Apple has started alerting developers by email that they qualify for the company’s new App Store Small Business Program.
Announced by Apple recently, the program slashes the commission rate paid by developers who earn under $ 1 million per year—through app fees and in-app purchases—from 30% to 15%. This kicks into action January 1, 2021.
An estimated 98% of developers are eligible for the new App Store Small Business Program, Apple Insider reports.
Read the Small Print
Apple’s email provides more details of the program, along with some small print regarding the rules by which developers must abide. This includes stopping developers who earn over $ 1 million per year from splitting into multiple companies in order to qualify for the offer.
Very happy to hear that we got accepted to Apple Small Business Program. It is an encouraging move from Apple. They decreased the commission rate from 30% to 15%. pic.twitter.com/6aqOWQICoN
— Ahmet Serdar Karadeniz (@aserkaradeniz) December 23, 2020
As Apple notes, “If you initiate an app transfer after December 31, 2020, or accept a transfer of an app that was initiated after December 31, 2020, you will no longer be eligible to participate in the program.”
App Store Under Scrutiny
Apple’s decision to reduce App Store fees comes at a time when the company is facing mounting outcry about its control of the App Store. This was highlighted as part of the United States antitrust hearings earlier this year.
Apple has also had high-profile clashes involving the App Store terms and conditions, such as its standoff with Fortnite developer Epic Games. This case is set to land in court in 2021.
It’s too early to be seen whether slashing App Store fees for the majority of developers will reduce any of the scrutiny aimed in Apple’s direction. However, for the developers who will get to keep more of their earnings as a result, this is like a holiday gift come early.
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