Apple begins enrolling developers in its ‘Small Business Program’ 

In response to Epic Games’ lawsuit, Apple had halved its App Store fee from 30 percent to 15 percent for in-app purchases which include transactions made through Apple. Now, Apple has began to notify developers about this program. As a result of this ‘Small Business Program’ registered developers can enjoy the reduced 15 percent cut and potentially earn more. 

However, there is a catch. Registered developers making less than $1 Million USD from the App Store are the only ones who will be enjoying this increased revenue. These small developers account for 98 percent of the apps listed on the App Store. While the small developers make majority of the App Store, most of its revenue comes from large corporations like Epic Games’ Fortnite. ‘Large Corporations’ as defined by Apple earn more than $1M per year. 

Developers have been able to sign up for the Small Business Programme since December 3rd and Apple has now issued e-mails notifying that they have been accepted. The reduced cut comes into effect starting next year.

While smaller developers have praised Apple for this move, large app makers like Spotify have substantially criticised the move, saying it undermines App Store’s rules. 

Developers who fail to transfer their app to this new program by December 31st, 2020 will no longer be able to enjoy the benefit. Apple says this move will enable developers invest more in their app, and hence providing even more polished creations. 

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