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BW Businessworld

Apple To Reduce App Store Fees To 15 Percent

The App Store Small Business Program will go live from January 1, 2021.

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Apple has announced a new developer program, under which the company has reduced the App Store commission by 15 percent, which is almost half of the standard 30 percent of paid app and app purchases. This new initiative will be known as App Store Small Business Program, which will be applicable to those developers, who earn up to $1 Million from all their apps annually. 

The company said its developer program would benefit most developers. However, no announcement has been made about how many developers will come under the ambit of the new scheme. The App Store Small Business Program will go live from January 1, 2021. Apple will make it available to existing developers, who have earned up to 1 million dollars from all their apps in the year 2020. It will also apply to new developers of the App Store. On the other hand, if any developers have earned more than the limit of $1 million, then the standard rate will be applicable for the whole year. 

Moreover, if a developer's business falls below $ 1 million in the future, Apple said that developers will be able to apply a 15 percent commission rate after one year. Details of this new program will be made available in December. Noteworthy, Apple will not apply the new rate automatically for the eligible developers. It means developers need to apply for new commission rates. 

To recall, Apple has been facing the displeasure of the developer community as well as regulators for its 30 percent commission. Companies including Basecamp, Spotify, and Epic Games have also reprimanded the iPhone manufacturer for taking a cut from all purchases users make through the App Store or making in-app purchases through the app. 

According to the reports, the app store has grossed Rs 2,43,300 crore in the first half of the year 2020. This is 27 percent higher than the Rs 1,95,100 crore in 2019.  

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