(Image source from: REUTERS)

Apple has declared that it will lower its commission fees for developers using the App Store in China, which it announced on Thursday. After talks with local authorities, the tech company from Cupertino has decided to revise its fee structure, which will see the standard commission drop and also lessen fees for developers involved in specific programs, such as the App Store Small Business Program. This decision comes in response to the rising competition from local app platforms like Xiaomi and increasing scrutiny from regulators in China. According to Apple's developer website, starting on March 15, a new commission rate of 25 percent will be applied to regular Apple In-App Purchases and downloads of paid apps on the mainland App Store in China, down from the existing rate of 30 percent. This change will affect purchases made through Apple's in-app payment system on iPhone and iPad devices. The company will also decrease commissions for developers who meet certain criteria. For instance, the current fee for transactions under the App Store Small Business Program and the Mini Apps Partner Program is at 15 percent, but this will be lowered to 12 percent following the changes.

A similar 12 percent fee will apply to subscriptions that renew automatically after the first year, according to Apple. Currently, developers pay a lower commission rate for subscription renewals after the initial year, and this new adjustment will further reduce that rate. The company also stated that developers do not need to accept new terms by March 15 to take advantage of the new commission rates. Instead, the reduced fees will automatically apply to qualifying transactions once the new changes begin. Apple explained that these adjustments aim to keep iOS and iPadOS as appealing platforms for developers in China. The iPhone manufacturer seeks to uphold fair and clear policies, while ensuring that App Store commission rates remain competitive compared to those in other regions. Similarly, Google has recently made its own changes to developer fees and billing policies within the wider Android ecosystem. It introduced more flexible billing options that enable developers to present alternative payment methods alongside Google Play's billing system in selected markets. The company has also made efforts to improve accessibility for third-party app stores on Android devices.