Developers win concessions from Apple as company launches its App Store Small Business Program

Apple yesterday announced a program that will offer small and independent app developers more favourable terms on its App Store. The App Store Small Business Program will halve the commission taken by Apple to 15% for developers that earn up to $1 million over the previous year.

Although Apple will be praised for supporting small businesses, it’s important to note that such a policy change wouldn’t have come about without criticism from app developers frustrated with the way the company wields control over creators. It would be naive to see the program as pure benevolence on Apple’s part.

Because of the $1 million threshold, the program won’t impact one of the most visible organizations in the fight against App Store power. The Coalition of App Fairness, which was launched in September, comprises a number of large companies including Spotify and Epic Games. However, in a press release also made public yesterday, the group outlined that it would be putting pressure on EU regulators to investigate Apple for anticompetitiveness.

While it’s possible to be a little cynical about the interests of the Coalition of App Fairness – eg. it just wants to fight one corporate agenda only to replace it with another – the last couple of days indicate how the interests of big tech can be tackled with a bottom up and a top down approach.

Read more news about tech activism and the people driving positive change in the industry.

Apple’s reputation

Apple has a reputation for being totalitarian. The App Store Small Business Program won’t change anything in that regard. It makes no meaningful shifts in policy detail that would give more freedom to developers. For Apple, the level in control it exercises allows it to ensure quality and privacy for end users. However, as this article by Owen Williams outlines in dept,

Why Apple launched its App Store Small Business Program

In the press release published on Apple’s Newsroom, the App Store Small Business Program was presented in the context of the challenges posed by the pandemic throughout 2020. The press release states:

“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.”

CEO Tim Cook also stressed that the program would enable small businesses to “take risks on new ideas.”

When does the program begin?

The program begins at the start of 2021. Apple explains that if the $1 million threshold is passed, the developer will move to the standard 30% commission rate. If the reverse happens and developers earn less than $1 million, they will have to wait until the following year to requalify.