Apple reduces App Store commissions in China, to applause from Tencent, NetEase

Apple announced a reduction in the App Store commissions it charges developers in China ahead of the annual World Consumer Rights Day, drawing approval from the country’s biggest gaming companies Tencent Holdings and NetEase.

The US tech company said it would reduce the commission for standard in-app purchases and paid app transactions on iPhone and iPad to 25 per cent, from the current 30 per cent, according to a statement on its website on Thursday.

Meanwhile, the commission rate for subscription renewals, as well as the commission rate paid by qualified developers in its Small Business and Mini Apps Partner programmes, would drop to 12 per cent from 15 per cent, it said.

The new commissions take effect on World Consumer Rights Day on Sunday and the airing of a programme from state-run broadcaster China Central Television that is known for naming and shaming companies that have ignored consumer needs.

The event typically exposes companies involved in fraud, counterfeit goods or unfair practices, often triggering investigations and penalties from regulators.

“We strive for iOS and iPadOS to be the best app ecosystem and a great business opportunity for developers in China,” Apple said.