Apple Decides to Cut its App Store Commissions in Half for Small Devs
30% to 15% on the App Store for small developers
Based on the recent developments, Apple has decided to lower the App Store commissions in half after facing a lawsuit in Australia. The lawsuit by Epic Games is still grinding in the court processes. However, we can already see Apple re-evaluating its commission policies.
On Wednesday, it was announced that Apple will reduce its commission from 30% to 15% on the App Store for developers with less than a million dollars (US) earnings in the last year.
Until these developers hit a million-dollar mark, they will only have to pay a 15% commission for the revenues that come through Apple’s App Store. Apple calls it the “small business program” and it will continue for as long as Apple does not decide to end it.
In this regard, Apple wrote, “The program’s reduced commission means small developers and aspiring entrepreneurs will have more resources to invest in and grow their businesses in the App Store ecosystem.”
This announcement came just one day after the creator of Fortnite, Epic Games launched a lawsuit. In this lawsuit, Apple was alleged with anti-competitive behavior. This is an area that the Australian Consumer and Competition Commission is also currently investigating.
While at the same time, a spokesperson at Apple mentioned that this small business program is simply designed to help sustain the developer ecosystem. According to Apple, this new initiative is not because of any potential regulations or litigations that might be coming Apple’s way.
In this regard, the CEO of Apple, Tim Cook says, “fund their small businesses, take risks on new ideas, expand their teams, and continue to make apps that enrich people’s lives”.
According to business analysts, Apple is making a significant amount of revenue from its services and applications. This revenue supports the business currently, as the growth in the sales of Apple’s devices has slowed down.
With the initiative, Apple also announced according to which the App Store has facilitated around 519 Billion USD globally in 2019 alone. Currently, there are 1.8 million apps on the App Store and so, many small developers may certainly benefit from the commission cut.
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