Apple Cuts App Store Fees in China as Regulatory Scrutiny Intensifies — Update

By Yang Jie and Tracy Qu

Apple is lowering the fees it collects from app developers in China, a rare move aimed at defusing a brewing regulatory showdown in its most important international market.

The iPhone maker said Friday that it will lower the commission it charges on digital sales in China to 25% from 30% following discussions with regulators. The cut, which takes effect Sunday, also applies to smaller developers and certain subscription services, reducing rates to 12% from 15%.

The fees Apple collects from app developers, which go as high as 30%, have sparked backlash from regulators around the world in recent years.

In China, Apple has come under intensified scrutiny from regulators who have expressed concern over the so-called Apple tax charged to developers on App Store purchases. Regulators have also taken issue with the company's restriction against third-party payment systems, a policy that has sparked a standoff with Chinese tech giants like Tencent Holdings over mobile gaming revenue.

In a 2024 ruling, a Shanghai court dismissed a claim brought by a consumer alleging that Apple had abused its market position regarding the App Store fees, but labelled the company a "dominant player." The case is now on appeal, and legal experts say the higher court's decision could reshape Apple's obligations in the country.

Apple has long argued that its commissions are justified by the security and global reach the App Store provides. On Friday, it said that it remains "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."

By trimming the fees, Apple is effectively offering an olive branch to Chinese policymakers as they step up oversight of foreign tech firms, said You Yunting, senior partner at Shanghai-based DeBund Law Offices.

However, even with the reductions, China is still one of Apple's most expensive jurisdictions for both developers and consumers, with You noting that fees remain higher than in other markets where regulators have forced more drastic changes.

In the European Union, Apple cut commission rates to 17%, with a fee of EUR0.50 (58 U.S. cents) for each download after one million, as well as an optional 3% fee for payment processing, after passage of the Digital Markets Act. Developers can opt to pay the earlier 30% standard commission instead. In Japan, a similar regulatory push led the company to allow alternative app stores and payment systems.

In the U.S., a series of court rulings in the wake of the Epic Games litigation have largely dismantled Apple's ability to collect a work-around commission on external web purchases.

Write to Yang Jie at jie.yang@wsj.com and Tracy Qu at tracy.qu@wsj.com

Corrections & Amplifications

This item was corrected on March 25, 2026 to show that Apple cut commission rates for app developers in the European Union to 17%, with a fee of EUR0.50 (58 U.S. cents) for each download after one million, as well as an optional 3% fee for payment processing, after passage of the Digital Markets Act, and that developers can opt to pay the earlier 30% standard commission instead. An earlier version incorrectly omitted the EU downloads fee and the option to pay the 30% comission.

(END) Dow Jones Newswires

March 13, 2026 02:45 ET (06:45 GMT)