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Apple slashes App Store fees for Chinese developers

According to Reuters, Apple announced on Thursday that it will reduce the commission fees it charges on transactions through its App Store in mainland China marking a significant development for Chinese app developers in one of the company’s largest global markets.

Under the new policy, commission fees on in-app purchases and paid transactions will drop from 30 percent to 25 percent, effective Sunday.

Developers enrolled in Apple’s small business and mini-app partner programmes will see their commission reduced from 15 percent to 12 percent.

“Mini apps” refer to lightweight applications that operate within larger platforms such as WeChat developed by Tencent. The policy shift is expected to benefit major Chinese technology companies, including ByteDance, the parent company of TikTok, whose ecosystems host numerous third-party mini-applications.

Chinese state media estimates that the reduction could save domestic developers more than 6 billion yuan (approximately $873 million) annually in operational costs.

The state-run publication Economic Daily described the move as a victory for both developers and digital consumers.

The report suggested the adjustment could lead to lower prices for digital services, including membership subscriptions, gaming purchases live-streaming tips, and mini-program transactions. Consumers may collectively save nearly 1 billion yuan each year as a result.

Apple’s commission structure often referred to globally as the “Apple Tax” has faced mounting scrutiny from regulators around the world. In 2024 the European Union introduced legislation requiring Apple to lower App Store commissions to between 10 and 17 percent for developers within the region. In the United States, Apple has also allowed alternative payment options for in-app transactions.

Rich Bishop, founder of the advisory firm AppInChina, told Reuters that Apple had been in discussions with Chinese authorities, including the country’s IT ministry, and may have faced pressure to reduce its commission rates.

The new fee structure will come into effect on World Consumer Rights Day, a date when Chinese state media often highlight consumer-rights issues involving domestic and international companies.

Apple previously came under scrutiny during the campaign in 2013, when its after-sales service policies were criticised by the state broadcaster China Central Television, prompting the company to issue a public apology.

Industry analysts suggest that Chinese regulators may further tighten oversight of foreign apps operating in the country and could eventually require Apple to process App Store revenues within China rather than overseas.

The company has previously removed certain applications including Virtual Private Network services from its China App Store following requests from Chinese internet regulators.

Many users and foreign businesses rely on such tools to access websites restricted under China’s internet censorship policies.

According to Reuters, China’s antitrust regulator has been considering a formal investigation into Apple’s App Store policies, while consumers filed a complaint regarding the company’s fee structure last October.

The fee reduction will also apply to international developers with applications listed on the China App Store. For example, the popular language-learning platform Duolingo generates around $50 million annually from the Chinese market and is expected to benefit significantly from the new commission rates.

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