Apple is all set to slash the commission it takes from small businesses selling programmes on its App Store, the company said Wednesday, but the tech giant will still take a 30% cut from major developers, reported AFP.
Starting from 2021, the iPhone manufacturer said developers who make less than $1 million from selling apps on its store will see Apple’s revenue bite halved to 15%.
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The announcement, however, will have no effect on developers that generate huge amounts of cash from wildly popular apps and videogames.
There has been constant a rift between Apple and the developer of the blockbuster game Fortnite, who have alleged the California-based company’s tight control of its App Store, and its 30% cut of revenue, counts as monopolistic behaviour.
It started when Apple pulled Fortnite from its store in August after Epic Games released an update that dodges revenue sharing. A trial to resolve the dispute is not expected until next year.
Apple said the “vast majority” of developers will benefit from its App Store Small Business Programme — launched to give companies a boost during the pandemic.
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“Small businesses are the backbone of our global economy and the beating heart of innovation and opportunity in communities around the world,” Apple CEO Tim Cook said, as per AFP inputs.
“We’re launching this programme to help small business owners write the next chapter of creativity and prosperity on the App Store, and to build the kind of quality apps our customers love.”