Apple introduces App Store Small Business Program, with this program Apple will reduce the App Store commission to 15% in certain circumstances.
The commission Apple takes on purchases within applications and subscriptions has been in question for a long time. Important companies like Spotify or Epic Games have complained, even the latter took its threat to the max and its popular game Fortnite was expelled from the App Store. Now we are waiting for the trial.
- Apple to bring new privacy rules to the App Store on December 8th
- Apple to patent new Touch ID: an under-screen fingerprint reader
- Apple launched RC updates for watchOS 7.1
The commission Apple applies in its store is 30%. The same that Google has in the app store of Android, Sony in the PlayStation store, Nintendo or Microsoft.
Apple defends this rate because it is what makes the App Store can continue to operate, and also represents a good figure of income. But now the company has announced that it will cut this commission in half. However, in order for Apple to take only 15%, you must meet some important conditions.
What is App Store Small Business Program?
Apple wants small developers and companies that publish on the App Store to be able to grow and generate more revenue, so it will reduce the commission to 15%.
“Since the launch of the App Store, small businesses have been its driving spirit. Now more than ever, these businesses are core to the communities they serve, helping people stay healthy, connected, and learning. Today Apple unveiled the App Store Small Business Program, a new commission structure to support small and individual developers and spur innovation for the next chapter of apps.”
All those developers with a turnover of less than $1 million per year are eligible for this new program. Please note that this is one million dollars after Apple takes its commission. Many developers have shown their optimism about this measure, announcing that this will help them improve their applications.
A good initiative from Apple that can make the business of these small developers grow quickly by increasing their profits. So far, Apple has been firm on the 30% commission on App Store purchases, we’ll see if it’s a step towards another change.
