Apple Cuts Fees in two for App Store Developers Earning Under $1 Million
The feud between Apple and big-name iOS developers like Epic Games is constantly on the rage within the courts, but the iPhone maker has extended an olive branch to smaller devs. Going forward, Apple’s customary 30 percent cut of sales on the iOS platform will drop to just 15 % for smaller developers. Epic, however, claims this really is merely an effort to split the developer community.
The saga began some time ago when Epic released a new version of Fortnite on Android and iOS that included a direct purchase option, circumventing the 30 % cut Google and Apple claim. Naturally, both app stores suspended Fortnite, that is among the most popular mobile games in the world.
We don’t understand what the outcome of Epic’s case against Apple will be, but the company has found allies in other iOS developers who've felt abused by App Store policies. The upcoming changes to the App Store model could strip away a number of that support. Starting the coming year, Apple states that it will only charge developers a 15 percent fee if their sales through the App Store (excluding commission payments) are below $1 million. Developers will continue make payment on 30 % fee on sales exceeding $1 million.
Epic CEO Tim Sweeny continues to be clear about his feelings toward Apple in the past, and he’s not holding back anything following this latest move. “Apple is hoping to remove enough critics that they'll pull off their blockade on competition and 30% tax of all in-app purchases. But consumers will still pay inflated prices marked up by the Apple tax,” he said. The Coalition for App Fairness, which is backed by Epic, Basecamp, Spotify, yet others called the change a “symbolic gesture.”
Developers desire a level arena from Apple, Not really a symbolic gesture. Apple's announcement today is really a calculated move and and ignores fundamental flaws with the App Store, specifically:
— Coalition for App Fairness (@appfairness) November 18, 2021
The lower fees aren’t just about weakening Epic’s pr position. The united states House of Representatives has been investigating several large tech firms for proof of anticompetitive behavior — there is a study earlier this year that called out Apple’s ban on rival app marketplaces as a potential regulatory issue. By lowering its fees for small developers, Apple reaches look like it’s being bold the little guy.
Apple has long maintained that its fees are appropriate, and it suggests Google as proof. The Play Store charges the same fee for most purchases, but it’s going to be hard for Google to justify keeping the 30 percent fee now that Apple has lowered it for almost everyone.