Apple starts cutting App Store fees for smaller developers

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Apple is giving some small iOS app developers a surprise Christmas present.

The iPhone maker has begun rolling out its lower App Store commission rates for some creators, slashing its fees on in-app purchases from 30 percent to 15 percent.

Apple had announced its plan to slash the rates for apps that pull in less than $1 million a year back in November, saying that the changes would go into effect on Jan. 1, but has been reaching out to developers early according to a Macrumors report.

The Cupertino, Calif. tech giant has framed the cuts, which it calls the “App Store Small Business Program,” as a way for smaller developers to “continue working to innovate and thrive during a period of unprecedented global economic challenge.

In its email to developers, Apple said that if a developer exceeds the $1 million threshold at some point in 2021, the standard 30 percent rate will apply for the rest of the year.

But the new fee structure arrives as Apple is accused by developers and politicians of exerting monopoly power over its App Store, which is the only way to get software onto its iPhones and iPads.



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