A apple presented the results of an independent study in which 71% revenue growth from small developers in app store between 2020 and 2022. These results come amid regulatory pressure on Apple to change the way it distributes apps, including opening iOS to other app stores.

The tech giant defines small developers, such as those who earn less than $1 million a year from the App Store and have less than 1 million downloads of all their apps in a given year.. In 2020, the company reduced the commission for these developers from 30% to 15%.

The study says that in 2022, more than 90% of developers on the App Store were small. Many independent developers that have joined the ecosystem are based in Europe, accounting for 25% of new small developers. China accounted for 23% of new developers, and 14% of new developer registrations came from the US. Other regions such as South Korea, India and Brazil contributed 35% of new developers joining the App Store ecosystem.

The report highlights the reach of the App Store, which is available in 175 countries. According to the study, 40% of small business app downloads are from countries outside their home region, and 80% of these businesses have their apps in multiple stores.

According to the study, some developers are increasing their earnings at a rapid pace. For example, 40% of developers who were previously considered “small developers” but fell out of this category because they made over $1 million in 2022, weren’t in the App Store, or had less than $10,000 in revenue just five years ago.

With this study, Apple wants to emphasize that its platform helps small businesses and developers in the face of regulatory scrutiny. Earlier this year, the company released a report that said it had paid out $320 billion to developers since the App Store was created in 2008.

Apple still struggles with regulation

However, the authorities of different countries are studying the monopoly of Apple (and Google) to distribute applications on their respective platforms. In February, the Biden administration said the two tech giants were stifling competition through their app stores. According to the government, these companies have created a “sub-optimal” environment for competition, and their policies in these stores have “created unnecessary barriers and costs for app developers, from access fees to feature restrictions that favor some apps over others.”

The company is also reportedly preparing to allow installation of apps outside the App Store on the iPhone, thanks in large part to the European Union’s Digital Market Act (DMA), which will take effect in 2024.

The move was seen as a response to regulators’ concerns about Apple’s monopoly on the app distribution market. Authorities and governments around the world have raised questions about the company’s anti-competitive practices and lack of options for both developers and consumers.

Despite criticism and pressure from regulators, Apple is highlighting the benefits that the App Store brings to smaller developers. A study published by the company shows a significant increase in the income of these developers over the past two years. Fee cuts for developers making less than $1 million a year also demonstrate Apple’s commitment to supporting the app development ecosystem.

The App Store’s global presence in 175 countries and the fact that 40% of small business app downloads come from outside their home regions highlight the importance of the platform as a comprehensive and accessible distribution channel.

As Apple seeks to highlight the benefits of the App Store, authorities continue to closely monitor its practices and policies. The openness to installing apps outside the store and growing regulatory pressure indicate that the app distribution market may be undergoing significant changes, affecting not only Apple, but also other companies in the sector.

As the talk of competition and equal access to app markets continues, the technology industry is facing an ever-changing landscape in which developers and consumers are looking for a more open and competitive environment. It remains to be seen how Apple and other companies will adapt to these requirements and current regulations.

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Source: TechCrunch

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