Technology
Danish Kapoor
Danish Kapoor

Apple quietly cuts App Store commission in China

Apple announced that it has reduced App Store commission rates in China. According to the company’s statement, the standard commission rate charged to developers is being reduced from 30 percent to 25 percent. In addition, the commission rate applied for automatic renewals after the first year of in-app subscriptions is reduced from 15 percent to 12 percent. The new regulation came into force as of March 15, 2026. Apple states that developers will not be required to separately accept new contract terms for this change.

Within the scope of this regulation, the commission rates applicable to paid applications and in-app purchases will be directly reduced. In addition, in applications that use a subscription model, the deductions applied after the second year are also reduced. Thus, a lower-cost revenue sharing model emerges, especially for application developers who develop subscription-based services. Despite this, Apple states that it maintains a revenue structure that will maintain the sustainability of the App Store ecosystem.

Why did Apple change its App Store policy in China?

The reduction in commission rates came to the agenda after negotiations between Apple and Chinese regulatory authorities. The company is implementing this change without major public debate. Despite this, it is known that the Chinese market is critical for Apple. In particular, the latest financial results reveal that iPhone sales have increased strongly in China. Apple’s China revenues in the first quarter of fiscal 2026 increased by 16 percent on an annual basis, resulting in one of the highest quarterly revenues in the company’s history.

On the other hand, there are significant differences between Apple’s App Store policies in different regions. The discussions that have been going on for years between the company and regulators in the European Union attract attention. It is known that within the scope of the Digital Markets Act (DMA) in Europe, Apple had to make various regulations regarding alternative application stores and payment systems. Despite this, the implementation of the commission reduction in China without a legal debate on a similar scale is considered a remarkable development.

On the US side, App Store policies went through a different legal process. The lawsuit between Epic Games and Apple over Fortnite had become an important topic of discussion in the mobile application economy. The court did not rule that Apple created a monopoly in the iPhone ecosystem. However, it was decided to give developers a certain amount of flexibility in directing users to alternative payment methods. Despite this, Apple has not changed its base commission rates in the US.

In addition to all these, Apple also has different discount programs for developers. Within the scope of the App Store Small Business Program for small businesses, the commission rate is 15 percent for developers whose annual income is below a certain level. In addition, the discounted rate applied after the second year for subscription-based applications has long been used as part of the platform’s revenue sharing model.

The new commission rates that will come into force in China are included in the updated version of the Apple Developer Program License Agreement. In its statement, Apple states that it aims to keep the conditions offered to developers fair and transparent.

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Danish Kapoor