China's Stance on Apple's App Store Fees Under Scrutiny

Apple's 30% App Store fees, known as the "Apple Tax," are facing global resistance. Japan and South Korea have enacted laws to lower these fees, influenced by the EU's Digital Markets Act. Japan's new legislation reduces fees to 17% and forbids Apple from restricting third-party billing systems. South Korea has prohibited app store operators from mandating developers to use their payment systems. The EU has fined Apple 1.8 billion euros and required fee reductions to 17%.

China, Apple's second-largest market, still permits high App Store fees. Apple's revenue from China in 2023 was triple that of Japan. Analysts believe China's recent focus on antitrust and Fair Competition Review Regulations could lead to similar regulatory measures. Apple's service revenue in China has quadrupled since 2015, despite a 10% drop in hardware sales. The App Store accounts for nearly 34% of Apple's global service revenue.

In China, Apple charges significant fees from tech giants like ByteDance and Tencent. Small Chinese game developers on WeChat mini-programs also encounter the "Apple Tax," affecting their livelihoods. With Beijing aiming to boost employment and domestic spending, the future of Apple's fees in China is uncertain.