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Apple said on Thursday it will lower the commissions it charges developers on its App Store in mainland China, a significant shift for the iPhone maker following mounting pressure from Chinese regulators and technology firms operating in the country.
The company said its standard fee on paid downloads and inapp purchases will fall to 25% from 30% starting March 15, while smaller developers and creators of so called mini apps will see commissions reduced to 12% from 15%.
Mini apps are lightweight programs that run within larger platforms such as Tencent's WeChat and host a vast ecosystem of services ranging from games and shopping to payments and education tools used daily by millions of Chinese consumers.
Analysts estimate the reduction could save developers more than 6. billion yuan annually by lowering operating costs and narrowing the price premium often attached to digital subscriptions tips and gaming purchases made through Apple's mobile software marketplace.
State media outlets welcomed the move as a benefit for consumers, saying cheaper distribution costs may translate into lower prices for memberships livestream gifts and other digital services sold through iPhones and iPads in China.
The change follows months of discussions with regulators as authorities examined the company's longstanding commission structure, sometimes dubbed the Apple tax, which has also faced antitrust scrutiny in Europe and the United States.
Technology giants and platform operators including Tencent and ByteDance have argued that high app store fees squeeze margins for developers whose products often rely on super apps to reach large audiences inside China.
Apple said the updated rates will apply to both domestic and international developers distributing software on the China App Store and described the revision as part of ongoing efforts to keep its marketplace competitive and transparent.
The adjustment takes effect on Sunday, which coincides with World Consumer Rights Day, a date when Chinese media frequently spotlight companies accused of harming consumer interests or violating market rules.
Industry watchers say the decision may ease regulatory pressure in one of Apple's most important overseas markets while helping developers invest more in apps and services.
