Apple To Charge Developers 50% Less If Their App Earns Less Than $1M


After much criticism from developers and companies alike, Apple App Store will now charge developers a lesser 15% fee, if their app earns under $1 million.

The App Store Small Business Programme will be applicable to the developers and apps based on this calendar year’s revenue. After all, you know it’s time to make some changes when Mark Zuckerberg says you deserve scrutiny.

With this new program, Apple has made it easier for independent developers to earn from the App Store. The new commission rates come after months of protests about Apple’s App Store charges.

While this a first from the Cupertino tech giant, it remains to be seen if Google will implement a similar structure to its Play Store commissions which are seeing similar protests.

Was App Store Decision Taken Under Pressure?

Apple App Store representative image

It’s definitely a welcome step that Apple will now charge a reduced 15% commission for apps that earn under $1 million. However, the hefty 30% charge was unfair to many in the first place. The matter caught so much attention that companies and developers came together to form a Coalition for App Fairness against Apple’s policies.

Not just that, the U.S. Congress Antitrust report accuses Apple of creating a monopoly through its ecosystem and strict rules on the App Store.

Having used both iOS and Android, I can say that I’ve found way more buggy, lagging, and half-baked apps on the Google Play Store, but I’ve also found more alternatives on Android. While iOS is guarded by App Store-only downloads, you start appreciating the quality and fluency of the apps with the UI.

In its press release about the reduced commission programme, Apple said that “the savings mean small businesses and developers will have even more funds to invest in their businesses, expand their workforce, and develop new, innovative features for app users around the world”.

Right after Apple’s announcement, the Coalition for App Fairness issued a statement to Fossbytes, asking for a “level-playing field from Apple, not a symbolic gesture.” Sarah Maxwell, the Coalition’s spokesperson, said that Apple owns the customer relationship and criticized the App Store’s lack of alternative payment methods.

Rounding up, it’ll definitely be easier for the developers to now publish their apps on the Apple App Store without worrying about a hefty commission. However, there’s much more that needs to be rectified on Apple’s end. Adding alternative payment gateways, having a freer environment for app developers, and changing its commission structure are just some of those changes.

Update: This story has been updated to include a statement from the Coalition for App Fairness.

Source: Apple Newsroom

Manik Berry

Manik Berry

With a Master’s degree in journalism, Manik writes about big tech and has a keen eye for political-tech news. In his free time, he’s browsing the Kindle store for new stuff read. Manik also adores his motorcycle and is looking for new routes on weekends. He likes tea and cat memes. You can reach him at [email protected]
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