Apple App Store ‘tax cut’ for small developers slammed by Spotify, Epic Games

Spotify blasted Apple’s ‘tax cut’, saying it illustrated the fact that the company’s App Store policies are ‘arbitrary and capricious’. — Dreamstime/TNS

LOS ANGELES: Apple announced that it will reduce its take of App Store fees for small app developers by half – to 15% – starting in January. The tech giant positioned the move as helping small businesses grow during difficult economic times. But Spotify and Epic Games, two of the biggest critics of Apple’s App Store, complained it was just window dressing designed to justify its unfair practices.

Under Apple’s new terms, starting Jan 1, 2021, existing developers who earned US$1mil (RM4.08mil) or less in 2020 for all of their apps will qualify for the 15% reduced commission. The App Store’s standard cut is 30%.