Apple announced on Wednesday, November 18 a new program that would cut commissions from paid apps and in-app purchases of smaller businesses and independent developers down to 15% from the usual 30% rate.

Apple said the initiative, called the App Store Small Business Program, will launch on January 1, 2021. “Developers can qualify for the program and a reduced 15% commission if they earned up to $1 million in proceeds during the previous calendar year,” Apple added.

While further detals are expected to be released in early December, Apple’s outlined the basics in 3 bullet points:

• Existing developers who made up to $1 million in 2020 for all of their apps, as well as developers new to the App Store, can qualify for the program and the reduced commission.
• If a participating developer surpasses the $1 million threshold, the standard commission rate will apply for the remainder of the year.
• If a developer’s business falls below the $1 million threshold in a future calendar year, they can requalify for the 15 percent commission the year after.

The mainstream commission rate of 30% will still apply for apps “selling digital goods and services and making more than $1 million in proceeds, defined as a developer’s post-commission earnings,” Apple added.

The new push to lower commission rates will likely be a boon for new app makers and apps on that fulfill niche needs for Apple users.

That said, it also represents a way in which Apple can make strides towards getting back into the good graces of app developers who likely feel overburdened – to put it lightly – by Apple’s 30% cut of revenue and seemingly overt power over the earning strength of apps in the space. – Rappler.com