Apple halves App Store fees for small businesses

Apple’s 30% commission on all apps published on the App Store has been the subject of many years of debate. Many have considered it insanely high, especially as the commission also applies to in-app purchases.

But now there will be a change with a message. On January 1, 2021, Apple will reduce the commission from 30 to 15 percent for all developers who earn one million dollars or less on all their published apps. The initiative has been named the App Store Small Business Program and aims to accelerate the development of innovative apps and help developers expand their business.

In a press release comments Apple CEO Tim Cook comments on commission change:

– Small businesses form the backbone of the global economy and are the most important driving force for innovation and opportunities in societies around the world. We are launching this program to help small businesses develop their creativity and success in the App Store and to create quality apps that our customers like.

He continues:

– The App Store is behind outstanding economic growth and has at the same time created millions of new jobs and opened up avenues for entrepreneurship for everyone who has good ideas. Our new program takes these advances even further and helps developers fund their businesses, invest in new risky ideas, expand their teams and continue to create apps that enrich people’s lives.

Apple promises to return with more details about the App Store Small Business Program in December. Developers who withdraw more than one million dollars in one year will be forced to return to paying a 30 percent commission for the rest of the year, while those who stay below will have the chance to apply for the 15 percent margin again the following year.