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The public dispute between Apple and Epic Games over App Store fees took a particularly interesting turn as Apple announced it is cutting its fees for some developers – but only for those earning less than $ 1 million in revenue. per year.
The App Store Small Business program will go into effect in January and rates will be reduced from the standard 30% to 15% for qualified developers.
The decision to cut fees in half should significantly benefit both small and independent developers, with Apple saying the change will affect the “vast majority” of developers. New developers will qualify immediately, while others will have to apply based on their earnings in 2020.
It’s a big change for the App Store, but it’s important to note that this may only cause a small cut in Apple’s earnings. App analytics firm Sensor Tower estimates that while the change affects 98% of companies that pay a commission to Apple, these developers accounted for less than 5% of App Store revenue last year.
Apple store vs Epic games
Epic Games, of course, has been a major opponent of the App Store tariffs, starting a dramatic legal battle after introducing an alternative payment system for Fortnite mobile (resulting in Apple and Google having pulled the game from their stores). .
Ironically, Epic will not qualify for this further fee cut, despite positioning itself as a fighter on behalf of all developers and claiming that the “exorbitant” 30% commissions in Apple and Google stores have stifled the competition.
This change from Apple could make it harder for Epic to argue that it is defending smaller developers with its cause, since most now appear to be included in the cut.
Although Epic has previously complained, Apple has blocked payment methods such as Mastercard and Paypal, which charge fees from 2.5 to 3.5%, Epic may argue that this reduction is not enough.
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