Apple reducing App Store cut to 15% in January for some developers

Apple is slicing the cut they take from small developers on the App Store beginning next year.

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Apple has found themselves in a heated back and forth with Epic Games ever since they booted Fortnite from the App Store earlier this year. The dispute prompted many to come out and speak against Apple’s current App Store policies, which includes a 30% price cut for the tech giant. Amidst its ongoing legal battle, Apple is introducing “The App Store Small Business Program” which will slash Apple’s cut down to 15% for most of the developers on the storefront starting in January 2021.

“The new App Store Small Business Program will benefit the vast majority of developers who sell digital goods and services on the store, providing them with a reduced commission on paid apps and in-app purchases. Developers can qualify for the program and a reduced, 15 percent commission if they earned up to $1 million in proceeds during the previous calendar year,” Apple stated on its website. Not every developer will be eligible for this program, but it will help those that make up the majority of the App Store.

The App Store policies have been a point of debate for a while, with those talks heating up following Apple’s very public feud with Epic Games. After failing to meet the App Store's terms of service, thus getting Fortnite removed from the store, Epic Games stated in a subsequent lawsuit that Apple’s policies were greedy. This move is almost certainly in response to the criticisms that Apple has received in light of the feud.

The App Store Small Business program will go into effect for qualifying developers on January 1, 2020. Devs will need to submit an application in order to take advantage of the 15% price cut. For more on Apple and their ongoing feud with Epic Games, stay with us here on Shacknews.

Contributing Editor

Donovan is a young journalist from Maryland, who likes to game. His oldest gaming memory is playing Pajama Sam on his mom's desktop during weekends. Pokémon Emerald, Halo 2, and the original Star Wars Battlefront 2 were some of the most influential titles in awakening his love for video games. After interning for Shacknews throughout college, Donovan graduated from Bowie State University in 2020 with a major in broadcast journalism and joined the team full-time. He is a huge Star Wars nerd and film fanatic that will talk with you about movies and games all day. You can follow him on twitter @Donimals_

From The Chatty
  • reply
    November 18, 2020 9:35 AM

    Donovan Erskine posted a new article, Apple reducing App Store cut in January for most developers

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      November 18, 2020 9:40 AM

      This is good news. Wonder how long it'll take Google to follow suit

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      November 18, 2020 9:43 AM

      I find it hard to belt that the majority of developers make $1 million in revenue a year to qualify for the 15% cut otherwise it’s still 30%. I mean it’s better than nothing. I just don’t believe Apple with their “majority” here.

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        November 18, 2020 9:48 AM

        I think you've got this backwards. You qualify for the program if you're making LESS than $1 million a year and Apple will take 15%.

        If you make MORE than $1 million a year, Apple is getting 30%.

        I'm very sure the vast majority of developers/publishers make less than $1 million a year.

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          November 18, 2020 10:06 AM

          You are right I completely read this wrong. I blame lack of food. That is way better and should cover the majority. Thanks for catching my mistake.

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