Apple announced the launch of the App Store Small Business Program, which allows App Store developers earning less than $1 million a year to reduce their current commissions. Apple typically accounts for 30% of all application sales and purchases, but the new policy will reduce this figure to 15% for small application developers and vendors. This is a very big discount, which benefits a number of companies currently selling products in the App Store! New promoters are immediately entitled to a reduced rate. For current developers, Apple will analyze the 2020 figures to decide which ones qualify in January.
In a statement, Apple CEO Tim Cook spoke about the new program.
Small businesses are the foundation of our global economy and the beating heart of innovation and opportunity in communities around the world. We are launching this program to help small business owners write the next chapter of creativity and prosperity in the App Store, and to develop high-quality applications that our customers love, Cook said. The App Store has been the engine of economic growth like no other, creating millions of new jobs and a path to entrepreneurship accessible to anyone with a great idea. Our new program supports this progress by helping developers finance their small businesses, launch new ideas, expand their teams, and continue to create applications that enrich people’s lives.
Small promoters with sales in excess of $1 million will be removed from the program. However, developers can re-qualify based on future changes. 30% of Apple’s orders in recent months have been a hot topic after a very public battle with publisher Fortnite Epic Games. Contrary to Apple’s Terms of Service, Epic released a patch for Fortnite that allowed iOS players to avoid Apple’s 30% commission for in-game purchases. After a long battle that led to numerous searches in Apple via Fortnite, the game was removed from the App Store.
After the withdrawal, Epic Games, Spotify and a number of other companies formed the App Justice Coalition, a group that wants to fight the monopoly on Apple’s ecosystem. Epic Games would probably be exempt from the new Commission policy if the company’s games were still in the App Store, but it is difficult not to wonder if the small business program of the App Store was created under pressure from Epic Games and other companies.
Whatever the reason for this new policy, it seems that small initiators will benefit from it! The growth of digital markets has made it difficult for developers to draw attention to their products, especially in such a competitive environment. Apple’s new policy should make it easier for small developers to use it.
What do you think of the App Store application for small businesses? Do you think this will help little developers? Talk about it in the comments or share your ideas directly on Twitter at @Marcdachamp to talk about everything to do with games!