Apple decreases App Store commissions for’mini applications’

SAN FRANCISCO (Reuters) — Apple (AAPL.O) announced Thursday that it will decrease commissions for “mini apps” on iPhones and other devices.

Apple’s App Store charges up to 30% in fees for digital transactions. Under the scheme unveiled Thursday, that rate would be reduced to 15% for makers of micro apps – commonly game titles and other applications sold within a bigger “host app” – if they employ specific Apple technologies, including as Apple’s approach for determining the user’s age range.

Mini applications are particularly popular in China, where prominent applications such as Tencent Holdings (0700.HK) and Alipay include a plethora of game titles and other services within their main application. However, the approach is now being embraced by U.S. companies, with ChatGPT maker OpenAI announcing last month that it will include micro applications within its flagship chatbot software.

Mini software creators must pay Apple direct commissions for digital purchases, according to software Store guidelines. The host app and the micro app can decide how much of a cut they want to take.

Apple’s linkage of cheaper costs to its age declaration technology comes as the iPhone manufacturer is at odds with governments and tech rivals like Meta Platforms (META.O) over age verification on digital platforms.

Multiple U.S. states are pursuing laws requiring app users to verify their age, and Meta believes that the ideal location for that verification to occur is at the level of Alphabet’s (GOOGL.O) Google and Apple app markets.

Apple has stated that the legislation would compel it to infringe adult users’ privacy and has offered an alternative that would enable software developers to accept a user-declared age range, which would need to be authorized by an adult in the event of younger users.