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Apple demands cut of virtual exercise classes

by on29 July 2020

 

You might have saved your business, but you have to give us a third of your income 

After Airbnb and ClassPass began selling virtual classes because of the pandemic, Apple demanded a huge slice of the profits.

ClassPass built its business on helping people book exercise classes at local gyms. So when the pandemic forced gyms across the United States to close, the company shifted to virtual classes. Then ClassPass received a concerning message from Apple.

Because the classes it sold on its iPhone app were now virtual, Apple said it was entitled to 30 percent of the sales, up from no fee previously, according to a person close to ClassPass who spoke on the condition of anonymity for fear of incurring the wrath of Jobs’ Mob.

The iPhone maker said it was merely enforcing a decade-old rule. Airbnb experienced similar demands from Apple after it began an "online experiences" business that offered virtual cooking classes, meditation sessions and drag queen shows, augmenting the in-person experiences it started selling in 2016.

Both Airbnb and ClassPass have discussed Apple's demands with House lawmakers' offices that are investigating how Apple wields its control over its App Store as part of a yearlong antitrust inquiry into the biggest tech companies, according to three people who spoke on the condition of anonymity to discuss private conversations.

We have reported before how Jobs' Mob appears to be working a business model with its App Store pioneered by Ron and Reg Kray in London only with lawyers and legal letters rather than actual violence. But Apple's disputes with the smaller companies point to the control the world's largest tech companies have had over the shift to online life brought on by the pandemic. While much of the rest of the economy is struggling, Apple is getting richer.

Last modified on 29 July 2020
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