Apple will no longer charge 30 percent commission from App Store developers, here is why

Apple announced Wednesday that it will no longer charge a 30% fee to developers who sell their apps and services on the App Store. The company will reduce the App Store developer fee from half to 15% starting January 1, 2021. However, Apple has reduced the fee only for developers who generate up to $ 1 million in annual revenue from their apps. The offer is also valid for developers who are unfamiliar with the app store.

Apple has made revenue changes to help small businesses thrive. The change will be effective from January 1, 2021.

“We believe small businesses are the backbone of our global economy and the beating heart of innovation and opportunity in communities around the world. Launched on January 1, 2021, the industry-leading new App Store Small Business Program is designed to accelerate innovation and help propel your small business forward. The program has a reduced commission rate of 15% on paid apps and in-app purchases, so you can invest more resources in your business and continue to build the kind of quality app your customers love, “Apple said. in a statement.

Apple said the vast majority of developers on the App Store who sell digital goods and services will qualify for the Small Business program. Developers who made “$ 1 million in proceeds in 2020 for all their apps, as well as developers new to the App Store, can qualify for the program and reduced commission.”

Developers whose assets have fallen below the $ 1 million threshold in a future calendar year can also re-qualify for the 15% commission program.

It’s no secret that Apple has been in the eye of the storm for its payments system. The Cupertino giant charges a 30% commission to all app developers. Apple got into a fight with Epic Games and removed Fortnite from the App Store after introducing their own payment plan. Apple has also received criticism from Spotify for its payment system.

Speaking about the reduction in the App Store commission rate, Apple CEO Tim Cook said: “The App Store has been an engine of economic growth like no other, creating millions of new jobs and a path to growth. Entrepreneurship accessible to anyone with a great idea. Our new program continues that advancement, helping developers finance their small businesses, take risks on new ideas, expand their teams and continue to build life-enriching apps of people “.

New developers looking to join Apple’s small business program should await further updates that will be shared in December.

Apple announced Wednesday that it will no longer charge a 30% fee to developers who sell their apps and services on the App Store.

News Underline:

  • Apple has announced that it will no longer charge a 30% fee to developers who sell their apps and services on the App Store.
  • starting January 1, 2021, the company will reduce the App Store developer fee from half to 15%.
  • Apple has reduced the fee only for developers who generate up to $ 1 million in annual revenue from their apps.