App Store Fee Cut Attracts Criticism From Major Developers Like Spotify and Epic

A number of industry players, including Spotify, Epic Games CEO Tim Sweeney, and Basecamp CTO David Heinemeier Hansson, have today criticized Apple's move to launch a new App Store Small Business Program that will halve App Store fees for small business owners and independent developers (via The Verge).

app store 15 percent feature

After Apple announced the new program, Spotify released a statement saying that it proved the ‌App Store‌ policies are "arbitrary and capricious."

Apple's anti-competitive behavior threatens all developers on iOS, and this latest move further demonstrates that their App Store policies are arbitrary and capricious. While we find their fees to be excessive and discriminatory, Apple's tying of its own payment system to the App Store and the communications restrictions it uses to punish developers who choose not to use it, put apps like Spotify at a significant disadvantage to their own competing service. Ensuring that the market remains competitive is a critical task. We hope that regulators will ignore Apple's "window dressing" and act with urgency to protect consumer choice, ensure fair competition, and create a level playing field for all.

Spotify has repeatedly sparred with Apple in recent years, accusing the company of anti-competitive behavior. The accusations peaked with Spotify's formal complaint to the European regulators that Apple used the ‌App Store‌ to deliberately disadvantage other app developers, which lead to an EU Commission antitrust investigation.

‌Epic Games‌ CEO Tim Sweeney also released a statement, arguing that Apple is "gerrymandering the community with a patchwork of special deals" by setting up the Small Business Program.

This would be something to celebrate were it not a calculated move by Apple to divide app creators and preserve their monopoly on stores and payments, again breaking the promise of treating all developers equally. By giving special 15 percent terms to select robber barons like Amazon, and now also to small indies, 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. But consumers will still pay inflated prices marked up by the Apple tax.

Apple and Epic have been embroiled in a legal battle since August, when Apple removed Fortnite from the ‌‌App Store‌‌ after ‌‌Epic Games‌‌ introduced a direct payment option in the app, defying the ‌‌App Store‌‌ rules. ‌‌Epic Games‌‌ promptly filed a lawsuit against Apple, accusing the company of anti-competitive actions.

Basecamp CTO David Heinemeier Hansson, who is also responsible for the "Hey" email app which Apple threatened to remove from the App Store in June for breaching its rules, shared a large number of tweets criticising Apple's decision to launch the program, saying that "Machiavelli would be so proud of Apple. Trying to split the ‌App Store‌ opposition with conditional charity concessions, they – a $2T conglomerate – get to paint any developer making more than $1m as greedy, always wanting more. As clever as its sick."

Hansson also said that the "only good thing" about "this cynical, Machiavellian ploy to split developers" is that "it shows they're sweating. Even if just a little."

In September, Spotify, ‌Epic Games‌, and Basecamp joined forces to form the "Coalition for App Fairness," which aims to highlight developer issues with Apple. The organization set out a number of demands, including the assertions that "no developer should be required to use an app store exclusively," "every developer should always have access to app stores," and "no developer should be required to pay unfair, unreasonable or discriminatory fees or revenue shares."

While Spotify, ‌Epic Games‌, and Hey have each taken issue with Apple's ‌App Store‌ policies in the past, research by app analytics firm Sensor Tower does highlight an interesting observation about Apple's Small Business Program. The research, cited by The New York Times, states that the ‌App Store‌ fee change "will affect roughly 98 percent of the companies that pay Apple a commission... But those developers accounted for less than 5 percent of ‌App Store‌ revenues last year..." This means that Apple is retaining its 30 percent commission on the two percent of companies that generate 95 percent of its ‌App Store‌ revenue.

Apple says that it expects the ‌‌App Store‌‌ Small Business Program to generate more digital commerce, support new jobs, and provide more funds for small businesses to invest back into their apps as they work to create software for Apple's users.

Popular Stories

iPhone Pocket Short

iPhone Pocket is Now Completely Sold Out Worldwide

Tuesday November 25, 2025 7:16 am PST by
Apple recently teamed up with Japanese fashion brand ISSEY MIYAKE to create the iPhone Pocket, a limited-edition knitted accessory designed to carry an iPhone. However, it is now completely sold out in all countries where it was released. iPhone Pocket became available to order on Apple's online store starting Friday, November 14, in the United States, France, China, Italy, Japan, Singapore, ...
Cyber Week Deals 2025

Best Cyber Week Apple Deals Include Big Discounts on AirPods, Apple Watch, and More

Sunday November 30, 2025 7:33 am PST by
Cyber Week is here, and you can find popular Apple products like AirPods, iPad, Apple Watch, and more at all-time low prices. In this article, the majority of the discounts will be found on Amazon. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. Specifically,...
Netflix Smaller 4

Netflix Kills Casting From Its Mobile App to Most Modern TVs

Monday December 1, 2025 4:36 am PST by
Netflix has quietly removed the ability to cast content from its mobile apps to most modern TVs and streaming devices, including newer Chromecast models and the Google TV Streamer. The change was first spotted by users on Reddit and confirmed in an updated Netflix support page (via Android Authority), which now states that the streaming service no longer supports casting from mobile devices...
studio display purple february

M5 iPad Pro Could Hint at New Studio Display Feature

Sunday November 30, 2025 10:30 am PST by
The updated specs of the M5 iPad Pro may point toward a major new feature for Apple's next-generation Studio Display expected in early 2026. Apple's latest iPad Pro debuted last month and contains one display-related change that stands out: it can now drive external monitors at up to 120Hz with Adaptive Sync. The feature should deliver lower latency, smoother motion, and fewer visual...
New Intel Logo

Apple and Intel Rumored to Partner on Mac Chips Again in a New Way

Friday November 28, 2025 7:33 am PST by
While all Macs are now powered by Apple's custom-designed chips, a new rumor claims that Apple may rekindle its partnership with Intel, albeit in a new and limited way. Apple supply chain analyst Ming-Chi Kuo today said Intel is expected to begin shipping Apple's lowest-end M-series chip as early as mid-2027. Kuo said Apple plans to utilize Intel's 18A process, which is the "earliest...
iphone black friday gold

The Best Black Friday iPhone Deals Still Available

Friday November 28, 2025 6:24 am PST by
Cellular carriers have always offered big savings on the newest iPhone models during the holidays, and Black Friday 2025 sales have kicked off at AT&T, Verizon, T-Mobile, and more. Right now we're tracking notable offers on the iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and iPhone Air. For even more savings, keep an eye on older models during the holiday shopping season. Note: MacRumors is...
Sad Siri Feature

Apple AI Chief John Giannandrea Retiring After Siri Delays

Monday December 1, 2025 2:16 pm PST by
Apple AI chief John Giannandrea is stepping down from his position and retiring in spring 2026, Apple announced today. Giannandrea will serve as an advisor between now and 2026, with former Microsoft AI researcher Amar Subramanya set to take over as vice president of AI. Subramanya will report to Apple engineering chief Craig Federighi, and will lead Apple Foundation Models, ML research, and ...
maxresdefault

The MacRumors Show: Apple's Big Plans for iPad Mini 8

Friday November 28, 2025 8:39 am PST by
On this week's episode of The MacRumors Show, we talk through the latest rumors about Apple's upcoming iPad mini 8. Subscribe to The MacRumors Show YouTube channel for more videos The next-generation version of the iPad mini is expected to feature an OLED display, as part of Apple's plan to expand the display technology across many more of its devices. Apple's first OLED device was the Apple...
maxresdefault

iPhone Fold: Launch, Pricing, and What to Expect From Apple's Foldable

Monday December 1, 2025 3:00 am PST by
Apple is expected to launch a new foldable iPhone next year, based on multiple rumors and credible sources. The long-awaited device has been rumored for years now, but signs increasingly suggest that 2026 could indeed be the year that Apple releases its first foldable device. Subscribe to the MacRumors YouTube channel for more videos. Below, we've collated an updated set of key details that ...

Top Rated Comments

Runs For Fun Avatar
66 months ago
How did I know Spotify would be whining about this?
Score: 52 Votes (Like | Disagree)
hansmoleman Avatar
66 months ago
What's that old saying... "Let no good deed go unpunished"? $150k for advertising, distribution, instant access to a gigantic customer base and payment processing on $1m in sales is a damn bargain, no matter how you slice it.

Apple could be standing on a street corner handing out $100 bills and these people would complain.
Score: 45 Votes (Like | Disagree)
dannyyankou Avatar
66 months ago
Get out of here Epic. You never cared about the small developer. You only cared about your own profits.
Score: 37 Votes (Like | Disagree)
archer75 Avatar
66 months ago
blah blah blah. Every online store and physical store charges a 30% fee. Quit your whining.
Score: 32 Votes (Like | Disagree)
eulslix Avatar
66 months ago
Ok that's just getting ridiculous. Before that, I kind of got Epics point, that small developers get squeezed out of their critical profit margins. But now that EXACTLY that point has been addressed, they're still complaining? Shows where the real priorities are...
Score: 25 Votes (Like | Disagree)
itsmeaustend Avatar
66 months ago
Cry me a river. I feel no sympathy for multi-national corporations.

however, I can totally get behind a fee cut for small businesses.
Score: 24 Votes (Like | Disagree)