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Apple drops App Store commission to 15 percent for small developers

Developers who earn less than a million dollars a year with their apps in Apple’s App Store will only have to pay 15 percent from next year. Now that is still 30 percent. The high rate will remain for developers who earn more.

Apple will implement the App Store Small Business Program on January 1, 2021. Developers must sign up for that program to be eligible for the reduced commission. That could be if developers have made less than a million dollars from their apps this year.

New developers are also eligible for the program and the low commission. If their turnover does exceed $ 1 million within a year, the high rate will apply for the rest of that year. Developers who now earn more than a million dollars but see their revenues decline and fall below the amount in a later year can apply again for the lower commission.

Apple says it will cut its small developer commission to support independent developers “during a period of unprecedented global economic challenges.” Apple will announce full details about the program in December.

The new program does not change the remittance that large companies pay to Apple. They also complain about the percentage of 30 percent. Fortnite maker Epic Games is involved in a lawsuit with Apple about this. Spotify also criticizes the 30 percent committee and various companies, including Microsoft , have joined the Coalition for App Fairness. That organization is lobbying to regulate Apple’s monopoly on the App Store.

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