The "Apple Tax" barrier is breached again.

Author | Huang Yu

Editor | Wang Xiaojuan

Apple has been forced to tear down a corner of the "high wall" it has long established in Asia.

On December 18, the latest developer update published on Apple's official website showed that, in order to comply with Japan's "Act on Promotion of Competition for Specified Smartphone Software," Apple has officially adjusted its App Store policy for the Japanese region.

This adjustment is a "historic" concession: Japanese developers will be allowed to launch alternative third-party app stores on iPhones and need only pay Apple a 5% commission. In addition, for apps released through the App Store that use external links and other third-party payment channels, the rate has been significantly reduced to 10%-21%, and an extra 5% must be paid if the Apple IAP system is still used.

This means that Japan has officially become the first country in Asia to break Apple's "in-app purchase (IAP)" and "app distribution" dual monopoly. Previously, in the EU, Apple also allowed users to download software from sources outside the Apple App Store.

For a long time, relying on the closed nature of the iOS ecosystem and its dominant market position, Apple has imposed high "Apple tax" fees on developers worldwide.

The so-called "Apple tax" refers to the requirement that when Apple users download paid apps or purchase digital goods or services within apps through the Apple App Store, payment must first be made using Apple's payment system; Apple takes a cut of 10%-30% before transferring the remaining funds to the developer.

In recent years, the high "Apple tax" has caused considerable controversy in global markets, and Apple has made concessions in some regions.

According to Wallstreetcn, in addition to Japan, Apple has already implemented open and reduced tax policies in the US, EU, and other regions; for example, regarding alternative payment via external links, the US rate drops directly to zero, and the EU is reduced to 12% for the first year and 10% from the second year onwards.

Among Apple's top four markets by global revenue, China is the only one still subjected to Apple’s dual monopoly on app payment and app distribution. Not only does it apply the highest "Apple tax" rate globally, but it is also unable to introduce third-party app stores and payment processing systems.

In the Chinese market, Apple restricts users to in-app payments, charging a commission of 30% for standard enterprises and 15% for small enterprises.

This has evidently caused serious harm to the interests of Chinese developers and consumers. Because developers must pay Apple’s high "Apple tax," it is not hard to find that some identical app products or in-app purchases are more expensive for Apple users than for Android users.

Wang Qiongfai, founding partner of Zhejiang Kenting Law Firm and agent for China's first antitrust lawsuit against the Apple tax (consumer Jin Xin vs. Apple), once pointed out that in 2024 Apple collected about 50 billion yuan of Apple tax from China (including Hong Kong, Macau, and Taiwan), and by unilaterally revising the "App Review Guidelines" and other "Apple laws," attempted to expand the tax base to include digital ecosystem apps such as Chinese applets selling digital goods and e-commerce platforms, aiming to levy at least another 10 billion yuan.

Against this backdrop, disputes over the "Apple tax" have always existed between Apple and Chinese software giants like Tencent and ByteDance.

Last year, Apple further pressured Tencent and ByteDance, requesting these companies to "plug" loopholes related to in-app mini-games payments—developers were attempting to guide users to external payment systems to avoid Apple’s commission.

After more than a year of negotiations and game-playing, on November 14 this year, Apple announced that applet developers could enjoy a reduction to a 15% commission on eligible in-app purchase items (the general commission is 30%), which may signal Apple's "localized pilot, limited opening."

Nevertheless, on a global scale, Chinese developers still bear the highest Apple tax.

Industry insiders point out that if Apple makes concessions, it will benefit upstream IP/R&D/publishing companies as well as downloading platform-type companies, and companies with a high proportion of iOS revenue are likely to become core beneficiaries.

As the "Apple tax" wall is dismantled in the EU, breached in the US, and toppled in Japan, the wave of global regulation is already at the gates.

Japan's break with the "Apple tax" monopoly undoubtedly provides a new template for more regions, including China, to challenge the "Apple tax." For any market, this should not be a story to watch from the sidelines, but rather the beginning of change. In the context of globalization of the digital economy and stricter antitrust regulation, eliminating unequal treatment on the "digital border," and allowing Chinese developers and consumers to enjoy the same fair competition environment as the rest of the world, is already an urgent necessity.

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