Apple App Store announced a significant change in its commission structure. The new program, called the App Store Small Business Program, reduced the commission rate it received from developers who earned less than $ 1 million from the App Store in the previous calendar year from 30 percent to 15 percent. Apple will accept developers whose post-commission income does not exceed $ 1 million into the program.
For example; a developer earned less than $ 1 million in revenue after a commission cut from the App Store in 2020. This developer will be able to take advantage of the Small Business Program in 2021. If the post-commission income exceeds $ 1 million by July 2021, the developer will be removed from the program and he will be charged a commission at the standard rate by the end of the year.
If a developer stays below the $ 1 million threshold in the coming years, they will be able to participate in the program again.
Apple’s new program will also affect subscription-based applications. The company currently charges 30 percent commission for the first year on subscriptions initiated from within the app. If the subscription is continued, the commission rate decreases to 15 percent in the following years. Developers who are eligible for the new program will be subject to a 15 percent commission for the first year for subscriptions initiated within the application.
Apple CEO Tim Cook said the following for the new App Store program: “Small businesses; It is the backbone of the global economy, the beating heart of innovation and opportunity for communities around the world. With our new program, we will support small business owners in the App Store with their creativity and prosperity on the platform and help them develop apps that our users will love. “