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Apple has received harsh criticism since its conflict with Epic Games began. Several companies and executives have pointed out the high commissions that the company has for companies and developers in the App Store.
This has gradually become one of the central issues in the legal fight between Apple and Epic, as the owners of Fortnite want the Cupertino company to somehow lower its commissions, which currently amount to 30%.
Amid all this controversy, Apple announced the App Store Small Business Program, an initiative that will reduce App Store commissions for select companies that meet certain requirements.
Find out: Lawsuit between Epic Games and Apple could affect Sony, Microsoft and Nintendo
Apple will cut its commissions in half with one condition
Through a statement, Apple explained that the App Store Small Business Program will reduce its store commissions to 15%, but only for small companies or developers who are starting their way in the industry.
Thus, those selected will not have to pay the 30% standard commission that Apple handles. However, to have the benefit of the program they must earn less or up to $ 1 million in 2020. The initiative will take effect on January 1, 2021.
“The new App Store Small Business Program will benefit the vast majority of developers who sell digital goods and services in the store, providing them with a reduced commission on paid applications and in-app purchases,” the companies noted.
The commission rate will be variable, so it will be adjusted back to 30% if the companies or developers exceed the earnings of $ 1 million. Also, it will be reduced to 15% if the earnings balance ever reaches the limit.
Tim Cook, Apple CEO, said that small businesses are very important to the global economy, so they decided to help them make their business more profitable and prosper in the future.
“The App Store has been an engine of economic growth like no other, creating millions of new jobs (…) our new program takes that progress forward, helping developers finance their small businesses, take risks with new ideas, to expand their teams and to continue making applications that enrich people’s lives “, said the manager.
In case you missed it: Apple says Epic sued him just to reinvigorate interest in Fortnite
Find more information related to Apple at this link. On the other hand, you will find news about his conflict with Epic Games on this page.