Apple halves its App Store fee for the smaller companies

Apple, facing growing antitrust scrutiny over what it charges other companies for access to its App Store, said on Wednesday that it would cut in half the fee it took from the smallest app developers.

Developers that brought in $1 million or less from their apps in the previous year will pay a 15 percent commission on those app sales starting next year, down from 30 percent, the company said.

Good news, but it raises a whole bunch of questions – for instance, are developers going to remove their application from the store as they approach the 1 million dollar mark, since otherwise they’d have to make 1.25 million dollar the next year as to not lose out? Apple developer Twitter is confused as all heck about this.

Then there’s this:

The change will affect roughly 98 percent of the companies that pay Apple a commission, according to estimates from Sensor Tower, an app analytics firm. But those developers accounted for less than 5 percent of App Store revenues last year, Sensor Tower said. Apple said the new rate would affect the “vast majority” of its developers, but declined to offer specific numbers.

In other words, this is a minor change for Apple, and will most likely do little to stave off antitrust concerns.

6 Comments

  1. 2020-11-19 1:41 am
    • 2020-11-20 12:34 pm
      • 2020-11-20 2:06 pm
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    • 2020-11-20 2:29 pm

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