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Saturday, April 17, 2021

Facing Anti-Trust Pressure Apple will Lower App Store Fees

Tech giant Apple announced on Wednesday morning that it will start a program to lower its App Store commissions for software developers who make $1 million or less in proceeds each year from the store.

Tech giant Apple announced on Wednesday morning that it will start a program to lower its App Store commissions for software developers who make $1 million or less in proceeds each year from the store.

In a statement, Apple said that developers will automatically get a lower 15 percent rate if they generate $1 million or less in proceeds – defined as the portion of App Store purchases that the developer keeps – in a calendar year.

Apple’s App Store fees and rules have come under fire from both large software companies such as Microsoft, Spotify and Match as well as numerous startups and smaller companies that allege the fees deprive consumers of choices and push up the price of apps.

Apple has responded by pointing out that its rules apply evenly to developers and that the App Store provides an easy way to reach its base of users without having to set up payment systems in the 175 nations where it operates. The company said the new program will start on January 1st, 2021.

“Small businesses are the backbone of our global economy and the beating heart of innovation and opportunity in communities around the world,” Apple Chief Executive Tim Cook said in the statement.

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