Apple cuts app commission for small developers in half

Apple Small Business: Those 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 need to apply for this by December 18.

Since early December, businesses that generate under a million dollars a year on the App Store have been able to sign up for the Small Business Program

on the Apple Store. This means developers will only have to pay 15 percent commission "on paid apps and in-app purchases" instead of 30 percent. The program will start on January 1, 2021, and developers can still apply until December 18 to be assured of benefiting from the new scheme next year. Existing developers can also claim after that, but the new commission is dependent on the tax calendar and so may not apply until later. The program is ongoing, so those who earn under a million dollars next year will continue to pay only 15 percent.

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

After December 31, 2020, developers will no longer be able to transfer their apps to other accounts to prevent possible abuse of the scheme. This could be a way to get around the million-dollar mark and pay the lower commission. Also, developer accounts that maintain multiple apps will have to provide all the details about it.

The App Store says it has 1.8 billion apps in 175 countries worldwide that generated $519 billion in revenue and sales in 2019. Half a billion people visit the store every week.