Apple’s Big App Store Price Cut Isn't Nearly Enough
Lowering the commissions it charges small developers doesn’t address broader issues over the smartphone giant’s market power and won’t appease critics.
Don't be fooled: Apple’s power over the app economy remains.
Photographer: Silas Stein/picture alliance via Getty Images
Apple Inc. has seemingly made a key concession in the battle over the smartphone giant’s market power and treatment of developers who want a place on the company’s App Store and devices. Seemingly is the key word here.
Starting next year, the iPhone maker will reduce to 15% from 30% the App Store commission rate it charges developers that earn $1 million or less a year, as well as those new to the store, Apple said Wednesday. While the announcement is certainly good news for smaller, independent developers, it still doesn’t address broader issues about Apple’s excessive power and abusive practices and likely won’t appease the company’s critics and regulators.