Readability Tests Apple App Store In-App Fee Policy, Loses

Readability is a software development boutique whose reading functionality is part of the Apple Safari browser, but whose Apple App Store app (Readability iOS ) has been rejected, apparently because the app uses a non-Apple in-app purchase mechanism.

Readability says content providers get 70 percent of revenues when users buy content, but that Apple's 30-percent fee for app content sales then destroys the business model.

Which brings up an interesting question: as cloud-based software subscriptions start to proliferate, will Apple apply the same 30-percent fee? And, if so, will providers of all sorts of cloud-based apps avoid the App Store?

There are signs Apple already has thought about this, and does not plan to impose the same arrangements for cloud-based software apps. See http://www.macrumors.com/2011/02/21/steve-jobs-email-suggests-in-app-subscriptions-dont-apply-to-software-as-a-service/

An Open Letter to Apple