Apple Cuts App Store Fees

Significant changes are occurring with App Store pricing, Duolingo has secured additional investment, and Pfizer has published updated data regarding its vaccine. Here's your Daily Crunch for November 18, 2020.

Key development: Apple adjusts App Store commissions

Apple is reducing its standard 30% commission on App Store transactions to 15% for select developers—namely, those earning under $1 million annually after Apple’s cut.

The company anticipates this change will affect the “majority” of apps, with specific eligibility criteria to be announced in December, prior to the January 1 implementation date. Apple has been subject to growing criticism regarding these fees, notably from Epic Games, whose founder Tim Sweeney likened their legal dispute to a “fight for fundamental rights,” and the matter has also been addressed in antitrust proceedings.

“The App Store has served as an unparalleled catalyst for economic expansion, generating countless employment opportunities and providing an accessible entrepreneurial path for anyone with a compelling concept,” stated Apple CEO Tim Cook. “Our new initiative builds upon this momentum—empowering developers to finance their ventures, embrace innovation, grow their teams, and continue developing applications that enhance people’s lives.”

Major tech companies

Donald Trump will no longer have special protections on Twitter following his time in office — Twitter has previously acknowledged a different standard for the President, but CEO Jack Dorsey confirmed this will change once he leaves office.

Google Pay receives a substantial redesign with increased focus on personal financial management — The update retains all existing features while also steering the service in a new direction.

Facebook introduces E.gg, an experimental application for creating digital collages — The company characterizes the app as a “digital zine creator” and a “GIF collage experience.”

Startups, funding, and venture capital

Marissa Mayer’s startup unveils its inaugural product, Sunshine Contacts — The application is intended to streamline the organization, updating, and sharing of contact details.

The language-learning platform Duolingo confirms a $35 million funding round, resulting in a $2.4 billion valuation — This represents a considerable increase from Duolingo’s $1.65 billion valuation earlier in the year, when General Atlantic invested $10 million.

Quid secures $320 million to provide loans to startup employees, utilizing their equity as collateral — Quid has already extended loans to personnel at 24 companies, including Unity, Palantir, Crowdstrike, Uber, and Lyft.

Insights and analysis from Extra Crunch

Lessons from China’s fintech landscape — In China, mobile phone-based digital payments are widespread, and there is significant innovation in areas like lending, investments, and digital currencies.

Analyzing Robinhood’s Q3 performance ahead of a potential 2021 IPO — A TechCrunch analysis of the company’s disclosures indicates a modest increase in Robinhood’s payment for order flow during Q3.

Dear Sophie: Can a co-founder with an H-1B visa own a Delaware C Corp? — The latest installment of attorney Sophie Alcorn’s column addresses immigration-related questions concerning employment at tech companies.

(Please remember: Extra Crunch is our subscription service, dedicated to making startup information more accessible. You can subscribe here.)

Other news

Pfizer announces its COVID-19 vaccine demonstrates 95% efficacy in final clinical trial results — This is a higher efficacy rate than previously reported by Pfizer.

President Trump dismisses Chris Krebs, the top US cybersecurity official, for refuting false claims about the election — Last week, Krebs’ agency issued a statement affirming that no voting system experienced vote deletion, alteration, or compromise.

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