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1495090cookie-checkApple Announces Percentage Structure for Small Businesses
News
19 November 2020

Apple Announces Percentage Structure for Small Businesses

Apple has made headlines with the announcement of two significant changes coming to their Appstore. Come January, Apple will launch a small business program that will implement a new percentage program for its Appstore. Apple’s CEO issued the following statement with the announcement of the new program.

“Small businesses are the backbone of our global economy and the beating heart of innovation and opportunity in communities around the world. We’re launching this program to help small business owners write the next chapter of creativity and prosperity on the App Store, and to build the kind of quality apps our customers love. The App Store has been an engine of economic growth like none other, creating millions of new jobs and a pathway to entrepreneurship accessible to anyone with a great idea. Our new program carries that progress forward — helping developers fund their small businesses, take risks on new ideas, expand their teams, and continue to make apps that enrich people’s lives.”

Beyond the blatantly obvious PR speak, these changes were likely made to counter the growing public and political perception surrounding several ongoing anti-trust lawsuits. As Riley from the Boondocks put it, they’re not giving back. It’s just the cost of doing business.

[youtube https://www.youtube.com/watch?v=kSztKjYNb7Y]

This becomes more apparent when you consider how Tim Sweeney’s entire messaging has been how he is championing smaller businesses that will directly benefit from the new program. Precise details are reportedly being worked out and will be revealed in December. Apple News summed up the program as follows.

-Existing developers who made up to $1 million in 2020 for all of their apps, as well as developers new to the App Store, can qualify for the program and the reduced commission.

-If a participating developer surpasses the $1 million threshold, the standard commission rate will apply for the remainder of the year.

-If a developer’s business falls below the $1 million threshold in a future calendar year, they can requalify for the 15 percent commission the year after.

Tim Sweeney, CEO of Epic Games, the company currently locked in a legal battle with Apple, took to Twitter to take credit for this turnabout from Apple. In doing so, he has insinuated a comparison between himself and Martin Luther King Jr., Claiming his actions are akin to the civil rights movement.

https://platform.twitter.com/widgets.js

An hour later, when called on the absurdity of his claim, Sweeney walked it back instead, saying much could be learned from the civil rights movement on the issue.

https://platform.twitter.com/widgets.js

Sweeney doesn’t seem to appreciate that Jim Crow laws were a systemic set of government-enforced regulations that replaced three civil rights acts. Even if you disagreed with the law, you would face fines and potential jail time if you didn’t follow it. It was an issue that everyone came together to oppose because it was inescapable and unjust.

Martin Luther King Jr wanted a future where his children would be judged based on their character, not skin color. Tim Sweeney wants a future where he doesn’t have to pay a 30% tax to exist within Apple’s ecosystem.

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