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Apple cuts App Store commission fee to 15% for some developers


Apple will cut its long-term commission fee of 30 percent for small developers and businesses in half.

The tech giant announced its new App Store Small Business program, which will cut the fee to 15 percent for those who made less than $ 1 million in revenue in the past calendar year.

The initiative is slated to start on January 1, 2021, but does not apply to hugely popular apps and video games. These developers continue to pay 30 percent.

Big names like Epic Games and Spotify, which are fighting the Apple tax, published statements after the announcement that the program was a "window dressing to preserve the monopoly".

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Apple's new App Store Small Business program, which will cut the fee to 15 percent for those with less than $ 1 million in revenue in the past calendar year.

Tim Sweeney, CEO of Epic, in a statement: "This would be a cause for celebration if it weren't for a calculated move by Apple to split app builders and maintain their monopoly on deals and payments, which in turn breaks the promise, everyone Treat developers equally. "

"By granting special 15 percent conditions for selected robber barons like Amazon and now also for small indies, Apple hopes to remove enough critics so that they can get away with their competitive block and 30 percent tax on most in-app purchases."

"But consumers will still be paying the inflated prices marked by the Apple tax."

The Epic-Apple feud began in August when the playmaker tried to bypass the 30 percent cut, which resulted in the two battling them in court.

Big names like Epic Games, maker of Fornite, and Spotify, which are fighting the Apple tax, released statements after the announcement that the program would be "window dressing" to maintain its monopoly

Big names like Epic Games, maker of Fornite, and Spotify, which are fighting the Apple tax, released statements after the announcement that the program would be "window dressing" to maintain its monopoly

A few months later, Spotify and Match Group joined Epic's battle with a by forming the nonprofit App Fairness Coalition.

Spotify released its version of Apple's new App Store Small Business program, saying it put them at a disadvantage.

"Apple's anti-competitive behavior threatens all developers on iOS, and this latest move further shows that their App Store policies are arbitrary and capricious," Spotify said in a statement.

"While we find their fees to be excessively high and discriminatory, Apple's tie-in of its own payment system to the App Store and the communication restrictions that penalize developers who choose not to use it have put apps like Spotify at a disadvantage. " competing service. Ensuring that the market stays competitive is an important task. & # 39;

"We hope regulators will ignore Apple's 'window dressing' and take urgent action to protect consumer choice, ensure fair competition and level the playing field for all."

The Coalition for App Fairness, formed in September, also released its view of Apple's new program, saying it "ignores fundamental flaws in the App Store," the statement said.

Spotify released its version of Apple's new App Store Small Business program, saying it put them at a disadvantage. "Apple's anti-competitive behavior threatens all developers on iOS, and this latest move further shows that their App Store policies are arbitrary and capricious," Spotify said in a statement

Spotify released its version of Apple's new App Store Small Business program, saying it put them at a disadvantage. "Apple's anti-competitive behavior threatens all developers on iOS, and this latest move further shows that their App Store policies are arbitrary and capricious," Spotify said in a statement

Apple plans to study the developers' sales for 2020 to see if they can take advantage of the program launched in January. The guidelines also state that developers who have not yet published their apps in the store can still qualify for the lower 15 percent fee

Apple plans to study the developers' sales for 2020 to see if they can take advantage of the program launched in January. The guidelines also state that developers who have not yet published their apps in the store can still qualify for the lower 15 percent fee

The group also shared other key points about Apple's business practices, such as that the tech giant owns the customer relationship and that all developers must use their payment processor.

& # 39; The App Fairness Coalition is committed to advancement and meaningful change. By the time Apple updates its guidelines to reflect App Store principles and create a fair ecosystem, developers around the world will be where they always have been, ”the group continued in their statement.

According to the New York Times, the program will affect about 98 percent of companies that publish their apps on Apple's App Store.

Last year, however, they made up less than five percent of App Store sales, Sensor Tower told the New York Times.

Apple plans to study the developers' sales for 2020 to see if they can take advantage of the program launched in January.

The guidelines also state that developers who have not yet published their apps in the store can still qualify for the lower 15 percent fee.

However, when developers cross the $ 1 million threshold, their fee is increased to the long-term 30 percent.

However, if they later fall below the amount, the commission cut will be lowered again.