Apple is Reducing App Store Commission to 15% for Many Developers: Here’s Who Will Benefit From it

In what can be a major move for developers ferrying apps in the Apple App Store ecosystem, the iOS maker has announced a new App Store Small Business Program. According to this new scheme, Apple is straightaway halving the app store commission rate that it charges its developers who earn by selling their apps and in-app services on Apple’s platforms. So far, all developers were charged a 30 percent commission. Now, as part of the new Small Business initiative, developers who earn less than $1 million from all their apps and their related in-app purchases, will only be charged 15 percent in revenue commission.

According to a report on the matter by The Verge, Apple has not disclosed the exact percentage of its over 28 million app developers on the App Store platform that will benefit from its new app store commission rates. In the landmark antitrust hearing that brought together all the four Big Tech CEOs earlier this year, Apple CEO Tim Cook had claimed that Apple does not charge a commission from a “majority” of developers who offer their services and earn from customers on their platform. Continuing on the same vein, Apple reportedly claimed that a “vast majority” of earning developers on Apple’s App Store ecosystem will benefit from it.

The programme will premiere for all developers starting January 1, 2021. According to available information, Apple will offer developers a way to apply for the benefit that can significantly increase the amount that developers can earn from the programme, and more details about the exact eligibility criteria and related details will be revealed in December. From what reports have stated so far, Apple will look at developer earnings from 2020 to decide which of them shall be eligible for the benefit in the coming year. If a developer crosses the $1 million revenue mark through 2021, they will automatically be taken out of the programme and switched to the 30 percent commission rate.

Apple and Google have been consistently criticised for charging an exorbitant commission and exploiting their market position. Going forward, it remains to be seen how efficiently Apple manages to implement schemes, in order to better respond to such allegations.

The post Apple is Reducing App Store Commission to 15% for Many Developers: Here’s Who Will Benefit From it appeared first on MySmartPrice.

from MySmartPrice https://ift.tt/35H6jBz