Chinese developers file antitrust complaint against Apple over App Store fees

A group of 48 Chinese developers is asking regulators to investigate Apple over what it describes as unfairly high App Store fees and restrictive distribution rules. Here are the details.

Chinese developers ask for more flexibility and reduced rates

As reported by the South China Morning Post (via AppleInsider), the developers filed a complaint with China’s State Administration for Market Regulation and published an open letter accusing Apple of abusing its market dominance by imposing unfairly high App Store fees.

From the report:

The developers asked the antitrust regulator to investigate and penalise Apple for allegedly “abusing the company’s market dominance” to implement “unfair and excessively high” costs on local creators, according to the letter published by one of the developers, Tian Junwei, on his WeChat blog on Monday.

Today’s filing comes just days after Apple announced a new set of rules for developers in Brazil, which are very similar to those it announced in Japan late last year.

In Brazil, developers using Apple’s in-app purchase system pay a 5% payment-processing fee plus a 21% App Store commission, which can be reduced to 10% for eligible developers. The processing fee does not apply to purchases made through alternative payment methods, while developers that link to external payment services pay a 15% Store Services Commission. Apps distributed through alternative marketplaces are also subject to a 5% Core Technology Commission on digital goods and services.

In addition to Brazil and Japan, Apple has also updated its App Store terms in the EU to comply with the Digital Markets Act. In the region, developers that direct users to external payment options may be charged a 2% Initial Acquisition Fee, plus a Store Services Fee of either 5% or 13%, reduced to 10% for eligible developers. Apple also charges a 5% Core Technology Commission under its newer terms.

As for China, Apple announced in March that it was cutting its standard commission on paid apps and in-app purchases from 30% to 25%, with the rate potentially reduced to 12% for eligible developers.

However, the developers behind the new complaint argue that Apple has not gone far enough, as it still does not allow alternative app marketplaces or offer more flexible payment options in China.

South China Morning Post reached out to Apple for comment, but the company did not respond.

To read the South China Morning Post’s full report, follow this link.

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