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

Published , by Donovan Erskine

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.