December 4, 2020

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Apple halves the commission for most app developers

Apple halves the commission for most app developers

Tech giant Apple will cut commission in half for most developers who offer apps in the App Store. This is the biggest change in the sales structure since the launch of the apps marketplace for iPhones, for example, in 2008.

The Cupertino-based technology company is halving its commission on app store sales from 30 percent to 15 percent for developers who generate revenue of up to $ 1 million a year. The newcomers also enjoy the discounted price, the company reported on Wednesday. It affects the majority of developers, the company said.

Among other things, the company wants to support developers in times of the corona. Or accelerate innovation and support small businesses and independent developers.

The change will take effect on January 1st. Eligible Developers who stayed below the $ 1 million app sales threshold in the previous calendar year. Anyone who exceeds the limit during the year pays 30 percent commission for the rest of the year. And whoever falls below 1 million in one calendar year can enjoy the 15 percent again the following year.

Apple has long been under fire from competition watchers and some developers for the percentage that is billed. Epic Games, the company behind the hugely popular Fortnite game, has bumblebees. Earlier in the day, it was announced that Epic Games is expanding its legal battle with Apple from the US to Australia. A complaint about “abuse of a dominant position” was filed there.

Apple prohibits developers from using alternative payment methods. Epic Games launched the US lawsuit in mid-August after Apple removed Fortnite from the App Store. This happened after the game maker tried to bypass the payment system on Apple’s iOS operating system.