Apple announces App Store Small Business Programme

Apple said that the App Store’s standard commission rate of 30% will remain in place for apps selling digital goods and services and making more than $1 million in proceeds.

Developers can qualify for the programme and a reduced, 15% commission if they earned up to $1 million in proceeds during the previous calendar year. (REUTERS)

Apple today announced a new programme to help small businesses and independent developers take their businesses to the next level on the App Store. The programme will launch on January 1, 2021.

Apple says that the new program called the App Store Small Business Programme will benefit developers who sell digital goods and services on the App Store and provide them with a reduced commission on paid apps and in-app purchases. Developers can qualify for the programme and a reduced, 15% commission if they earned up to $1 million in proceeds during the previous calendar year.

“Small businesses are the backbone of our global economy and the beating heart of innovation and opportunity in communities around the world. 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,” Apple CEO Tim Cook said on the occasion.

“Our new programme carries that progress forward — helping developers fund their small businesses, take risks on new ideas, expand their teams, and continue to make apps that enrich people's lives,” he added.

Here are some of the key highlights of the program:

• 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 programme 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% commission the year after.

Apple said that the App Store's standard commission rate of 30% will remain in place for apps selling digital goods and services and making more than $1 million in proceeds.