Apple starts charging reduced App store commission

By Rahul Vaimal, Associate Editor
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The American multinational technology company Apple has reportedly initiated its reduced App Store commission for some developers, which are part of its Small Business Program.

Last month Apple announced to reduce its App Store commission from the existing 30 percent to 15 percent and the program was planned to go live from January 1, 2021. The initiative was brought up aiming at those who earn up to $1 million in annual sales per year from all their apps.

However, some developers like Jacob Gorban of Winnipeg-based software firm Apparent Software have reported a 15 percent dip in Apple’s App Store commission. Some other developers have also reported an identical change.

“The change in the rate of proceeds to 15 percent seems to be active already. I’m seeing proceeds of $5.09 for $5.99 in the United States. Thank you, Apple,” a developer tweeted.

The reduced App Store commission rate doesn’t seem to be limited to developers in the US and Canada and is also rolling out for independent app developers in markets including India.

Apple’s launch of the reduced commission rate has been welcomed by many app developers. The App Store Small Business Program is limited to the existing developers who made up to $1 million in 2020 for all their apps and the developers new to the App Store. Several app developers posted on Twitter that Apple started accepting enrollees for the program earlier this week.

Apple faced strong criticism from the developer community and regulators for charging the 30 percent commission. Companies like Basecamp and Spotify criticized company for cutting their revenues through the commission that is applicable for both in-app purchases take place through their apps and all purchases their users make through the App Store.

The increase in outrage and regulatory pressure essentially pushed Apple to come out with the App Store Small Business Program.