Apple reduces App Store fees in China to ward off regulators

Apple is cutting App Store developer fees in China from March 15th, dropping its typical commission on purchases from 30 percent down to 25 percent. The decision was made following “discussions with the Chinese regulator,” according to Apple’s announcement, suggesting that the reduction aims to avoid regulatory intervention after China reportedly considered opening a formal investigation into the iPhone maker’s App Store fees and policies in early February.

The fee updates will apply to the App Store on both iOS and iPadOS. The commission rate for small businesses and mini app developers will also fall from 15 percent to 12 percent. This isn’t the first time that Apple has swayed to China’s will, but rather the latest example of the company trying to avoid a fight with the country that brings in an estimated 17 percent of Apple’s revenue. Apple has also made similar changes to its app store policies to appease regulators in the EU.

“We strive for iOS and iPadOS to be the best app ecosystem and a great business opportunity for developers in China,” Apple said in its announcement. “We are committed to terms that remain fair and transparent to all developers, and to always offering competitive App Store rates to developers distributing apps in China that are no higher than overall rates in other markets.”