Apple reduces the App Store tax to 15% by 2021 … but not for everyone



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Apple has made a significant change to the way it charges its commission for paid apps and in-app purchases made through the App Store. The App Store Small Business program will launch in early 2021, and those who qualify will only have to pay a 15 percent commission, down from the 30 percent “Apple tax.”

In an official statement, the Cupertino-based company said the change would benefit the “vast majority” of developers who have applications on the App Store. Of course, there are requirements to join the program, in particular a USD 1 million (~ RM4.1 million) income limit for the previous calendar year.

Apple also outlined the basic eligibility criteria for the App Store business program:

  • Existing developers who made up to $ 1 million in 2020 for all of their apps, as well as new developers on the App Store, can qualify for the program and the reduced commission.
  • If a participating developer exceeds the $ 1 million threshold, the standard commission rate will apply for the remainder of the year.
  • If a developer’s business falls below the $ 1 million threshold in a future calendar year, they can re-qualify for the 15 percent commission the following year.

Spotify, Epic Games and the big hitters excluded

Despite the “vast majority” mentioned by Apple (and the fact that most developers in the App Store do not pay any commission), there are still heavy hitters who will have to pay 30 percent of Apple’s tax.

Epic Games, which has had a (very) public and lengthy discussion with Apple on antitrust issues, said The edge:

“This would be something to celebrate if it weren’t a calculated move by Apple to divide app creators and preserve its monopoly on stores and payments, again breaking the promise to treat all developers equally.

“By giving special 15 percent terms to certain robber barons like Amazon, and now to small independent businesses as well, Apple hopes to remove enough criticism for them to get away with blocking competition and a 30 percent tax. on most in-app purchases. “

– Epic CEO Tom Sweeney (via The edge)

Spotify, which also had similar issues with App Store policies, warned regulators to ignore the “showcase” when referring to the changes:

“Apple’s anti-competitive behavior threatens all developers on iOS, and this latest move further demonstrates that its App Store policies are arbitrary and capricious. While we consider its fees to be excessive and discriminatory, Apple’s linking of its own payment system to the App Store and the communication restrictions it uses to punish developers who choose not to use it, puts apps like Spotify in a significant disadvantage compared to its competitors. Service. Ensuring that the market remains competitive is a critical task. We hope that regulators will ignore Apple’s ‘showcase’ and act urgently to protect consumer choices, ensure fair competition and create a level playing field for all. “

(via The edge)

Many see Apple’s latest move as a response to recent antitrust investigations, but Apple says the App Store’s Small Business Program is designed to “help small businesses and independent developers,” particularly amid global economic woes. related to the pandemic.

Meanwhile, there are those who are happy with the cut reduced to 15 percent. According to the BBC, app creator Benjamin Mayo said that he, along with other independent developers, sees this as a good thing. However, he noted that heavy hitters would likely view his exclusion as unfair.

So what do you think? If you are a developer and are affected by the new changes, please share your thoughts on the matter in the comments below.

[ SOURCE , VIA , 2 ]

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