09:38
+27 C°
Traffic jam:   4
$
72.2216
85.9943

Apple will reduce fees at the App Store for small businesses

19 November 2020
1827
2 min.
5
Apple will reduce fees at the App Store for small businesses

Applications in AppStore

Apple (NASDAQ:AAPL) on Wednesday said it will cut the fee charged to application developers for accessing the App Store by half (up to 15%) if their annual net sales on the platform are less than $1 million.

Apple charges 30% commission for developers of paid mobile applications and for purchases inside applications in the App Store. This shop is for most people today the only way to install software on their iPhone.

Many may see this change in Apple's approach as a step towards legislators and developers of applications for the App Store, as this year the company was severely criticized for its policy.

From the beginning of the year, the rules of Apple's new small business programme will apply.

Those who made a profit above the $1 million threshold will be billed at the standard rate of 30%.

The main beneficiaries of Apple's policy change will be those developers who offer virtual education courses or lessons through a fixed fee application. Apple does not charge a fee for material goods purchased through the applications, or for booking face-to-face classes or ordering through Uber. However, commission will be charged for events that are held online.

In a separate announcement on its website, Apple has highlighted the application for swimming coaches, the children's programming application and indie games as companies that can benefit from policy changes.

The new rules should not be confused with Apple's similar practice, according to which those large companies that use the App Store's services during the second year of subscription or more pay a lower commission rate of 15%.

The new policy will not affect the manufacturer of mobile games Epic Games in any way. To date, Epic Games has earned over $1.2 billion from the App Store, which deprives it of the right to reduce its commission.

Spotify, which is also challenging the App Store's fees, reacted to this change on Tuesday.

The CEO of Spotify Daniel Ek said: "Apple's anti-competitive behaviour threatens all iOS developers, and this last step demonstrates once again that their App Store policy is arbitrary and capricious".

Persons1 and Companies4 in the news

CEO and co-founder of the Spotify
1 place
Epic Games
1 place
Spotify
2 place
Uber
3 place
Apple
4 place
Section:

Discussion

Rating companies
Tesla
69 Mention
Apple
68 Mention
Nasdaq
66 Mention
Amazon
56 Mention
Dow Jones
53 Mention
Facebook
50 Mention
Microsoft
36 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director