Apple, the big brand, announced that it was reducing its App Store commission by 15%, taking 30% per cent for developers making less than $ 1 million per year, which would now take 15%.
The new declaration comes as a part of Apple‘s “App Store Small Business Program” Inaugural. Under this project, those developers whose apps accumulate earn less than $1 million per year can qualify.
If during a year, any developers cross the million-dollar limit, Apple will charge at the end of the year at a 30% rate. If revenue falls below $ 1 million for a developer, they can go for for the program coming year. The company claimed that the initiative would "benefit a lot of developers" without specifying a number.
30% commission of the iPhone manufacturer, companies and developers had been resisting for a long time. At this year, the company prohibited the favorite game Fortnite to negate Apple's in-app buying system. In response, owners of Fornite’s, Epic Games stated that Apple holds an illegal monopoly for app distribution on iOS.
Many big companies such as Spotify have complained about Apple's "App Store Charges". One of its arguments is that Apple's own services, such as Spotify rival Apple Music, get an impartial advantage over the company app platform. While the Cupertino-based tech giant says it charges everyone a 30% fee for in-app purchases, it has also cut some unusual deals, such as Amazon Prime Video, where is e-commerce bigwigs do not have to pay extra.
Apple claimed that in 2019, it facilitated $ 519 billion in commerce - 85% of it from third-party apps. However, convenience is the keyword here, so we don't truly knowing how much developers directly benefited from being on the App Store. These new rules will come into effect from January 1, 2021.
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