Apple Commences App Store Small Business Program

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App Store Small Business Program

Apple has commenced taking lesser commissions from small business owners according to AppleInsider. This is in respect of its recently launched App Store Small Business Program. However, the reduction in commission only applies to businesses enrolled in the program. The program was introduced by Apple in November. It offers developers that earn less than a million dollars a year a way to cut App store fees by half. Instead of paying the regular 30 percent commission rate, participants are allowed to pay only 15 percent of their sales and in-app purchases. Enrollment for the program began early December, with the program set to kick off on January 1st, 2021. However, Apple may have decided to bring the date closer and start early, at least for some developers. 

According to Appleinsider, Jacob Gorban, founder of Apparent Software and a few other participants have revealed that the reduced program fees are now in effect. Gorban tweeted the information with a couple of screenshots: 

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Developers have been charged with 30 percent commission rate by Apple since the App Store’s early days. However, most companies have voiced out their discontent about this outrageous fee over the years. Epic Games, which deliberately flouted Apple’s in-app purchasing rules by offering Fortnite players a direct way to buy in-game currency at a discount, has been leading the charge these past months. Other tech companies backed Epic’s fight, including Facebook, which blasted Apple for not reducing its commission rates for Facebook Pay. 

When the program was introduced by Apple, the company insisted that it will be beneficial to the vast majority of developers on the platform. Although this is good for individuals and small companies, some point out that it could be a move to avoid antitrust scrutiny by authorities. 

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