Apple halves App Store commission for small developers

Tyrone Stewart

Apple is going to cut the commission it takes from smaller developers for sale of apps and virtual items within them on its App Store.

From January, app developers who earn $1m or less from the App Store will only have to give Apple 15 per cent of the money they earn. Currently, 30 per cent of the revenue made by apps on the App Store goes back to Apple. The changes are part of Apple’s ‘App Store Small Business Program’.

“Small businesses are the backbone of our global economy and the beating heart of innovation and opportunity in communities around the world. We’re launching this program to help small business owners write the next chapter of creativity and prosperity on the App Store, and to build the kind of quality apps our customers love,” said Tim Cook, Apple’s CEO. “The App Store has been an engine of economic growth like none other, creating millions of new jobs and a pathway to entrepreneurship accessible to anyone with a great idea. Our new program carries that progress forward — helping developers fund their small businesses, take risks on new ideas, expand their teams, and continue to make apps that enrich people’s lives.”

The launch of the program comes on the same day as Fortnite maker Epic Games filing a lawsuit against Apple in Australia, alleging that the tech giant misuses its power by claiming a piece of all the revenue earned by apps. Epic filed a similar lawsuit against Apple in the US earlier this year.

In June, the European Commission opened up formal investigations into Apple’s App Store rules.