The global impact of Apple's "Apple tax" controversy
Apple's long-term practice of charging high "Apple taxes" on the App Store has sparked widespread controversy and antitrust investigations around the world. This fee policy not only increases the burden on developers and affects the development of the ecosystem, but also causes consumers to pay higher prices. In the face of pressure from regulators in many countries, Apple has had to make some concessions, but the proportion of "Apple tax" in the Chinese market is still the highest in the world.
Unfair treatment of developers and users in China
China is Apple's second-largest source of revenue in the world, and its revenue contribution is huge. But in this important market, Apple imposes an "apple tax" of 30% on "standard businesses" and 15% on small businesses, which is a significant increase in rates in major markets such as the European Union, the United States, and South Korea. This has increased the burden on Chinese developers, affecting their profitability and competitiveness in the international market. Some developers have had to pass the cost on to consumers, leading to higher prices for apps or in-app purchases. Chinese users are unable to enjoy preferential policies in regions such as Europe and the United States and pay higher prices for digital goods.
A Chinese developer said: "Based on the current 30% commission, the 100 yuan gift income of China's live broadcast industry will be left after Apple takes it, and 35 to 50 yuan will be distributed to the anchor, and the rest of the money will be used to pay for streaming fees, manpower and other expenses." A complete team of 5 people costs two or three hundred thousand yuan a month, and the rest of the profit is not much. Another developer believes that Apple takes a 15% cut for developers with annual revenue of less than $1 million, but domestic Internet applications can easily reach this turnover, which means that in most cases they need to accept a high commission of 30%.
Antitrust actions by regulators around the world
In the face of Apple's abuse of market dominance and restriction of competition, the European Union, the United States, South Korea and other regions have passed lawsuits or legislation to require Apple to open third-party payment and app stores. Apple has been forced to reduce the "apple tax" in these areas, down to as little as 10%.
In 2021, South Korea passed an amendment to the Telecommunications Business Act, becoming the first country in the world to require Apple to open up third-party payments. In 2023, the EU's Digital Markets Act will come into effect, and Apple will open third-party app stores and payment systems in the EU, and reduce the "Apple tax" to 17% or 10%. A U.S. court ruling requires Apple to improve its app store policies to allow developers to introduce alternative payment methods.
Apple's limited concessions and new strategy
In the face of pressure, Apple has made limited concessions, such as a small reduction in commission rates or the opening of third-party payments for specific apps. But in major markets such as China, Apple still maintains a high "apple tax". Some believe that Apple is trying to retain its main source of profit by introducing new measures such as "core technology fees".
Expectations for China's anti-monopoly regulation
Industry insiders expect China to follow the example of Europe and the United States and other regions to launch an antitrust investigation against Apple. Promote the rectification of Apple's business in China and the EU market to achieve fair competition. This will not only benefit Chinese developers in the international market, but will also bring benefits to consumers.
According to an enterprise developer, China and the U.S. have stricter restrictions on sideloading and third-party payments, while the European Union and South Korea are more open in this regard, and these differences affect business strategies and user purchasing behavior. He called for healthy competition between operating systems and gave developers and users more choices.