We sent a letter to Apple VP Philip Schiller in September 2009 to confirm our business model. Apple told us they couldn’t guarantee anything – submit the application and they’d let us know after submission. We submitted our new iFlowReader app Apple in November of 2010 and they approved it a few days later. After approval, we made substantial additional investments in licensing fees, integration fees, and server fees so that we could open our ebook store on December 2, 2010. Two months later, Apple changed the rules and put us out of business. They now want 30% of the sale price of any books, which they know full well, is all of our profits and more. What sounds like a reasonable demand when packaged by Apple’s extraordinary public relations department is essentially an eviction notice to all ebook sellers on iOS. After over three years of developing products for iOS during which we had over six million downloads of our BeamItDown iFlowReader products, Apple is giving us the boot by making it financially impossible for us to survive. They want all of the eBook business on iOS and since they have the unilateral power to get it, we are out of business and the iFlow Reader is dead.
Apparently they could not separate the transactional portion from the read-only portion:
You may still be able to read them using iFlow Reader although we cannot guarantee that it will work beyond May 31, 2011.
This is not good news.