Apple is slashing some App Store fees amid battle with Fortnite

November 18, 2020 

Following months of criticisms over its hefty fees, Apple announced plans to slash its App Store commissions in half — but only for apps that pull in less than $1 million per year.

The iPhone maker, which even kicked   said Wednesday that smaller app developers will automatically receive the new rate beginning Jan. 1. Apple’s previous policy was to slap a flat 30-percent tax on all in-app purchases and subscriptions.

The Cupertino, Calif. tech giant framed the cut, dubbed the “App Store Small Business Program,” as a way for smaller developers to “continue working to innovate and thrive during a period of unprecedented global economic challenge.”

It also arrives as Apple has been accused by developers and politicians of exerting monopoly power over its App Store, which is the only way to get software onto its iPhones and iPads.

The fees took center stage earlier this year, when Apple kicked the ultra-popular game ‘Fortnite’ off of its app store after developer Epic Games introduced a payments tool that would have allowed it to circumvent the fee.

The clash led to Epic launching a crusade against Apple’s policies, and has received support from companies with large amounts of business coming from the App Store, including Spotify and Tinder parent Match Group.

The companies are now embroiled in a high-stakes lawsuit, with Epic asking for “injunctive relief to allow fair competition in these two key markets that directly affect hundreds of millions of consumers and tens of thousands, if not more, of third-party app developers.”

Epic CEO Tim Sweeney said in a statement responding to Apple’s announcement that it was “a calculated move” designed to divide app creators, and that it breaks “the promise of treating all developers equally.”

“Apple is hoping to remove enough critics that they can get away with their blockade on competition and 30 percent tax on most in-app purchases,” he added.

Latest News

November 24, 2020
Virginia Democrats, Thrilled With Biden Victory, Aren't Looking for Carbon Copy

ANNANDALE, Va. -- Katherine White spent countless hours this year organizing voters to back Joseph R. Biden Jr. for president. One of millions of suburban women who became politically active for the first time after Donald J. Trump's election in 2016, Ms. White is among the coterie of Biden voters processing his victory by thinking […]

Read More
November 24, 2020
How to Pretend You're in Hawaii Tonight

While your travel plans may be on hold, you can pretend you're somewhere new for the night. Around the World at Home invites you to channel the spirit of a new place each week with recommendations on how to explore the culture, all from the comfort of your home. Beyond the palm trees and mai […]

Read More
November 24, 2020
How to Game Black Friday Travel Deals During a Pandemic

Normally, the 14-room Tierra Magnifica resort in Nosara, Costa Rica, doesn't participate in Black Friday sales as it never had trouble filling its few rooms. But this year is different. While Christmas and New Year's bookings are strong, periods before and after are weak, inspiring the 25-percent-off sale on Nov. 27 through Dec. 6, with […]

Read More
November 24, 2020
Apple security chief accused of trying to bribe sheriff's office

Apple's head of global security was indicted on Monday for allegedly trying to bribe a California sheriff's office with the promise of 200 iPads in exchange for concealed-weapon permits for company employees. In addition to Thomas Moyer, 50, the tech-giant's chief security officer, two officers with the Santa Clara County Sheriff's Office were also charged […]

Read More
November 24, 2020
Who Will Miss the Coins When They're Gone?

They gather unloved in jars and under cushions, unearthed only when laundry needs doing. They rattle in coat pockets, music to some ears and a nuisance to others. They sink into fountains and lurk in wells, a fortune in wishes but a nightmare to sort and count. Coins are everywhere until they're nowhere, and at […]

Read More
November 24, 2020
Trump deemphasizes GSA move to make federal resources available to Biden transition

Good morning and welcome to Fox News First. Here's what you need to know as you start your day ... Trump downplays GSA move to ascertain Biden as 'apparent winner'President Trump took to Twitter late Monday to respond to those who see the General Services Administration's decision to make federal resources available to Joe Biden's […]

Read More
crossmenuchevron-down