Apple Store has drawn much flak over its monopolistic practices, high fees, and frequent change in guidelines. The company is fighting a battle with Epic over the App Store commission. Last week, Apple announced that small developers with less than $1-Million in revenue will only have to pay 15% fees instead of the usual 30 percent.
Apple has issued a press release featuring small developers who are happy with the move. The company has listed quotes from several developers who claim the changes will benefit small businesses and help them grow. Meanwhile, Apple says that a large majority of developers will be benefitted from this move.
Under the new program, which launches January 1, 2021, the vast majority of developers who sell digital goods and services on the App Store can qualify for a reduced 15 percent commission. From focusing on their apps full time, to growing their teams, experimenting with features, and even launching new apps, developers are ready to write the next chapter of innovation and creativity on the App Store.
Meanwhile, bigger developers like Epic and Spotify will continue to pay a 30% App Store distribution fees. Needless to say, they are irked and expressed displeasure over how Apple is trying to divide the group of developers.
This is what Marcus Gners, co-founder of, Lifesum has to say.
This was a brilliant move and a great way of making it easier for developers in the most sensitive stage to survive. This, plus how the App Store makes it easier for developers to get off the ground, is great for small companies.”
Curtis Herbert, founder, Consumed by Code, is excited about the news.
I was very excited to wake up to the news. This translates to a 21 percent increase in revenue for us, which is huge. It lowers the bar for new developers trying to start a business. As COVID has hit many of us hard this year, this is a much-needed break that will help many of us weather the storm.
Epic’s Sweeney said Apple is “gerrymandering the community with a patchwork of special deals.” Spotify said the changes confirm that “App Store policies are arbitrary and capricious.” Bigger companies dont seem to be happy about Apple’s new App Store Small Business program as it offers them no benefit.
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