Apple Promised to Cut App Store Commissions by half to 15%

Apple said Wednesday it will cut its App Store commission rate to 15% for software developers with less than $1 million in annual net sales on its platform.

Apple currently takes a 30% commission from the total price of paid apps and in-app purchases from the App Store. For some small app makers, the new policy could cut the amount that they pay Apple in half.

Apple says the App Store Small Business Program will begin Jan. 1 and that developers who qualify will receive reduced App Store fees for paid app and in-app purchases. New developers who haven’t published on the App Store before will also qualify for the lower, 15% commission fee.

Apple Promised to Cut App Store Commissions by half to 15%
Tim Cook

The move is an olive branch from Apple as lawmakers around the world are increasingly focusing on its business practices for the App Store, which is the only way for most people to install software on an iPhone or iPad. A report from the House Judiciary Subcommittee on Antitrust published in October says Apple generates “supra-normal profits” from the App Store.

The new program is for small developers who make less than $1 million per year across all their apps on Apple’s App Store, after Apple’s fees. Once developers pass that threshold, they’ll be billed at the standard 30% rate, Apple said. If they later fall under $1 million in sales for a calendar year, the lower commission can be restored. Apple said it will reveal more details about the terms of the reduced commissions next month.


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