Apple begins charging lower commission on App Store sales as part of its Small Business Programme

The programme was expected to launch on January 1, 2021 but seems it has begun rolling out early.

Apple has reportedly begun rolling lower App Store commission for 'Small Business' developers (REUTERS)

Apple has begun charging a smaller commission from some developers who are part of the company's new Small Business Programme.

According to 9to5Mac, some developers are already getting the reduced Apple commission on App Store Connect. Interestingly, the programme was expected to launch on January 1, 2021.

“The change in rate of proceeds to 15% seems to be active already. I'm seeing proceeds of $5.09 for $5.99 in the United States. Thank you, Apple,” wrote a developer on Twitter.

The change in rate of proceeds to 15% seems to be active already. I'm seeing proceeds of $5.09 for $5.99 in the United States. Thank you, Apple. 🙏 pic.twitter.com/5VurdAOFNO

— Aditya Rajveer (@AdityaRajveer) December 24, 2020

Another developer corroborated the change, stating Apple has started charging 15% commission instead of 30% for Nikola app.

It's worth noting that their initial comms about getting into the program seemed to intentionally leave some wiggle room. "The commission rate on your paid apps and in-app purchases will be 15% by January 1, 2021" pic.twitter.com/x55CF5M18S

— David Hodge Coding (@HodgeCoding) December 24, 2020

In case you did not know, Apple had introduced the Small Business Programme last month. Under the scheme, Apple reduced its commission for developers who earned less than $1 million in proceeds during the previous calendar year.

It is worth noting that existing developers who made up to $1 million in 2020 for all of their apps and developers new to the App Store are eligible for the programme.

“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 had said.

The programme does not mean Apple has stopped the App Store's standard commission rate of 30%.

Apple's Small Business Programme came after the company drew major heat from several developers and companies over the commission. The company also faced an antitrust investigation into the App Store policies. It also locked in a legal tussle with Fortnite-maker Epic Games over the latter's in-app payment options. Microsoft and Facebook are also among top companies that have criticised Apple's 30% commission.