Apple’s new 15% App Store commission rate for small developers is now live. Some developers are sharing the news of the 15% cut from in-app purchases for their apps on Twitter and they seem happy about it. Previously, across the App Store apps, all developers were entitled to pay a 30% cut to Apple for all purchases and in-app purchases via its digital marketplace. However, in the wake of COVID-19’s effect on global the tech industry and economy, Apple introduced a new program for small developers.
Cupertino tech giant launched the new ‘App Store Small Business Program’ on November 18, 2020, which cut its commission rate by half, 15%, for all developers who earned equal to or less than $1 million per year for paid apps, subscriptions, and in-app purchases. The amount is calculated after paying the App Store commission.
Since the launch of the App Store, small businesses have been its driving spirit. Now more than ever, these businesses are core to the communities they serve, helping people stay healthy, connected, and learning. Today Apple unveiled the App Store Small Business Program, a new commission structure to support small and individual developers and spur innovation for the next chapter of apps.
The savings mean small businesses and developers will have even more funds to invest in their businesses, expand their workforce, and develop new, innovative features for app users around the world.
New 15% App Store commission is now live
At the time of the announcement, Apple scheduled the rollout in January 2021. Apple had just started sending out emails to developers, confirming their eligibility in the program. Fortunately for some developers, the lower commission rate is already in effect. @Aditya Rajveer of Marvis App shared that Apple’s new commission rate is live for his app and informed that the new App Store rate is live in the United States and not in other regions like Europe.
It appears that it’s not live yet for all regions. It’s at least live for the US, but not for Europe.
— Aditya Rajveer (@AdityaRajveer) December 25, 2020
The new program was welcomed by many developers at the time of announcement and the feeling is the same after the launch. Apple’s App Store policy was strongly and publically criticized by big companies like Epic Games, Facebook, and Spotify this year over its 30% commission rate. The disgruntled developers used terms like Apple Tax and Apple monopoly and claimed that they are raising their voice for small developers. Spotify, Epic, Tile, and others formed a ‘Coalition for App Fairness’ which is supposed to challenge Apple’s 30% cut, but now the claims from these multi-billion-dollar businesses stand on flimsy grounds.
A few other developers also shared the rate change which came into effect for them earlier than expected:
Looks like the reduced Small Business App Store fee is now in effect. This is for our Mac app, ImageFramer. Time in UTC. 42.5/50 = 0.85. @mjtsai @OliverJHaslam @9to5mac @MacObserver pic.twitter.com/7LkaAQMhAR
— Jacob Gorban (@jacobgorban) December 24, 2020
Apple has started charging 15% commission instead of 30%, at least for @Nikola_App.
Seems totally plausible they'd want to start rolling it out a few days early unofficially.
— David Hodge Coding (@HodgeCoding) December 24, 2020
Google has not dropped its commission rate for Play Store so far, as a response to Apple’s move. Instead, Google is looking to strictly enforce its 30% commission rate soon.