Apple Starts Charging Reduced App Store Commission From Some Developers

Apple appears to have started rolling out its reduced App Store commission for some developers. Last month, the Cupertino company announced the App Store Small Business Programme to cut its App Store commission from the existing 30 percent to 15 percent. The programme was planned to be available on January 1, 2021.

However, some developers have now reported on social media that the reduced commission rate is now live for their App Store Connect accounts. The initiative is notably not meant for all Apple developers and is limited to the ones who earn up to $1 million (roughly Rs. 7.4 crores) in annual sales per year from all their apps.

As spotted by Apple Insider, developers including Jacob Gorban of Winnipeg-based software firm Apparent Software have started reporting a 15-percent dip in Apple’s App Store commission. Some other developers have also reported an identical change.

The reduced App Store commission rate doesn’t seem to be limited to developers in the US and Canada and is also rolling out for independent app developers in markets including India.

“The change in rate of proceeds to 15 percent seems to be active already,” tweeted Rajkot-based developer Aditya Rajveer of music app Marvis. “I’m seeing proceeds of $5.09 for $5.99 in the United States.”

Apple’s move with early rollout of the reduced commission rate has been welcomed by many app developers. “I’d say it was really a great surprise that Apple didn’t wait for January 1 to reduce the commissions, they wanted to provide it as a Christmas gift to us. The reduced commission helps a ton,” Rajveer told Gadgets 360.

It is important to highlight that the App Store Small Business Programme is limited to the existing developers who made up to $1 million in 2020 for all their apps and the developers new to the App Store. The company stated in its announcement in November that developers would be required to enrol for the initiative to stand eligible for the reduced cut.

Several app developers posted on Twitter that Apple started accepting enrolees for the programme earlier this week. An email was sent by the company to inform developers about their enrolment, though it didn’t highlight early rollout.

Apple faced strong criticism from the developer community and regulators for charging the 30 percent commission. Companies including Basecamp and Spotify hit the company hard for cutting their revenues through the commission that is applicable for both in-app purchases take place through their apps and all purchases their users make through the App Store.

The increase in outrage and regulatory pressure essentially pushed Apple to come out with the App Store Small Business Programme.