Apple has announced that it will cut the amount of commission it charges app developers as part of a new Small Business Program. Developers earning less than $1 million a year will now pay 15 percent on all transactions, half the current rate of 30 percent. Apple says the program, which begins on January 1st 2021, will apply to app sales and in-app purchases, and benefits the “vast majority” of developers on the platform. CEO Tim Cook says that “small businesses are the backbone of our global economy” and that the program will help them “write the next chapter of creativity and prosperity on the App Store.”
The company will outline a more detailed set of rules in future, but the basic gist is that any company making less than $1 million only pays 15 percent commission. When their fees hit that threshold, the 30 percent commission rate will kick in for the rest of that year. Should their future revenue fall back down below $1 million, they’ll automatically return to the cheaper tariff.