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Apple Reduces App Store Commission to 15% for Smaller Developers

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Nov 18, 2020, 9:36 AM   by Rich Brome

Apple today announced the "App Store Small Business Program", which amounts to a major reduction of the company's controversial 30% commission from app developers. Starting January 1, 2021, businesses earning $1 million or less in annual proceeds can apply for the program and enjoy a reduced commission of 15% on paid apps and in-app purchases, instead of the usual 30%. Apple has faced increased pressure this year to change its rules and lower its commission rates. Epic Games and Spotify have been most vocal, and helped form the Coalition for App Fairness lobbying group. Google also charges a 30% commission for its app store. According to Apple, its App Store ecosystem facilitated $519 billion in commerce worldwide in 2019.

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