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【AAPL】Apple Cuts App Store Commission Rate in Mainland China; Tencent: The Industry Is Uplifted
Apple (U.S.: AAPL) reduces the “Apple Tax” and lowers the commission rate for the China App Store, decreasing the fees charged to Chinese app developers for software and in-app purchases. After communication with Chinese regulatory authorities, Apple will adjust the commission rates for the mainland China App Store’s iOS and iPadOS starting March 15. The standard commission rate for Apple in-app purchases and paid apps will be reduced from 30% to 25%.
For eligible transactions under the Small Business Program and Mini Program Partner Program, as well as the automatic renewal subscription commission rate after the first year, the rate will change from 15% to 12%.
Tencent (00700) stated that, under the strong promotion of regulatory authorities, Apple has adjusted its App Store commission policy in China, which has excited the industry. This change reflects a response to and respect for the voices of Chinese users and developers, and is a positive signal for the healthy development of the digital ecosystem. For Tencent and all developers, this will create a more open, win-win platform environment, conducive to stimulating innovation and promoting the continuous prosperity of the tech application ecosystem. As a result, they will continue to work with partners to provide users with better products and services.
Apple said it will offer fair and transparent terms to all developers and will always provide competitive app store rates for developers distributing apps in China, which will not be higher than the overall rates in other markets.
Previously, Apple adjusted its commission structure in the EU to appease regulators, and in the U.S., it allowed apps to direct users to web pages for in-app purchases, bypassing its payment system. Apple also made significant adjustments in response to Japanese regulatory requirements.
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