Apple Cuts App Store Commission in China Amid Competition From Domestic Ecosystems

Apple is reducing its commission rates for developers on the App Store in China, the company announced on Thursday. Following discussions with local regulators, the Cupertino-based tech giant's revised structure will lower the standard commission and also reduce fees for developers enrolled in certain programmes, including the App Store Small Business Program. The move comes amid growing competition from domestic app ecosystems like Xiaomi, along with increasing regulatory scrutiny in China.

Lower App Store Commission Rates in China

On its developer page, Apple mentioned that beginning March 15, a commission rate of 25 percent will be applicable on standard Apple In-App Purchase transactions and paid app downloads on the China mainland App Store, down from the current 30 percent. This is said to apply to purchases made through Apple's in-app payment system across iPhone and iPad devices.

The tech giant will also lower commissions for developers who qualify for specific programmes. For example, the fee for transactions under the App Store Small Business Program and the Mini Apps Partner Program currently stands at 15 percent. Following the move, it will be reduced to 12 percent.

A similar 12 percent fee will be applicable on auto-renewing subscriptions after the first year, Apple said. Developers are currently charged a reduced commission for subscription renewals beyond the initial year, and the new change lowers that fee further. The company further explained that developers do not need to sign updated terms by March 15 to benefit from the revised commission structure.

Instead, the reduced rates will be automatically applied to eligible transactions once the changes take effect.

Apple said that the adjustments are part of its efforts to ensure that iOS and iPadOS remain an attractive ecosystem for developers in China. The iPhone maker aims to maintain fair and transparent policies while keeping App Store commission rates competitive with those offered in other markets.

In a similar move, notably, Google also recently announced updates to developer fees and billing policies in the broader Android ecosystem. It rolled out expanded billing options that allow developers to offer alternative payment systems alongside Google Play's billing service in certain markets. It also took steps to improve access for third-party app stores on Android devices.