Apple slashes commission fees to developers on its App Store

By Leo Kelion
Technology desk editor

Publishedduration35 minutes agoimage copyrightReuters

Apple is halving the commission it takes from the sale of apps and virtual goods sold within them from many of the smaller developers using its stores.

From January, any existing app-maker who earned $1m (£830,000) or less from Apple's marketplaces in 2020 will only have to give up a 15% cut in 2021.

That compares to the standard rate of 30%. New developers also qualify.

It follows widespread criticism by developers of the fees Apple charges, and coincides with anti-trust scrutiny.

Chief executive Tim Cook was questioned several times about the rates his firm charges when he appeared before US lawmakers at a competition hearing in July. It emerged there that Amazon had negotiated a special 15% rate for in-app charges within its Prime Video app.

And the preceding month the European Commission opened its own probe into the marketplace's rules.

Apple, however, has characterised the move as being a natural evolution of its policies, which it had made after listening to feedback from its developer communities.

About 28 million developers use Apple's store, and the firm says the vast majority of those who charge fees will benefit.

But it has not provided a figure for how many it forecasts will be affected.

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