Apple cuts app commission for small developers by half

Apple Small Business: Anyone who earned less than one million dollars with their app in the Apple Store last year will only pay 15 instead of 30 percent commission from January. Companies must apply for this by December 18.

Since the beginning of December, companies that generate less than one million dollars per year in the App Store have been able to register for the Small Business Program in the Apple Store. This means that developers only have to pay 15 percent commission "on paid apps and in-app purchases" instead of 30 percent. The program starts on 1 January 2021, and developers can still apply until 18 December to benefit from the new regulation next year. Existing developers can also apply after this date, but the new commission is dependent on the tax calendar and can therefore only apply with a delay. The program is ongoing, so anyone who earns less than one million dollars next year will continue to pay only 15 percent.

Apple argues that the lower commission will give "smaller developers and aspiring entrepreneurs in particular more resources to invest in their business".

After December 31, 2020, developers will no longer be able to transfer their apps to other accounts in order to prevent potential abuse of the scheme. In this way, the million mark could be circumvented and the lower commission paid. Developer accounts that manage multiple apps must also provide full details.

According to the App Store, it comprises 1.8 billion apps in 175 countries worldwide, which generated 519 billion dollars in revenue and sales in 2019. Half a billion people visit the store every week.