Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      A hidden charge in your electricity bill is being scrapped - Kgosientsho Ramokgopa

      A hidden charge in your electricity bill is being scrapped

      19 August 2026
      Finally, some good news on memory-chip prices - Xiaomi

      Finally, some good news on memory-chip prices

      19 August 2026
      China can now land rocket boosters, just like SpaceX

      China can now land rocket boosters, just like SpaceX

      19 August 2026
      No partner, no funding: Post Office wants out of rescue anyway

      No partner, no funding: Post Office wants out of rescue anyway

      18 August 2026
      Your iPhone is about to get a massive upgrade

      Your iPhone is about to get a massive upgrade

      18 August 2026
    • World
      Russia building its own Starlink - and faster than expected - Vadym Skibitskyi

      Russia building its own Starlink – and faster than expected

      11 August 2026
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
      IBM shares crash 25% as AI upends software spending - Arvind Krishna

      IBM shares crash 25% as AI upends software spending

      15 July 2026
      Jony Ive's first OpenAI device: an AI smart speaker - Jony Ive and Sam Altman

      Jony Ive’s first OpenAI device: an AI smart speaker

      15 July 2026
      Stripe, Advent in talks to buy PayPal for $53-billion

      Stripe, Advent in talks to buy PayPal for $53-billion

      15 July 2026
    • In-depth
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      Meet the CIO | Discovery's Derek Wilcocks on AI, guardrails and growth

      Meet the CIO | Derek Wilcocks on how AI personalised Vitality

      13 August 2026
      TCS | Money just became native to the internet - Steven Boykey Sidley

      TCS | Money just became native to the internet – Steven Boykey Sidley

      12 August 2026
      TCS+ | Specops' Darren James on continuous trust in an AI world

      TCS+ | Specops’ Darren James on continuous trust in an AI world

      7 August 2026
      TCS+ | How AI is turning hardware into a subscription service - Shane van der Merwe Merchant West

      TCS+ | How AI is turning hardware into a subscription service

      6 August 2026
      TCS+ | Why South African workers must become supervisors of digital labour - Accelera Digital Group Cliff de Wit

      TCS+ | Why South African workers must become supervisors of digital labour

      31 July 2026
    • Opinion
      The author, Jannie van Zyl

      Selling vapour is corporate suicide in slow motion

      16 July 2026
      Brazil's online gambling crackdown is a lesson for South Africa

      How Amazon outmanoeuvred Starlink in South Africa

      15 July 2026
      The Popia problem with agentic AI - Herman Haasbroek

      The Popia problem with agentic AI

      14 July 2026
      The author, Fanie van Rooyen

      South Africa can still catch the AI wave – here’s how

      7 July 2026
      The author, Fanie van Rooyen

      The AI utopia South Africa can’t afford

      1 July 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » Apple’s big App Store price cut isn’t nearly enough

    Apple’s big App Store price cut isn’t nearly enough

    By Agency Staff19 November 2020
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Zhiyue Xu/Unsplash.com

    Apple 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 US$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.

    First, the new terms only cover the smallest developers, thereby maintaining Apple’s power over the app economy. The App Store’s biggest critics — including Spotify Technology and Match Group — will see no benefit. To illustrate how insignificant it will be for overall revenue, app research firm Sensor Tower said less that 5% of Apple’s App Store sales last year came from developers that generated less than $1-million.

    The announcement does nothing to address the questions about Apple’s anticompetitive practices that aren’t related to its fees

    More importantly, the announcement does nothing to address the questions about Apple’s anticompetitive practices that aren’t related to its fees. For example, Fortnite-maker Epic Games is suing the smartphone maker for the right to use its own payment system and its own store on devices that use Apple’s iOS operating system. And the European Union has opened an investigation into Apple’s rules restricting developers from informing users about alternative purchasing methods.

    Antitrust efforts

    Even more serious antitrust efforts are under way that may have larger financial consequences for Apple. In October, a US house antitrust committee report alleged that Apple abused the monopoly power of its App Store by giving preferential treatment to its own products, harming industry innovation and competitors. That same month, the US department of justice’s antitrust division said the distribution agreement under which Google pays Apple billions of dollars annually to make its search engine the default option on iPhones was exclusionary and violated antitrust laws. Again, Apple’s fee reduction doesn’t resolve these issues.

    Instead of trying to score points with token gestures, what should Apple do next? Here are some ideas.

    Apple should proactively offer fairer terms to all developers or risk far worse remedies from governments. The company should abandon restrictions forbidding links to external websites, offer clearer app approval guidelines, provide no special loopholes for powerful companies such as Amazon.com, and level the playing field by widening the base of apps that must pay fees beyond digital content and services. All these ideas still stand and would do far more to placate the real anticompetitive concerns.

    Apple’s latest move does signal it is feeling the heat from rising scrutiny and criticism. Acting proactively is the right response, but it needs to do more.  — By Tae Kim, (c) 2020 Bloomberg LP

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Amazon Apple Epic Games Fortnite Google Match Group Spotify top
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleAll the bitcoin lingo you need to know as crypto hots up again
    Next Article Gianfranco Campetti, driving force behind SA’s new electrical plug standard, dies

    Related Posts

    Your iPhone is about to get a massive upgrade

    Your iPhone is about to get a massive upgrade

    18 August 2026
    Inside Standard Bank's multi-model AI bet - Margaret Nienaber

    Inside Standard Bank’s multi-model AI bet

    17 August 2026
    TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

    TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

    14 August 2026
    Company News
    Paratus Rwanda marks first year with AfPIF opening reception

    Paratus Rwanda marks first year with AfPIF opening reception

    18 August 2026
    Digital sovereignty on the agenda at Africa Cybersecurity Indaba

    Digital sovereignty on the agenda at Africa Cybersecurity Indaba

    18 August 2026
    Avast, AVG and Norton in 2026: smarter security for a new generation of threats

    Avast, AVG and Norton in 2026: smarter security for a new generation of threats

    17 August 2026
    Opinion
    The author, Jannie van Zyl

    Selling vapour is corporate suicide in slow motion

    16 July 2026
    Brazil's online gambling crackdown is a lesson for South Africa

    How Amazon outmanoeuvred Starlink in South Africa

    15 July 2026
    The Popia problem with agentic AI - Herman Haasbroek

    The Popia problem with agentic AI

    14 July 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    A hidden charge in your electricity bill is being scrapped - Kgosientsho Ramokgopa

    A hidden charge in your electricity bill is being scrapped

    19 August 2026
    Finally, some good news on memory-chip prices - Xiaomi

    Finally, some good news on memory-chip prices

    19 August 2026
    China can now land rocket boosters, just like SpaceX

    China can now land rocket boosters, just like SpaceX

    19 August 2026
    No partner, no funding: Post Office wants out of rescue anyway

    No partner, no funding: Post Office wants out of rescue anyway

    18 August 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}