almost all things (if this is found to be illegal) you'll pay a fine equal to less than 10% of the profit you made from it while doing the illegal practice. Aw America, where corporations come first and the people second, lets buy some congressman.

This is good; the FTC and DOJ should certainly be paying attention to things like this. However, nothing will come of it unless the law changes.

From a legal point of view this is like setting up a card table at your local mall to provide a service but not paying the mall rent.
Apple's rent is the 30% cut. The entry fee is just $99. How about XBox? Don't I have to buy "points" in microsoft's private piggy bank to buy anything? Or Sony where I have to "lease" expensive deb kits, and pay for approval, and provide my own bandwidth/servers or rent form Sony.

Apple's 30% is high, but that's their deal. In-app purchases are mostly a scam anyway to get people to download a "crippled" app. Very few have items that could't be part of the initial price for a few bucks more.

I've written some more detail on the reasons why this is investigable, and a suggestion how the situation might be made better for all involved:

http://quatermain.tumblr.com/post/3365005188/the-doj-and-the-ftc-and-the-eu-oh-my