Apple to cut App Store fees for some developers
The App Store has been at the center of tensions between Apple and app developers, and now Apple is looking to cool things down with a price cut.
The tech giant announced Wednesday that it will lower the commission it takes to just 15% from 30 % to those software developers who make $1 million or less in proceeds each year from the store. For those app developers who rake in more than a million dollars in App Store sales - there will be no discount.
Rules and fees tied to the App Store have come under fire from app developers large and small including Microsoft, Spotify and Epic Games.
There have been complaints from smaller companies and startups that the fees deprive consumers of choice and push app prices higher.
Some critics have panned Apple's price cut as nothing more than a publicity stunt.
The CEO of Epic Games, maker of the popular Fortnite franchise told Reuters: "This would be something to celebrate were it not a calculated move by Apple to divide app creators and preserve their monopoly on stores and payments, again breaking the promise of treating all developers equally."
Apple has previously maintained that in exchange for the fee - developers get the benefit of putting their product in front of Apple's huge customer base.
The discount, which will be based on the previous year's sales, goes into effect on January 1st.
