Apple to Halve App Fees for Small Businesses with Annual Revenue Under 1.1 Billion KRW

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Apple will reduce the App Store commission rate from the existing 30% to 15% for small and medium-sized developers worldwide starting next year. Apple and Google, which have been criticized by the IT industry for app market commissions, now put more pressure on Google with Apple's recent decision.

According to the Wall Street Journal (WSJ) on the 18th (local time), Apple announced this in the 'App Store Small Developer Support Program' for app developers worldwide.

The program targets small and medium-sized companies with annual sales of $1 million (approximately 1.1 billion KRW) or less in revenue earned through the App Store after deducting commissions. If a developer participating in this program exceeds $1 million in annual revenue, they must pay a 30% commission for the remaining period.

Apple CEO Tim Cook stated, "This decision is to help small businesses demonstrate creativity on the App Store and produce high-quality apps that satisfy customers."

Apple expects that most developers will benefit from the commission reduction. According to mobile app analytics firm App Annie, only 2,857 apps on Apple's App Store generated more than $1 million in annual sales (as of 2017). The majority of the total 1.8 million apps fall short of $1 million in annual revenue.

With Apple's move to reduce commissions, Google's position has become difficult. Google initially applied in-app payment policies only to mobile games but plans to expand them to webtoons, web novels, and digital content in general, maintaining a 30% commission rate. New apps entering the Google Play Store will be subject to this policy starting January 20 next year, and existing apps will be subject to it from October next year.

This content was produced with the assistance of AI translation services.