Apple Rolls Out Small Business Program Which Lowers App Store Fees For Smaller Developers

Last month we reported that Apple was planning on starting a Small Business Program to cut down its App Store commissions for software developers who make $1 million or less in proceeds each year from the store. Surprise! Apple has given some small iOS app developers a surprise Christmas present.

Apple has finally rolled out its new Small Business Program which slashes its fees on in-app purchases from 30% to 15% it charges some iOS app developers and it has also been confirmed by some developers who are part of the program who say the new changes have gone into effect.

Apple had announced its plan to slash the rates for apps that pull in less than $1 million a year back in November, saying that the changes would go into effect on Jan. 1, but has been reaching out to developers early according to a Macrumors report.

Jacob Gorban, the founder of Apparent Software, tweeted that the new App Store fee is now in effect. Other reports indicate that changes have gone into effect for some other developers as well.

The Cupertino, Calif. tech giant has framed the cuts, which it calls the “App Store Small Business Program,” as a way for smaller developers to “continue working to innovate and thrive during a period of unprecedented global economic challenge.

In its email to developers, Apple said that if a developer exceeds the $1 million threshold at some point in 2021, the standard 30 percent rate will apply for the rest of the year.

Apple’s App Store policies have been long criticized by developers and politicians who say the tech giant has too much control of the review process and that its commission rate is unfair. For instance, Epic Games intentionally broke Apple’s rules on in-app purchases in protest of the policies.

Epic’s clash with Apple has been backed by several other players such as Microsoft and has led to growing public discontent with Apple’s policies. There’s also the possibility that the tech giant could face an antitrust complaint in the United States.

When the program was introduced, Apple CEO Tim Cook stated that “small businesses are the backbone of our global economy” and that this new change will help them “write the next chapter of creativity and prosperity on the App Store.”