Apple would cut the fees it charges app developers

An American technology company, that designs, develops, and sells consumer electronics, computer software, and online services, Apple, announced that it would cut the fees it charges app developers from 30% to 15% in the developer made less than 1% million in the previous year.

Significantly, the company announced the change for small businesses would go into effect on January 1, 2020, while apps that earn above $1 million a year will continue to be covered by Apple’s existing fee structure, which prices 30%.

Apple announced that the extension would help businesses by giving them more time to hold paid digital events rather than in-person events during the Coronavirus epidemic, without the extra fee.

It was not instantly obvious how many small app developers will be affected by the change. The giant company Apple announced that the update would benefit most developers on the App Store; however, Apple did not elaborate.

The company initially waived the in-app purchase requirement for group classes and events in September, after Facebook launched a paid events feature and tried to add a copy inside its apps, warning that a cut of transactions for paid events would be successful for Apple. However, Apple only delayed its fees by December. Monday’s announcement continued it for six more months.

Over 97% of iOS app publishers generate under $1 million a year

Significantly, over 97% of iOS app publishers generate under $1 million a year in app-based consumer spending. According to Sensor Towel, those developers’ economic activity accounted for an estimated 5% of the iOS App Store’s total revenues in the prior year.

It has to be mentioned that the company’s App Stores fee has increasingly come under scrutiny as lawmakers and regulators have zeroed in on Apple’s dominance over IOS.

Furthermore, Apple’s developer policies have been criticized for helping to preserve Apple’s dominance. In 2020 summer, Epic Games, the maker of the hit online game Fortnite, filed an antitrust lawsuit against Apple that could change how app stores run in the United States. Additionally, Epic extended its litigation against Apple to Australia.

The company has earlier announced that its fee structure reflects common practice across the digital services industry. In 2020, it approved a report by the Analysis Group, a consulting firm, asserting that claim. According to the giant apple, its policies are intended to improve consumer security.

Apple’s spokesman did not answer a direct answer on a question of whether the recent antitrust scrutiny may have played a role. However, the spokesman said that it has only ever lowered the fees developers must pay.