Get the latest market trends in your inbox

Stay on top of the latest market trends and economic insights with the Axios Markets newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Aïda Amer/Axios

While many developers will benefit from Apple's move Wednesday to cut commissions for companies earning less than $1 million per year in App Store revenue, the company's critics derided the move as a cynical attempt to distract from what they see as Apple's broader anticompetitive business practices.

Why it matters: Apple's move appears designed to appease concerns from critics and regulators, but it's unclear how far it will go to assuage them. Thus far, not very.

Between the lines: The vast majority of developers make less than $1 million per year and will benefit from the change. But most of Apple's revenue comes from a small number of large developers.

  • That means most consumers will still be absorbing Apple's higher 30% rate for the vast majority of paid downloads and in-app purchases.
  • Loup Ventures' Gene Munster estimates that the move will cut Apple's commission revenue for fiscal 2021 from $15.8 billion to $14.2 billion, about 0.5% of the company's total estimated revenue.

The big picture: Most of those who spoke out Wednesday have previously criticized Apple over its App Store practices, including Spotify, Match Group, Basecamp — and of course Fortnite creator Epic Games, which is suing Apple (and Google) over mobile app store commissions.

  • Speaking at the New York Times' DealBook online summit, Epic CEO Tim Sweeney called his company's effort an act of civil disobedience: "When a contract goes outside the bounds of the law, as Apple is doing, and has such a negative and pervasive impact on society, it's everybody's duty to fight."
  • As for Apple's rate cut, Sweeney said it was "a fantastic change" for many small developers. "Who it's not awesome for is consumers," he said.

What they're saying:

  • Basecamp CTO David Heinemeier Hansson: "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 it's sick."
  • Coalition for App Fairness: "Apple's announcement doesn't even begin to rectify the abuse and monopoly behavior developers have to endure in the App Store. We need fundamental change."

The other side: "The reduced commission for small businesses will allow them to put additional resources towards scaling up and innovating new products and services," said ACT — The App Association president Morgan Reed.

Go deeper

Dec 1, 2020 - Technology

Facebook, Google push deals despite antitrust scrutiny

Illustration: Eniola Odetunde/Axios

Facebook announced Monday that it has purchased a customer service chatbot startup called Kustomer. The app reportedly cost Facebook $1 billion, the same amount it paid for Instagram in 2012.

Why it matters: The deal is the latest sign that the world's biggest tech companies, despite facing enormous antitrust scrutiny globally, will not stop buying up other companies.
.

22 mins ago - Sports

The end of COVID’s grip on sports may be in sight

Illustration: Aïda Amer/Axios

Packed stadiums and a more normal fan experience could return by late 2021, NIAID director Anthony Fauci said yesterday.

Why it matters: If Fauci's prediction comes true, it could save countless programs from going extinct next year.

Trump's 2024 begins

Trump speaking to reporters in the White House on Thanksgiving. Photo: Erin Schaff - Pool/Getty Images

President Trump is likely to announce he'll run again in 2024, perhaps before this term even ends, sources tell Axios.

Why it matters: Trump has already set in motion two important strategies to stay relevant and freeze out other Republican rivals.