Apple cuts App Store fees to 25% amid regulatory pressure in China

• Move expected to benefit Chinese developers and operators of super apps such as Tencent’s WeChat and ByteDance’s platforms that host numerous third-party mini apps.
• Cuts expected to save developers more than 6b yuan annually and lower prices for subscriptions, game top-ups, and live-stream tipping,

Apple said Thursday it will reduce App Store commission fees in mainland China, lowering the standard rate on in-app purchases and paid transactions to 25 per cent from 30 per cent starting Sunday, and cutting the rate for developers in its Small Business and mini apps partner programs to 12 per cent from 15 per cent.

The move follows pressure from Chinese authorities in Apple’s second-largest market and comes into effect on World Consumer Rights Day, a date often used by state media to spotlight consumer issues.

It is expected to benefit Chinese developers and operators of super apps such as Tencent’s WeChat and ByteDance’s platforms that host numerous third-party mini apps.

State media estimated the cuts could save developers more than 6 billion yuan annually and lower prices for subscriptions, game top-ups, and live-stream tipping, with potential consumer savings approaching 1 billion yuan per year, according to Economic Daily reporting cited alongside Apple’s announcement.

The adjustment also applies to international developers with apps distributed on the China App Store, potentially boosting margins for top-grossing titles such as Duolingo, according to industry consultants.

Analysts noted the change aligns with heightened global scrutiny of Apple’s “30 per cent tax,” after EU rules in 2024 drove lower commissions and the US enabled alternative in‑app payment methods.

Industry watchers said Chinese regulators may seek further measures, including requiring Apple to book China App Store revenues domestically and tightening oversight of foreign apps, following previous enforcement actions such as the removal of VPN apps at regulators’ request.