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Deepline | Apple faces renewed antitrust pressure in China as developers demand fairer App Store terms

Deepline
2026.06.23 19:00
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According to a report by National Business Daily, on June 22, 48 small and medium-sized developers that distribute iOS apps in the Chinese market jointly submitted a letter of complaint to the State Administration for Market Regulation, titled "Joint Complaint by Developers Regarding Apple's Abuse of Its Dominant Market Position in China."

The complaint accuses Apple of engaging in restricted trading, differential treatment, tying arrangements, and unfairly high pricing in the Chinese market and demands that Apple open up third-party app distribution, in-app third-party payment systems, and external payment link channels.

It is worth noting that this is not the first time Chinese developers have filed such complaints.

In August 2017, a group of domestic developers, along with lawyers and legal experts, held a press conference to assert that Apple's App Store had, over its long-term operation, engaged in illegal practices, infringing, and monopolistic practices. They subsequently filed complaints with China's two antitrust enforcement authorities.

The latest complaint stems from a major policy adjustment Apple recently made in the Brazilian market. Following years of investigation by Brazil's antitrust authority CADE, Apple officially reduced its commission rates in Brazil on June 19, while simultaneously opening up third-party downloads, external payment links, and lowering its in-app purchase commission rates. As a result, three major overseas markets (the EU, Japan, and Brazil) have now all adopted a model that combines lower in-app purchase commission rates, open third-party payment systems, open external payment links, and open third-party app distribution, giving developers and consumers more choices in payment and download channels.

In contrast, in China, on March 13, Apple announced that, following communications with Chinese regulators, it would adjust the commission rates for the App Store on iOS and iPadOS for the Chinese mainland, lowering the maximum rate from 30% to 25%. At the same time, the commission rate for small and medium-sized developers with annual revenue below US$1 million, as well as for qualifying in-app purchases under the "Mini Apps Partner Program" and for auto-renewable subscriptions after the first year, was reduced from 15% to 12%.

However, external payment links and third-party app distribution have yet to be opened up.

Since the App Store's launch in 2008, Apple has maintained a globally uniform policy: it takes a 15% to 30% commission on in-app digital goods and services revenue generated by developers. Specifically, for apps with annual revenue exceeding US$1 million, Apple takes a 30% cut of digital content sales within the app, while for small and medium-sized developers earning less than US$1 million, the commission is 15%. The remainder is passed on to the developers—a practice commonly referred to as the "Apple tax."

Over the past several years, disputes and lawsuits involving the "Apple tax" have never ceased. Not only major developers like Epic Games and Spotify, but also governments and regulatory bodies from the EU, the US, Japan, South Korea, the Netherlands, and other countries and regions have gradually joined the resistance against the "Apple tax."

In June 2025, Apple cited a research report jointly published by Boston University and Analysis Group, saying that in 2024, the App Store generated US$1.3 trillion in developer billings and sales, comprising three main segments: digital goods and services, physical goods and services, and in-app advertising, accounting for 10.11%, 78.3%, and 11.58%, respectively. Under Apple's commission rules, the platform typically takes a cut only from digital goods and services—the segment that accounts for about 10% of the above total.

According to the report, over 90% of the revenue generated through the App Store is not subject to any commission paid to Apple and belongs entirely to developers. Apple likely intended this data to illustrate the App Store's contributions to developers and the global economy, in an effort to alleviate ongoing external criticism and concern over the "Apple tax."

The report's data also shows that the App Store's total developer billings and sales grew from US$514 billion in 2019 to US$1.3 trillion in 2024. By region, China led in 2024 with US$539 billion in contributions, followed by the United States with US$406 billion and Europe with US$148 billion.

Meanwhile, a report published on Apple's official website at the end of 2025 shows that in 2024, digital goods and services transactions on the Chinese App Store reached approximately US$23 billion, second only to the US at US$53 billion, and ahead of Europe at US$20 billion.

Another report released on Apple's official website said that from 2019 to 2023, the Apple App Store ecosystem facilitated developer billings and sales in China that grew from 1.65 trillion yuan to 3.76 trillion yuan, of which over 95% went entirely to developers and businesses of all sizes, without any commission paid to Apple.

The report also indicates that in 2023, more than half of the Chinese developers who paid commissions were subject to the 15% rate. Additionally, in-app advertising revenue is a significant income source for game developers—particularly small ones—and the App Store does not take a commission on such revenue. As a result, the effective commission rate for large developers is, in most cases, lower than the 30% cap.

It is also worth noting that Apple has reached separate partnership arrangements with Tencent and ByteDance. In September 2025, the App Store announced support for Douyin Pay, allowing users to make purchases in scenarios such as the App Store, Apple Music, iCloud, and Apple Care+ after linking their Apple account. In November 2025, Apple announced the "Mini Apps Partner Program," under which commission rates for mini-program transactions, including WeChat mini-games, were reduced from 30% to 15%.

Apple's latest fiscal first-quarter 2026 earnings report shows that services revenue reached a record high of US$30 billion during the quarter, up 14% year-over-year. Services revenue includes iCloud storage and other subscriptions, paid apps, and in-app advertising, as well as payments related to web search.

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Tag:·App Store·Chinese market·iOS apps·game developers

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