Apple Cuts App Store Tax for Lower Sales Developers – Share Loses Slightly | 18/11/20



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App developers who earn less than a million dollars a year on Apple’s download platforms will pay a lower rate for their digital proceeds in the future.

Instead of the usual 30 percent, it will be 15 percent for the following year, Apple announced Wednesday. The iPhone company said it wanted to support developers in the Corona crisis and at the same time saw the move as an evolution of its app store in general. Apple has been increasingly criticized for the amount of the withdrawal.

The program will start next year. The basis will be 2020 revenues after deducting the fee paid for the app store. If that were up to $ 1 million, the developer qualifies for the 15 percent withdrawal for 2021. If his income exceeds $ 1 million in the next year, 30 percent will be owed by this point. If the proceeds subsequently fall below the 1 million mark, the developer can re-participate in the 15% program the following year. The model should be applied permanently.

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Apple set the rate for digital products and services at 30% when the App Store was launched in 2008. The fee is payable, for example, when selling apps, making in-app purchases and subscribing. For subscriptions, Apple lowered the fee from 30 to 15 percent in the second year in 2016.

30% were recently criticized as too high by smaller app developers, among others. So far, Apple has emphasized that the platform offers them benefits such as easy customer access and security. At the same time, some big app providers like Epic Games and Spotify are currently attacking the business model of the download platform as a whole. The creators of the popular online game “Fortnite” are suing Apple for offering in-app purchases without withdrawal. Music streaming market leader Spotify accuses Apple of unfair competition because the company is not burdened with a subscription revenue tax for its in-house Apple Music service. The app store controversy is already at the center of politics in the United States.

Currently, Apple shares on NASDAQ are down 0.12% to $ 119.27.

/ so / DP / stk

CUPERTINO (international awp)

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