Apple to cut mini app commissions amid mounting regulatory pressure

• Reduction applies to developers who adopt Apple’s technology for declaring user age ranges, a system Apple touts as a privacy-friendly alternative amid debates over digital age verification.
• UK’s Competition Appeal Tribunal’s decision exposes Apple to possible damages exceeding £1b, with a parallel complaint also pending before European antitrust regulators.

Apple Inc. announced it will reduce App Store commissions for “mini apps” on its devices, marking a significant shift as regulatory scrutiny intensifies on the company’s digital marketplace practices worldwide.

Under the newly unveiled program, Apple will cut its commission rate from up to 30 per cent to 15 per cent for developers of mini apps—smaller applications hosted within larger “host apps,” such as games or specialised services.

The reduction applies to developers who adopt Apple’s technology for declaring user age ranges, a system Apple touts as a privacy-friendly alternative amid debates over digital age verification.

Mini apps are widely used in China, where platforms like Tencent Holdings’ WeChat and Alipay house a broad array of services, but the format is rapidly catching on in the US. OpenAI, for instance, revealed last month it will launch mini apps within its flagship ChatGPT app.

While Apple collects commissions directly from mini app sales, the split between host and mini app developers remains at the discretion of the apps involved.

Regulatory and legal hurdles

The commission reduction comes as Apple faces mounting legal and regulatory challenges in the US, Europe, and the UK. In a recent blow, the UK’s Competition Appeal Tribunal (CAT) denied Apple’s request to appeal last month’s ruling that found it abused dominance by imposing excessive commissions on developers.

The CAT decision exposes Apple to possible damages exceeding £1 billion ($1.3 billion), with a parallel complaint also pending before European antitrust regulators.

Apple has the option to seek an appeal before the UK’s Court of Appeal within 21 days. A company spokesperson criticised the CAT’s decision, saying it “takes a flawed view of the thriving and competitive app economy” and overlooks consumer and developer benefits.

Meanwhile, regulatory debates over age verification requirements continue. Multiple US states, alongside companies such as Meta Platforms, advocate for marketplace-level age checks. Apple argues that such mandates risk adult privacy and prefers its own age declaration system, which involves user-supplied age ranges and, for minors, adult approval.

Industry impact

Last month’s CAT decision calculated potential developer damages at £1.2 billion, incorporating overcharges between a typical 30 per cent Apple commission and the lower 17.5 per cent rate suggested by the tribunal. Developers were found to have passed half the excess cost on to consumers.

Rachael Kent, the British academic leading the UK case, stated, “This case has been a marathon, not a sprint, but we are one step closer to App Store users finally seeing their money rightfully returned to their pockets.”

Apple’s revised commission policy could set a precedent for further changes as global regulators scrutinise digital platform fees—potentially reshaping the economics of app distribution.