After a year of negotiations, Apple has finally gained a foothold in WeChat's sprawling mini apps ecosystem, with potential windfalls estimated to run in the billions of dollars.
Apple will earn a 15 percent commission on all WeChat mini apps transactions
Most Apple users in China typically do not access specific services by downloading apps from the App Store. Instead, they typically rely on WeChat's sprawling ecosystem of mini apps, with the platform serving as a hub for services, utilities, and entertainment.
Consequently, up until now, the developers of those mini apps could redirect users to external payment options for in-app subscriptions and purchases, with Apple receiving next to nothing.
This changes now, as Apple has struck an agreement with WeChat for a 15 percent commission on the transactions within supported mini apps, with participating developers now required to adopt a set of Apple's software requirements, including a feature that allows parents to share their child's age range.
While the 15 percent commission is half of what Apple typically charges, the Cupertino giant still stands to gain billions of dollars from this arrangement, especially given the size of WeChat's ecosystem.
Meanwhile, as we noted in a previous post, Apple modified the terms for app developers in the EU in March 2024, allowing those who enrolled in the modified program to pay a lower percentage of their overall app-derived revenue to Apple.
Under the modified terms, the developers initially paid a flat Core Technology Fee (CTF) of EUR 0.50 for each "first annual install" - which is the initial installation by an EU account within a year. The fee applies to apps with over one million downloads per year.
This Core Technology Fee, however is set to change from January 01 next year, when Apple will charge a 5 percent fee, with developers who use external payment options ending up paying up to 20 percent in combined fees (2 percent initial acquisition fee + 13 percent in store service fees + 5 percent Core Technology Fee) instead of Apple’s standard 30 percent App Store commission.
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