BEIJING, China: Apple said it will reduce the commission fees it charges on its App Store in mainland China, a move expected to save developers hundreds of millions of dollars annually after pressure from regulators in the company's second-largest market.

The California-based technology company said fees on in-app purchases and paid transactions will fall to 25 percent from 30 percent starting Sunday. Developers participating in Apple's small business and mini apps partner programmes will see commissions reduced from 15 percent to 12 percent.

"Mini apps" are small applications that run within larger platforms, such as Tencent's WeChat.

The reduction marks a significant change for China's app ecosystem, benefiting major technology firms such as Tencent and ByteDance, whose platforms host numerous smaller applications created by third-party developers.

Chinese state-owned newspaper Economic Daily said the change could save developers more than 6 billion yuan (US$873 million) each year, describing the move as a gain for the country's digital economy and consumers.

"This adjustment will ... improve consumption choices and information transparency," the newspaper 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."

Pressure From Regulators

Apple's App Store commissions — often referred to by critics as the "Apple Tax" — have faced increasing scrutiny from regulators around the world.

In China, discussions between Apple and government agencies appear to have played a role in the decision. "In China's case, (Apple) has been talking with the IT ministry and other departments, and has been requested or pressured to reduce their fees," said Rich Bishop, founder of AppInChina, a consultancy that helps foreign software developers launch products in the Chinese market.

The new fee structure will also apply to international developers whose applications are available on the China App Store.

Apple has already faced regulatory pressure elsewhere. The European Union introduced legislation in 2024 requiring the company to cut developer commissions between 10 percent and 17 percent. In the United States, Apple now allows some alternative payment options for in-app transactions.

China's Regulatory Environment

The timing of Apple's announcement coincides with World Consumer Rights Day on Sunday, when Chinese state media often highlight complaints involving both domestic and foreign companies.

Apple itself was targeted during the 2013 campaign, when state broadcaster CCTV criticised its after-sales service practices, prompting the company to issue a public apology.

Regulatory oversight of digital platforms in China could tighten further. Bishop said authorities may eventually require Apple to collect App Store revenues in China rather than overseas, and to impose stricter rules on foreign applications operating in the country.

Apple has previously removed apps such as virtual private network (VPN) apps from its China App Store at the request of internet regulators.

VPN services allow users to mask their devices' location by assigning them a different digital address, thereby enabling access to foreign websites blocked by China's strict internet censorship system.

Chinese regulators have already signaled broader scrutiny of Apple's practices. Bloomberg News reported last year that the country's antitrust regulator was considering an investigation into Apple's App Store policies. In October, Chinese consumers filed an antitrust complaint against the company over its app commission structure.

According to Bishop, the changes could provide meaningful savings for major app developers operating in China. "Duolingo, the top-grossing education app in China, makes about $50 million a year from the Chinese market, and this will be saving them a decent amount of money," he said.