Apple to cut App Store fees in half for most developers

Apple has faced ongoing scrutiny from government regulators and criticism from developers about the percentage of revenue it takes for App Store purchases. — AFP

Apple Inc is cutting by half the fees charged to most developers who sell software and services on the App Store, marking the biggest change to the store’s revenue structure since the iPhone maker launched the service in 2008. That wasn’t enough for some developers.

The company is lowering the App Store fee to 15% from 30% for developers who produce as much as US$1mil (RM4.09mil) in annual revenue from their apps and those who are new to the store. The change will go into effect Jan 1 as part of an App Store Small Business Program, Apple said Nov 18. The new structure will apply to the "vast majority” of developers who charge for apps and in-app purchases on Apple’s devices, according to a statement. It won’t affect major apps, such as those from Netflix Inc and Spotify Technology SA.