Amid ongoing pressure regarding its App Store policies, Apple has unveiled its App Store Small Business Program, with 15% commissions for small devs.
Since the outset of the App Store, Apple has charged a 30% commission to developers. In the beginning, many developers praised Apple’s arrangement, believing it to be a fair trade-off for handling the logistics of app distribution. As time has passed, however, more developers have begun souring on the fees.
Things have come a head with Epic’s court fight against Apple, as well as Spotify’s complaint that has prompted an EU investigation. As a result, Apple has announced its new App Store Small Business Program.
The new App Store Small Business Program will benefit the vast majority of developers who sell digital goods and services on the store, providing them with a reduced commission on paid apps and in-app purchases. Developers can qualify for the program and a reduced, 15 percent commission if they earned up to $1 million in proceeds during the previous calendar year.
The App Store Small Business Program, which will launch on January 1, 2021, comes at an important time as small and independent developers continue working to innovate and thrive during a period of unprecedented global economic challenge. Apps have taken on new importance as businesses adapt to a virtual world during the pandemic, and many small businesses have launched or dramatically grown their digital presence in order to continue to reach their customers and communities. 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.
The news is a welcome change for small developers, and will likely help Apple in the cases it’s currently fighting.