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Apple to aid small businesses by reducing its App Store commission

Apple to aid small businesses by reducing its App Store commission

Applehas launched a new initiative to help small developers to thrive on the App Store.

The App Store Small Business Program will see Apple's commission from its storefront be reduced to 15 per cent, for developers that earn up to $1 million a year.

Small businesses are welcome to apply to become part of the initiative, which will officially launch on January 1st, 2021. However, there are certain criteria that must be met in order to qualify for the programme.

Firstly, existing devs that have generated up to $1 million in 2020 can be accepted as can new small businesses on the App Store. However, if a participating developer exceeds the $1 million threshold, standard commission rates will be reinstated.

Moreover, suppose a small business falls below the $1 million revenue mark in the future calendar year. In that case, they are eligible to reapply to the App Store Small Business Program and thus be granted the 15 per cent commission the following year.

"The backbone"

"Small businesses are the backbone of our global economy and the beating heart of innovation and opportunity in communities around the world," said Apple CEO Tim Cook.

"We're launching this program to help small business owners write the next chapter of creativity and prosperity on the App Store, and to build the kind of quality apps our customers love.

"The App Store has been an engine of economic growth like none other, creating millions of new jobs and a pathway to entrepreneurship accessible to anyone with a great idea. Our new program carries that progress forward — helping developers fund their small businesses, take risks on new ideas, expand their teams, and continue to make apps that enrich people's lives."

Controversial

Apple's new programme will be much welcomed and will aid developers that are on a smaller scale. However, this year, the company has come under considerable fire for the commission rates on the App Store.

For one, the company is currently embroiled in a lawsuit with Epic Games after it removed Fortnite from its storefront, due to having its commission circumvented. Not only has the games giant sued Apple in the US, but it has taken its case to Australia.

Meanwhile, big companies have banded together to form the Coalition for App Fairness to combat App Store policies. Such firms include Epic, Deezer, Spotify, Match Group and News Media Europe.


Staff Writer

A freelance writer based in Berkshire. Besides PG and PCGI she has written as a guides writer, specialising in RPG's and horror.

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