Apple cuts App Store fees in China as regulatory pressure on ‘Apple tax’ grows

Apple Inc. said on Thursday it will lower the commission fees it collects from developers on its App Store in mainland China, marking a significant concession in one of the company’s largest markets.

The California-based company said its standard commission on in-app purchases and paid transactions will fall to 25% from 30%, with the change taking effect on Sunday.

The reduction applies to apps distributed through the China App Store for both iOS and iPadOS.

Apple is also lowering fees for developers in its small business and mini-apps partner programs. Commissions for these developers will drop to 12% from 15%.

The small-business program covers developers that generated less than $1 million in revenue during the previous year.

“Mini apps” refer to smaller applications that operate within larger platforms, such as Tencent Holdings Ltd.’s WeChat.

The change follows discussions between Apple and Chinese regulators.

According to Apple’s developer website, the company said the adjustment comes after “discussions with the Chinese regulator.”

Apple added that it remains committed to fair conditions for developers and to “always offering competitive App Store rates to developers distributing apps in China.”

The fee reduction also applies to international developers whose apps are distributed through the China App Store.

Pressure from regulators and scrutiny of the ‘Apple tax’

Apple’s long-standing 30% commission — often referred to as the “Apple tax” — has been a major focus of antitrust scrutiny globally.

Governments and regulators across several regions have pushed the company to loosen its control over app distribution and payments.

The European Union introduced legislation in 2024 that forced Apple to lower commissions to between 10% and 17% for developers.

In the United States, Apple now allows apps to direct users to alternative payment methods for in-app transactions.

The company has also introduced policy changes in other markets, including Japan, where it reduced commissions to 21% on some third-party in-app payments.

In China, however, the fee reduction appears to come amid regulatory pressure rather than a formal legislative mandate.

China’s antitrust regulator, the State Administration for Market Regulation, has reportedly been examining Apple’s App Store policies and fees.

A Bloomberg report said that officials had been holding discussions with Apple executives and app developers since 2024 regarding the issue.

Major savings for developers and super-app ecosystems

The decision is expected to deliver substantial savings for developers operating in China’s fast-growing mobile ecosystem.

According to a report from the state-owned Economic Daily, the reduction could save Chinese developers more than 6 billion yuan ($873 million) in operating costs each year.

The newspaper described the change as a benefit for both developers and consumers.

"This adjustment will ... improve consumption choices and information transparency," the Economic Daily said.

"The premium for digital goods and services on the iOS side will be gradually eliminated, and the prices of membership subscriptions, game recharges, live broadcast tips, mini programs and other scenarios are expected to decrease, which is expected to save consumers up to nearly 1 billion yuan per year."

The move is seen as a breakthrough for Chinese developers and operators of so-called super apps, including Tencent and TikTok owner ByteDance.

These platforms host large ecosystems of third-party mini apps that rely on Apple’s App Store distribution.

Apple’s move also comes at a sensitive moment.

The fee reduction will take effect on World Consumer Rights Day, when Chinese state media often highlight consumer protection issues.

Analysts say the change may also help Apple reduce regulatory risks in a market that remains crucial for the company’s long-term growth.