Apple is making a 'concession' in China that iPhone maker has so far not made anywhere in the world

Apple is reportedly lowering its App Store commission fees in China from March 15. According to a report by Bloomberg, the iPhone maker is changing the commission for software and in-app purchases from 30% to 25% for its mainland China App Store. As per the report, Apple is also reducing its rate for apps that are part of its programs for small businesses and developers of mini apps, from 15% to 12%. Apple said on its developers site that the move is effective from March 15 and applies to apps for both iOS and iPadOS. The company said that the fee reduction comes “following discussions with the Chinese regulator”.“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,” the company added on its website. The reduction in commission fees is expected to benefit app developers and companies operating “mini apps”, which are smaller applications that run inside larger platforms such as the country’s WeChat.According to a report by China’s state-owned Economic Daily, the lower fees could help Chinese developers save more than 6 billion yuan (about $873 million) in operating costs each year. The publication also said the move could reduce prices for services such as game purchases, live streaming tips and membership subscriptions on iOS."This adjustment will ... improve consumption choices and information transparency," the Economic Daily said. "The premium for digital goods and services on the iOS side will be gradually eliminated, and the prices of membership subscriptions, game recharges, live broadcast tips, mini programs and other scenarios are expected to decrease, which is expected to save consumers up to nearly 1 billion yuan per year," it added.Apple’s commission structure — often referred to as the “Apple tax” — has faced scrutiny from regulators in several countries. Experts say Chinese regulators have also been in discussions with Apple about its app store policies. Rich Bishop, founder of AppInChina, said the company had been in talks with China’s IT ministry and other government departments about reducing its fees.