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Apple takes a 30% cut of most purchases made on the App Store,
although the commission drops to 15% for subscriptions that
remain active for more than a year.
Apple said Wednesday developers will automatically get the lower
15% rate if they generate $1 million or less in proceeds -
defined as the portion of App Store purchases that the developer
keeps - in a calendar year.
Apple's App Store fees and rules have come under fire from both
large software firms such as Microsoft Corp, Spotify Technology
SA and Match Group Inc as well as numerous startups and smaller
companies that allege the fees deprive consumers of choices and
push up the price of apps.
Apple has responded by saying its rules apply evenly to
developers and that the App Store provides an easy way to reach
its huge base of users without having to set up payment systems
in the 175 countries where it operates.
Apple said the new program will start on Jan. 1, 2021.
Software developers who netted less than $1 million from the App
Store this year will qualify for the 15% rate next year. If the
developer's proceeds rise above the $1 million threshold the
next year, Apple's standard rates kick in for the rest of that
year. If the developer's proceeds fall below $1 million in a
given year, they become eligible for the lower rate the next
year.
"Small businesses are the backbone of our global economy and the
beating heart of innovation and opportunity in communities
around the world," Apple Chief Executive Tim Cook said in a
statement.
Apple said it will give more details on which developers qualify
next month.
(Reporting by Stephen Nellis in San Francisco; editing by
Richard Pullin)
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