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Apple dropping App Store cut to 15 per cent in January 2021

Published: 17:25, 18 November 2020
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It appears that Apple's feud with Epic Games has proven to be beneficial to users well before the courts decided who's right, as the company announced a hefty commission cut for smaller businesses.

No, that doesn't mean Fortnite is coming back, as their legal battle with Epic is likely to continue well into 2021. Moreover, the new commission will apply to only those businesses that earned up to $1 million in proceeds during the previous calendar year, and Fortnite used to double that on a daily basis on iOS. 

"The App Store Small Business Program, which will launch on January 1, 2021, comes at an important time as small and independent developers continue working to innovate and thrive during a period of unprecedented global economic challenge", the company wrote.

Ironically, Apple's reasoning pretty much echoes the concerns of smaller developers, many of whom openly voiced their discontent with App Store's terms and conditions in the wake of Epic's transgressions. Better late than never, though, as many devs will surely agree. 

Apple listed the following conditions:

  • Existing developers who made up to $1 million in 2020 for all of their apps, as well as developers new to the App Store, can qualify for the program and the reduced commission
  • If a participating developer surpasses the $1 million threshold, the standard commission rate will apply for the remainder of the year
  • If a developer’s business falls below the $1 million threshold in a future calendar year, they can requalify for the 15 percent commission the year after

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We suppose the above conditions are much kinder to those devs and apps whose success blasts them beyond $1 million than for those whose fortunes start winding down, but at least we see the industry starting to rethink the analogue fees of old being applied to digital goods. 

You can find Apple's announcement here .

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