Apple[1] has announced a commission-cutting app developer program for small businesses.
Apple announced the new scheme[2] on Wednesday. The Cupertino, Calif.-based company generally charges up to 30% for in-app purchases made through apps hosted on the iOS App Store, and this 'tax' applies to both digital goods and services.
Perhaps launched in mind of brewing legal battles surrounding the existing commission rate, Apple's new offering, the "App Store Small Business Program," will slice commission in half from 30% to 15%.
"Existing developers who made up to $1 million in 2020 for all of their apps, as well as developers new to the App Store, can qualify for the program and the reduced commission," Apple says. "If a participating developer surpasses the $1 million threshold, the standard commission rate will apply for the remainder of the year."
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Due to launch on January 1, 2021, the program applies to both existing and new developers. Apple says that the "vast majority" of app creators will benefit -- and the program will both boost innovation and encourage the development of the "next generation" of apps in the iOS ecosystem.
"Apps have taken on new importance as businesses adapt to a virtual world during the pandemic, and many small businesses have launched or dramatically grown their digital presence in order to continue to reach their customers and communities," Apple says. "The program's reduced commission means small developers and aspiring entrepreneurs will have more resources to invest in and grow their businesses."
The tech giant says the standard 30% commission rate will remain in place when a developer is earning more than $1 million a year. However, if profit drops to