Apple slashes commission fees to developers on its App Store

Apple is halving the commission it takes from the sale of apps and virtual goods sold within them from many of the smaller developers using its stores.

From January, any existing app-maker who earned $1m (£830,000) or less from Apple’s marketplaces in 2020 will only have to give up a 15% cut in 2021.

That compares to the standard rate of 30%. New developers also qualify.

It follows widespread criticism by developers of the fees Apple charges, and coincides with anti-trust scrutiny.

Chief executive Tim Cook was questioned several times about the rates his firm charges when he appeared before US lawmakers at a competition hearing in July. It emerged there that Amazon had negotiated a special 15% rate for in-app charges within its Prime Video app.

And the preceding month the European Commission opened its own probe into the marketplace’s rules.

Apple, however, has characterised the move as being a natural evolution of its policies, which it had made after listening to feedback from its developer communities.

About 28 million developers use Apple’s store, and the firm says the vast majority of those who charge fees will benefit.

But it has not provided a figure for how many it forecasts will be affected.

One of those who will earn more told the BBC he welcomed the move, but said that might not be true of everyone.

“Earlier in the year, Apple faced a lot of bad PR because it was seen to be capitalising on the pandemic by charging its 30% cut on small businesses – like those offering fitness training or classes – that had gone virtual via an app,” said Benjamin Mayo, creator of the Daily Dictionary and Bingo Machine apps.

“So they and others of us in the indie community will see this as a good thing.

“But the bigger apps like Spotify and Epic will likely see this as unfair as they’re being excluded despite earning the App Store more money.”

Sole store

By design, the scheme will exclude the highest-earning software creators for Apple products.

At present, the only way for developers to offer native apps – rather than those that run via a web browser – for iPhones, iPads, Apple Watches and the Apple TV set-top box is via the firm’s App Store.

By contrast, they can sell their products directly to consumers or via alternative marketplaces on its Mac computers.

BBC