The concession announced Wednesday will lower Apple’s commissions for in-app subscriptions and other purchases from the 30% rate that has been in place since 2008 to 15%, effective Jan. 1. But the discount will only apply to developers with app store revenue up to $1 million annually — a threshold that excludes the makers of some of the most popular apps downloaded on iPhones, iPads and other Apple devices.
That group includes two of Apple’s fiercest critics, music streaming service Spotify, and Epic, the maker of the popular Fortnite video game.
Both those companies have helped spur increasing scrutiny of Apple’s app store practices among lawmakers and regulators in the U.S. and Europe. Apple sells music streaming and video services that have been helping to offset a slowdown in iPhone revenue in recent years.
The app store commissions feed Apple’s services division, which saw its revenue climb 16% to nearly $54 billion during the company’s last fiscal year ending in September. Only iPhone sales generate more revenue for Apple than services.
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AUSTRALIA SHOULD DELAY SOCIAL MEDIA BAN FOR CHILDREN UNDER 16. BIG TECH SAYS
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FEDERAL PROSECUTORS SEEK RECORDS FROM COMPANY THAT DEPLOYED AI WEAPONS SCANNER ON NYC SUBWAY
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RANSOMWARE ATTACK ON SOFTWARE SUPPLIER DISRUPTS OPERATIONS FOR STARBUCKS AND OTHER RETAILERS
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