Apple is reducing the cut it takes from smaller developers on the App StorePlatforms: iOS
Apple is set to shake up how the App Store works, with a reduction in the commission it receives from developers who publish apps on the store. From January, smaller companies on the App Store will see the cut they pay to Apple halve, providing the companies qualify for the scheme.
Picked up by The Verge, the announcement from Apple comes as part of the company's App Store Small Business Program, which will allow developers who earn less than $1 million in annual sales across all of their apps on the store. If companies qualify they will see Apple reduce the cut they take from 30 percent to 15 percent, across all in-app purchases and any paid app revenue.
While the 50 percent reduction will be welcomed by those smaller developers who do qualify, the cumulative nature of the qualifying criteria means that those companies with multiple apps on the App Store may struggle to qualify.
Still, it's welcome news for the App Store, which has been in the news this year for other reasons. The ongoing tussle between Apple and Epic Games is currently suspended until the two companies meet in court in May next year, with Epic recently scoring an early victory. Thanks to a court order filed last month, Apple cannot take any further action against Epic until the larger case between the two is settled.
Taking into account the battle for the App Store that's going on, which may have started with Fortnite but has since turned into a mudslinging match between the two companies. From Microsoft getting involved and backing Epic to Epic's 1984-inspired video in Fortnite which really needs to be seen to be believed, this is going to hang around Apple until next May when the trial gets going for real, regardless of a 50 percent cut that will exclude developers who publish multiple apps.