Apple has revealed a major change to its App Store business model, announcing that commissions for mini apps on iPhones and other Apple devices will drop from up to 30 percent to 15 percent. The reduced fee applies to developers who build mini apps inside larger host applications and who adopt specific Apple technologies, including its age range declaration system, Reuters news report said.
Mini apps are widely used in China, embedded within super apps like Tencent’s WeChat and Ant Group’s Alipay. The model is spreading globally, with OpenAI recently announcing plans to introduce mini apps inside its ChatGPT mobile app. Under Apple’s current rules, developers of these embedded apps pay commissions directly to Apple for digital transactions, while financial arrangements between the mini app and its host platform remain private.
Age Verification Debate Shapes Apple’s New Policy
Apple’s decision comes against a backdrop of growing disputes in the United States over age verification requirements on digital platforms. Several states are pushing laws that would mandate age checks across apps, while Meta argues that platforms like Apple’s App Store and Google Play should handle age verification centrally.
Apple has opposed such legislation, saying it would have to gather intrusive personal data from adults. Instead, the company is promoting its age range declaration system, where users provide an age bracket that developers can validate. The lower commission for mini apps is tied to adoption of this system, signalling Apple’s effort to align commercial incentives with its privacy focused stance.
Apple’s App Store Strategy report said the App Store attracted more than 813 million weekly visitors and facilitating nearly 1.3 trillion dollars in billings and sales worldwide in 2024. Over the past five years, the economic activity generated across the App Store ecosystem more than doubled as app usage and consumer preferences evolved.
Of the total 2024 billings and sales, 131 billion dollars, or 10 percent, came from digital goods and services, driven by strong growth in games, photo and video apps, and enterprise tools. Physical goods and services accounted for 1.014 trillion dollars, or 78 percent, supported by rising demand for online food and grocery orders.
In app advertising revenue reached 150 billion dollars, or 12 percent, reflecting a 131 percent increase over five years. Growth was broad based across regions, with the United States, China, and Europe all doubling or more in activity. The App Store remains a large and growing ecosystem, serving more than a billion users and supporting millions of apps worldwide.
Legal Blow in the United Kingdom Raises Pressure
On the same day Apple announced its commission change, the company suffered a significant legal setback in the United Kingdom. The Competition Appeal Tribunal refused Apple permission to appeal a ruling that found the company abused its market dominance by imposing excessive and unfair commissions on app developers.
The tribunal’s earlier decision concluded that Apple had used its power over app distribution to shut out competition and overcharge developers by the difference between a benchmark seventeen point five percent commission and Apple’s typical rate of 30 percent. The court also found that developers passed about half of these excess costs on to users.
The ruling exposes Apple to potential damages of up to 1.2 billion pounds, covering alleged overcharges from October 2015 to February 2024. While Apple cannot appeal at the tribunal level, it can still take its challenge to the Court of Appeal. The company has requested twenty one days to submit its application.
Apple maintains that the tribunal’s conclusions misrepresent the app economy and fail to recognize the value the App Store offers developers and users. But the case adds to the growing list of regulatory challenges Apple faces in the United States, United Kingdom and European Union over App Store fees and competition practices.
A Pivotal Moment for Apple’s App Store Strategy
The commission cut for mini apps signals a tactical pivot as Apple navigates mounting global scrutiny. By lowering fees for developers who integrate its age verification tools, Apple is attempting to advance its privacy framework while defending its control over app distribution.
Baburajan Kizhakedath