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Apple Executive Voiced Concerns Over App Store External Payment Fees

2 months 2 weeks ago
Apple Fellow Phil Schiller testified in court Monday that he initially objected to the company's plan to charge a 27% commission on purchases made outside the App Store, court documents showed. Schiller, who oversees the App Store, warned the fee would create an "antagonistic relationship" with developers and transform Apple into "some kind of a collection agency" that might need to audit developers for nonpayment. "I had great concerns about the collections of funds from developers," Schiller said, worrying about "how all of those things change the relationship between Apple and developers in a way I thought would be detrimental." Despite these objections, a pricing committee including CEO Tim Cook ultimately approved the commission structure. The 27% fee resulted from the 2021 Epic Games ruling that required Apple to allow developers to link to external payment options, slightly lower than the standard 30% in-app purchase commission. Internal documents revealed Apple analyzed how a "less seamless experience" of web-based payments would affect transaction completion rates.

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Chegg To Initiate Business Review Amid AI-Shift in Education Tech

2 months 2 weeks ago
Online-education company Chegg said it is conducting a business review and exploring alternatives such as selling the company or taking it private as it continues to lose subscribers to artificial-intelligence-enabled rivals. From a report: Chegg and other virtual-learning companies have ceded ground to generative-AI companies such as ChatGPT, which provides free alternatives to the homework help that Chegg charges $19.95 for to its subscribers. Although Chegg built its own AI products, the company has faced scores of canceled subscriptions. The business review comes as the company swung to a loss in the fourth quarter, with revenue falling 24%, and guided for lower-than-expected revenue for the first quarter. In November, Chegg said it would cut its workforce by an additional 21%. Chegg's shares have fallen 99% since its peak in 2021.

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Chegg Sues Google For Hurting Traffic With AI

2 months 2 weeks ago
Chegg has filed suit in federal district court against Google, claiming that AI summaries of search results have hurt the online education company's traffic and revenue. From a report: The legal move come nearly two years after former CEO Dan Rosensweig said students engaging with OpenAI's ChatGPT assistant were cutting into Chegg's new customer growth. Chegg is worth less than $200 million, and in after-hours trading Monday, the stock was trading just above $1 per share. Chegg has engaged Goldman Sachs and will look at strategic options, including getting acquired and going private, President and CEO Nathan Schultz told analysts on a Monday earnings call. Chegg's shares have fallen 99% since its peak in 2021.

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