Apple to lower App Store fees for smaller developers

Apple Inc on Wednesday said it plans to start a program to lower its App Store commissions for software developers who make $1 million or less in proceeds each year from the store.

Apple takes a 30% cut of most purchases made on the App Store, although the commission drops to 15% for subscriptions that remain active for more than a year.

Apple said Wednesday developers will automatically get the lower 15% rate if they generate $1 million or less in proceeds – defined as the portion of App Store purchases that the developer keeps – in a calendar year.