Apple Finally Capitulates After Pressure from China, Here's the Outcome
Apple has finally capitulated by choosing to reduce commission charges at the Apple App Store in the Chinese market. The measure was undertaken following pressure from regulators in one of the largest markets for the American technology company.
In an official statement, Apple stated that commission charges for in-app purchases and paid transactions will be reduced to 25% from the previous 30%. The policy came into effect on Sunday.
Additionally, commissions for developers enrolled in Apple’s small business programme as well as the mini apps partner programme have also been lowered to 12% from the previous 15%.
Mini apps are small applications that run within large platforms such as WeChat, owned by Tencent. That platform, together with applications owned by ByteDance such as TikTok, serve as home to many third-party applications in China.
Chinese government media, the Economic Daily, described the commission reduction as a victory for developers and digital consumers in the country.
“This adjustment will enhance consumer choice and information transparency,” the media report stated, as cited by Reuters.
The Economic Daily also noted that the premium pricing of digital services in the iOS ecosystem will gradually disappear. Consequently, subscription fees, in-game purchases, live streaming donations and mini programmes are estimated to decline in price.
Consumer savings are estimated to reach nearly 1 billion yuan annually.
Apple’s 30% commission, often referred to as “Apple Tax”, has long been a focal point of scrutiny by regulators across various countries.
The European Union, for instance, forced Apple in 2024 to reduce commissions to approximately 10% to 17% for developers. In the United States, Apple has already permitted alternative payment methods for in-app transactions.
Rich Bishop, founder of AppInChina, stated that Apple had previously held discussions with China’s Ministry of Information Technology and other government bodies.
“In the case of China, they have spoken with the Ministry of IT and other departments, and have been asked or pressured to lower their charges,” he said.
The policy also applies to international developers whose applications are available on the China App Store.
According to Bishop, the education application Duolingo alone generates approximately US$50 million per year from the Chinese market. With the commission reduction, application companies are expected to achieve significant cost savings.
“Duolingo, the education application with the highest revenue in China, generates approximately US$50 million per year from the Chinese market, and this policy will save them a considerable amount in costs,” Bishop stated.