Apple to halve commission rate for apps that generate $1 million or less per year - Business Insider

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Apple's app program. which may read well with lawmakers who argue the company stifles competition, is primarily a calculated capitulation

in gross revenues will only have to pay 15% commissions on in-app purchases, half of the current 30%. Karl Mondon/Digital First Media/The Mercury News via Getty Images

All new apps will qualify, and existing ones will be assessed based on their 2020 outcomes. Developers will be able to apply for review yearly, but if a company qualifies and then surpasses the $1.3 million threshold during the year, it will automatically be hit with the 30% commission on in-app purchases and won't have the option to re-apply the following year.

Developers have long complained that Apple's fees stifle their businesses and it has too much power as a gatekeeper. There are more than active Apple devices worldwide, and the only way for apps to get on iOS is through Apple's App Store. The company has come under repeated fire for the so-called "Apple Tax," most notably from companies like Spotify and Fortnite maker Epic Games.

 

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