Apple Slices Commissions For Smaller Developers

Apple announced a reduction to its longstanding App Store commission rate, one of the most substantial changes to how iOS developers earn money in the history of the iPhone maker’s digital app marketplace, as part of a new program for small businesses. 

The new App Store Small Business Program, as it’s called, will allow any developer who earns less than US$1 million in annual sales per year from all of their apps to qualify for a reduced App Store cut of 15%, half of Apple’s standard 30% fee, reported the Wall Street Journal.

The company stated that the “vast majority” of iOS app developers should be able to access the program, but Apple declined to say what percentage of its more than 28 million registered app makers would qualify. Apple also declined to specify how much of its App Store revenue would be affected by the reduced commission.

Apple’s 30% take has been at the heart of complaints this year from other tech companies and some users over how it manages the vast digital world of people who use iPhones, iPads and other Apple devices. Critics have charged that Apple’s share is too large, is unfairly levied against different companies, leaves customers footing the bill, and leads to workarounds by some developers to avoid the fees.

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.