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Thursday, November 19, 2020

Apple cuts App Store commission for smaller businesses

Apple has cut its commission for App Store sales and in-app purchases to 15% for businesses that earn less than $1 million (around £760,000) per year. The company says this will benefit “the vast majority of developers” who sell digital goods and services for iPhone and iPad users through its application store.

A commission rate of 30% will continue to apply to businesses and app developers making more than $1 million in a calendar year.

Known as the App Store Small Business Program, the new scheme will launch on 1st January 2021. Full details are expected to be released next month.

Tim Cook, Apple’s CEO, said “Small businesses are the backbone of our global economy and the beating heart of innovation and opportunity in communities around the world. We’re launching this program to help small business owners write the next chapter of creativity and prosperity on the App Store, and to build the kind of quality apps our customers love. The App Store has been an engine of economic growth like none other, creating millions of new jobs and a pathway to entrepreneurship accessible to anyone with a great idea.”

The news comes as Epic Games continues its legal battle with Apple, arguing that App Store restrictions adversely affect competition and are a misuse of Apple’s power in the marketplace. Epic, the company behind popular game Fortnite, is currently taking legal action in the USA and has just launched new action in Australia.
Author: The Fonecast
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