Apple will decrease the commission fees it collects from App Store transactions in mainland China, marking a substantial victory for Chinese developers. This decision comes in response to the perceived pressure from regulators in the U.S. technology behemoth’s second-largest market.
Beginning Sunday, the California-based company will reduce fees for in-app purchases and paid transactions to 25%, down from the present 30%, according to a statement on the company’s website. For developers in Apple’s small business and mini apps partner programmes, in-app purchase transaction fees will be decreased to 12% from the current rate of 15%.
The term ‘mini apps’ denotes smaller applications that function within a larger parent application, such as Tencent’s WeChat.
This change is a significant advancement for Chinese app developers, including operators of ‘super apps’ such as Tencent and ByteDance, the owner of TikTok. These platforms offer numerous smaller apps developed by third-party creators.
The reduction could potentially save Chinese developers more than 6 billion yuan (US$873 million) in annual operating costs. The measure has been presented as a win for Chinese digital consumers.
The adjustment will enhance consumer choices and information transparency. The premium for digital goods and services within iOS will gradually decrease, and prices for membership subscriptions, game charges, live broadcast tips, mini programs, and other scenarios are predicted to drop, potentially saving consumers up to nearly 1 billion yuan per year.
The 30% ‘Apple Tax’ continues to be a significant target of regulatory scrutiny worldwide. In the U.S., Apple permits users to pay in-app fees using alternative payment methods, while the EU implemented new legislation in 2024 that mandated Apple to reduce commission fees to a range of 10% to 17% for developers.
In China, Apple has been in discussion with the IT ministry and other departments about reducing their fees.
The reduced commission fees will take effect on World Consumer Rights Day, a day often marked by Chinese state media spotlighting domestic and foreign companies accused of consumer rights violations. Apple was targeted by this campaign in 2013, when its after-sales service was criticized, compelling the company to issue a public apology.
Going forward, the Chinese government may require Apple to collect App Store revenues within China, rather than overseas, and increase regulatory oversight of foreign apps published in China.
Previously, Apple has removed apps such as virtual private networks (VPNs) from its China App Store at the Chinese internet regulators’ request.
Apple’s fee reduction also extends to international developers whose apps are available on the China App Store. As an example, Duolingo, the highest-grossing education app in China, stands to save a substantial amount of money given its annual revenue from the Chinese market is around US$50 million.
What is the new commission fee rate for in-app purchases and paid transactions in mainland China?
The new commission fee rate in mainland China is being reduced to 25% from the previous 30%.
Who stands to benefit from these reduced commission fees?
Chinese developers and operators of ‘super apps’ such as Tencent and ByteDance, along with international developers with apps available in the China App Store, will benefit from these reduced commission fees.
When will the fee reduction take effect?
The fee reduction will take effect on World Consumer Rights Day, which falls on Sunday.
