Apple's new program reduces App Store commission to 15 pct for small businesses

The new App Store Small Business Program will reduce App Store commission to 15 percent for small businesses earning up to USD1 million per year while the standard commission rate of 30 percent will remain in place for apps selling digital goods and services and making more than USD1 million in proceeds.

Apple on Wednesday announced a new program to help small businesses and independent developers propel their businesses forward on the App Store as they continue working to innovate and thrive during this period of unprecedented global economic challenge.

The new App Store Small Business Program will reduce App Store commission to 15 percent for small businesses earning up to USD1 million per year while the standard commission rate of 30 percent will remain in place for apps selling digital goods and services and making more than USD1 million in proceeds.

"Apps have taken on new importance as businesses adapt to a virtual world during the pandemic, and many small businesses have launched or dramatically grown their digital presence in order to continue to reach their customers and communities. The program's reduced commission means small developers and aspiring entrepreneurs will have more resources to invest in and grow their businesses in the App Store ecosystem," Apple said.

Notably, if a participating developer surpasses the USD1 million threshold, the standard commission rate will apply for the remainder of the year. Similarly, if a developer's business falls below the USD1 million threshold in a future calendar year, they can requalify for the 15 percent commission the year after.

Apple says the new program will help generate even more digital commerce and app innovations, support new jobs, and help small and independent developers continue to bring great software to Apple users.

The App Store Small Business Program will launch on January 1, 2021 and comprehensive details about the program will be released in early December.