Apple lowers App Store commission fees in China after government pressure

Apple said it will cut App Store commission fees in mainland China to 25% from 30%, with small business and mini app rates falling to 12% from 15%, effective Sunday; Chinese state media and industry observers reported the move followed pressure from regulators.

Apple announced a reduction in the commission fees it collects from its App Store in mainland China, saying the change will take effect on Sunday. Standard in-app purchase and paid transaction fees will be lowered from 30% to 25%, while rates for Apple’s small business and mini app partner programmes will fall from 15% to 12%. The announcement has been presented in Chinese media and by observers as a response to pressure from regulators. The change comes into force on World Consumer Rights Day. Key details: - Standard commissions for in-app purchases and paid transactions will be reduced to 25% from 30%. - Developers in Apple’s small business and mini app partner programmes will see in-app purchase fees cut to 12% from 15%. - "Mini apps" operate within larger platforms such as Tencent’s WeChat; the change affects developers that supply apps inside such super apps. - The state-owned Economic Daily reported the cut could save Chinese developers more than 6 billion yuan annually and suggested consumer prices for some digital services could fall by as much as nearly 1 billion yuan per year. - Industry observers said Apple had been in discussions with China’s IT ministry and other departments and had been requested or pressured to lower fees; the timing coincides with World Consumer Rights Day. Summary: The fee reductions are described in state media and by industry commentators as a win for Chinese developers and digital consumers, and they are scheduled to take effect on Sunday. Undetermined at this time is whether further regulatory or industry steps will follow the implementation of the new fee levels.