Today, Apple announced its new initiative called the App Store Small Business Program, which reduces the cost developers have to pay to use the iOS store.
Thanks to this program, starting January 1, 2021, companies that earned less than $1 million in the previous year will pay 15% commission on App Store revenue from apps and in-app purchases.
Apple’s share will remain 30% for developers who earn more than $1 million in a year.
The App Store Small Business Program is important for small and independent developers in this period of unprecedented economic challenge. The program’s reduced commission aims to motivate small developers and aspiring entrepreneurs to invest in the App Store ecosystem and grow their business.
To qualify for the program from 2021, you must have earned less than $1 million in revenue by 2020.
Making a statement on the subject, Apple’s CEO Tim Cook stated that small businesses are the backbone of the 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.”
Last August, criticism against Apple grew enormously due to App Store commissions. Facebook, one of many developers and companies that expressed its discomfort, wanted to publish an online event product within its application for the benefit of small businesses. Although Facebook requested a waiver from Apple for this, it received a negative response from Apple.
It seems Apple has finally begun to take action against the growing backlash that started with the Epic Games lawsuits. Let’s see what kind of news awaits us in the future.
More details about the initiative will be revealed in December.