Apple begins charging reduced app store commission from some developers

Apple appears to have started rolling out its reduced App Store commission for some developers. Last month, the Cupertino company announced the App Store Small Business Program to reduce its App Store commission from the existing 30 percent to 15 percent. The program was planned to be available on January 1, 2021. However, some developers have reported on social media that the reduced commission rate is now available for their App Store Connect accounts. Notably, the initiative is not intended for all Apple developers and is limited to those who earn up to $ 1 million (roughly Rs. 7.4 crore) in annual sales per year of all their applications.

As discovered by Apple Insider, developers, including Jacob Gorban of Winnipeg-based software company Apparent Software, have started reporting a 15 percent drop in Apple’s App Store commission. Some other developers have also reported an identical change.

The App Store reduced commission rate does not appear to be limited to US and Canadian developers and is rolling out for independent app developers in markets like India as well.

“The change in the income rate to 15 percent seems to be active already”, tweeted Rajkot Aditya Rajveer developer of Marvis music app. “I see earnings of $ 5.09 for $ 5.99 in the United States.”

Apple’s move with the early launch of the reduced commission rate has been welcomed by many app developers. “I’d say it was a big surprise that Apple didn’t wait until January 1 to cut commissions, they wanted to give it to us as a Christmas present. The reduced commission helps a lot, ”Rajveer told Gadgets 360.

Importantly, the App Store Small Business Program is limited to existing developers who made up to $ 1 million in 2020 for all of their apps and to new developers on the App Store. The company stated in its November announcement that developers should sign up for the initiative to be eligible for the reduced cut.

Several app developers posted on Twitter that Apple began accepting signups for the show earlier this week. The company sent an email to inform the developers of their enrollment, although it did not highlight the early release.

Apple faced strong criticism from the developer and regulatory community for charging the 30 percent commission. Companies like Basecamp and Spotify hit the company hard for cutting its revenue through the commission that applies both to in-app purchases made through their apps and to all purchases made by their users through the App Store.

Rising outrage and regulatory pressure essentially pushed Apple to launch the App Store Small Business Program.

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