Apple to Cut App Store Developer Fees in China From March 15

[MacRumors]

Apple has announced it is lowering App Store developer fees in China from March 15, with commission rates for standard in-app purchases (IAPs) set to change to 25%, down from 30%.

In an update on its Developer blog, Apple also said the commission rate for qualifying IAPs under the App Store Small Business Program and Mini Apps Partner Program (and auto-renewals of IAP subscriptions after the first year) will be 12%, down from the current 15%.

Apple said the changes are a result of "discussions with the Chinese regulator," indicating the move is to avoid regulatory intervention. A report last year revealed that China's antitrust watchdog, the State Administration for Market Regulation, was investigating Apple's app fees in the region.

A similar change was recently made in Japan, where Apple lowered its commission to 21% on some third-party in-app payments, among other major changes, due to regulatory pressure.

In its update today, Apple said that signing the updated terms by March 15 is not required "to receive the benefit of these commission rate changes starting that date."

"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," added Apple.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Apple to Cut App Store Developer Fees in China From March 15

 

[pbau]

When in EU?
When iPhone mirroring will be done for EU as well?

 

[jclardy]

It's very interesting the terms go into effect immediately, if you sign in the next 3 days.

EDIT: ah nevermind - it seems it is retroactive if you sign later.

 

[johnnytravels]

Always great to see how Apple submissively complies with authoritarian regimes while going rhetorically postal on democratically legitimised administrations.

 

[mw360]

When in EU?

When EU make law

When iPhone mirroring will be done for EU as well?

When EU unmake law

 

[Apple_Robert]

I think it would be a nice goodwill gesture for Apple to do that as well in the U.S. and the UK.

 

[wanha]

just goes to show that every competitive (i.e. monetary) advantage is fiercely protected until someone forces the company's hand (often by regulations).

There's no such thing as "doing the right thing" when it comes to business, everything is a calculated transaction based on personal gain.

Which is why the world is engulfed in flames and no one in power seems to care.

 

[kotaKat]

Now time to sit back and wait for the Epic Games Store to lower its cut on Fortnite user-generated content... right? No? 60%+ take by Epic? Okay.

 

[Abazigal]

Always great to see how Apple submissively complies with authoritarian regimes while going rhetorically postal on democratically legitimised administrations.

Well, it’s one thing to lower the App Store cut by a few percentage points. It’s another to allow side loading and third party app stores and allow developers to bypass Apple’s 30% cut altogether. So far, China isn’t demanding anything of Apple that would require them to give up control of their App Store. Yet.

 

[johnmacward]

just goes to show that every competitive (i.e. monetary) advantage is fiercely protected until someone forces the company's hand (often by regulations).

There's no such thing as "doing the right thing" when it comes to business, everything is a calculated transaction based on personal gain.

Which is why the world is engulfed in flames and no one in power seems to care.

Capitalism isn't moral, nor is it supposed to be moral, which is why we need to change it. It could be summed up as "Human atagonism as a society" - HAAAS.

 

[surferfb]

Always great to see how Apple submissively complies with authoritarian regimes while going rhetorically postal on democratically legitimised administrations.

I mean, isn’t that why we like living in democracies? You’re allowed to push back against the government when you think it’s wrong?

 

[svish]

Good to know. Possible that similar changes will happen in other countries too in the near future.

 

[MilaM]

Always interesting to observe how this country (China) works. The South China Post has this to say about Apple's move:

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.

What a coincidence 🤔.

 

[djphat2000]

Always great to see how Apple submissively complies with authoritarian regimes while going rhetorically postal on democratically legitimised administrations.

The EU wanted to change how Apple does business. While China wanted them to just lower the fee/commission.
One is reasonable. One isn't in this instance.

 

[MilaM]

The EU wanted to change how Apple does business. While China wanted them to just lower the fee/commission.
One is reasonable. One isn't in this instance.

Seems a litte bit naive to think that all it took for Apple to lower the fees was to ask nicely and say thank you.

 

[I7guy]

So next time publishers should just ask nicely for lower fees and say thank you? Who knew it was that easy to deal with Tim Cook.

And publishers should lower there prices as well. Correct?

 

[MilaM]

And publishers should lower there prices as well. Correct?

I'm sorry, not falling for whataboutism this time.

 

[I7guy]

I'm sorry, not falling for whataboutism this time.

Just like I’m not falling for passive aggressive dig against Apple.

 

[Abazigal]

Seems a litte bit naive to think that all it took for Apple to lower the fees was to ask nicely and say thank you.

I mean, developers are welcome to try likewise with other app stores like Steam, Sony or Nintendo and see whether the companies will be willing to entertain them or not. They will likely get the same "take it or leave it" treatment.

 

[MrSnirf]

Just like I’m not falling for passive aggressive dig against Apple.

Apple is not your friend or family. This is how crazy consumers have become that they take a criticism of a corporation as personal insult to them.

 

[Coleco]

What percentage of a sale did it used cost software developers to package software, print manuals, ship it to retailers, sell at wholesale only to have it sit on a store shelf, get stolen or damaged and potentially get returned (unsold or defective)? Not saying 30% is the right %, but the App stores completely eliminated the waste and inefficiency while opening a developer's market to the entire world of compatible devices 24/7. They enabled in-app purchases, easier software updates -- even some ability to use huge numbers of customers as beta testers. What's the "right" percentage for developers who use app stores as a channel?

 

[I7guy]

Apple is not your friend or family. This is how crazy consumers have become that they take a criticism of a corporation as personal insult to them.

The flip side is the publisher isnt your friend or family either. And those who mostly criticize Apple take it as an affront that Apple is being defended.

 

[MilaM]

What percentage of a sale did it used cost software developers to package software, print manuals, ship it to retailers, sell at wholesale only to have it sit on a store shelf, get stolen or damaged and potentially get returned (unsold or defective)?

Downloading software over the Internet has been a thing even before the app store was created. Therefore, I don't think this is a valid argument.

It's clearly an advantage for small publishers to let Apple be the merchant of record and take care of payments and taxes, and they absolutely should be compensated for all that. The question is if the fees are fair and if there should not be more competition in this space.

 

[The_Gream]

Some people have already mentioned the comparison.

EU - wants to change how Apple does business and even make it harder for Apple to make money on their IP.
Japan, Korea and now China, may have put in provisions to open up Apple’s ecosystem and/or reduce the commission, but they haven’t continually attacked Apple’s right to make profit on Apple’s IP like the EU has.

 

[MilaM]

EU - wants to change how Apple does business and even make it harder for Apple to make money on their IP.
Japan, Korea and now China, may have put in provisions to open up Apple’s ecosystem and/or reduce the commission, but they haven’t continually attacked Apple’s right to make profit on Apple’s IP like the EU has.

China's government essentially pressured Apple to lower the commission and allow mini-apps with even lower fees (among other things). How is this approach better for Apple? Less drama for sure, but the bottom line is pretty much the same, isn't it?

As far as I know the Japanese Regulator is still deliberating how to respond to Apple's changed fee schedule. It's not certain what the outcome will be and publishers apparently are not happy with status quo.