Apple Is Rolling Out Half the Amount of App Store Fee for Small Business Developers Before 2021

Apple, as a part of its Small Business Program introduced a new policy for applications present on the App Store.

Since its early days of App Store, Apple has always had a policy of taking 30 percent of the commission rate of the percent of sales and in app purchases, but this year on November 2020, the tech giant introduced a policy that applications currently present in the app store making less than one million dollars a year will now have to pay only half the designated percentage of commission that is 15 percent.

Applications making less than one million dollars a year will pay 15 percent commission rate for their sales and purchases instead of the regular 30 percent, but if their sales and purchases hit the sale rate of 1 million dollars they will immediately be put back on the 30 percent commission list for the rest of the year. However, if they fall back again, the cheaper tariff will again be implemented.

Applications with over 1 million dollars at an annual sale rate will have to pay the same 30 percent as commission, but some developers are not in favor and think that the 30 percent commission rate is unfair. Fortnight, which is the development of Epic games broke one of Apple’s rules and offered its player a direct way of buying in game currency at a discount, in response to which Apple banned it from the App Store. So Epic Games is currently leading the club against Apple claiming that Apple is exploiting the developers with the 30 percent commission fee, while Facebook is also pushing Apple for not reducing its commission fee for Facebook Pay. In response to this, Apple said that the commission fee is implemented to provide a safe and secure app development and sales platform for both developers and users alike. Also, it helps the 1.5 billion users of Apple devices from all around the world have an easy access to their applications.

Apple had started accepting the enrollments of the apps in early December and the program was supposed to take a kick start from January 2021, but looks like Apple has other plans now. According to Jacob Gorban the reduced commission fee that was supposed to be implemented from January 2021 is already in action.

Apple states that this policy from the small business program will be beneficial for both the majority of the small developers as well as individuals using their platform, and as small businesses are the backbone of their global economy this policy will help them “write the next chapter of creativity and prosperity on the App Store.” As for now, only the 15 percent policy rule is announced but the company will give out a more detailed set of rules in the near future.

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