Apple Announces New Program Slashing ‘Mini App’ Fees in Half

Apple (AAPL) announced Thursday a potentially significant shift in its App Store strategy, unveiling a new program that could reduce commission fees for certain app developers from 30% to 15%. This move, however, comes with a key condition: developers must embrace Apple’s technology and infrastructure more deeply.

The “Mini Apps Partner Program” offers this lower commission rate in exchange for developers leveraging specific Apple technologies within their apps. This includes utilizing Apple’s software for handling user purchase history, verifying user ages, and processing in-app transactions. Essentially, Apple is incentivizing tighter integration with its ecosystem.

The concept of a “mini app” refers to a lightweight application residing within a larger platform, similar to those found on Discord or, most notably, within WeChat. These mini-apps are typically built using web technologies like HTML and JavaScript, allowing for quick development and deployment within an existing framework. WeChat, for example, hosts millions of mini-apps, enabling users to perform diverse tasks like tracking deliveries, accessing public transportation information, and online shopping.

The growing popularity of mini-apps extends beyond social platforms. AI companies like OpenAI are increasingly incorporating them into their chatbots, expanding the functionality and utility of these conversational interfaces.

Apple’s strategic shift comes amidst increasing regulatory scrutiny and legal challenges surrounding its App Store policies. European regulators and US court decisions have put pressure on the company to relinquish some control over its App Store and reduce its commission fees. The core of the issue is Apple’s dominance: in most countries, the App Store remains the sole avenue for installing software on iPhones, giving Apple considerable leverage.

This isn’t the first time Apple has offered reduced fees in exchange for increased adherence to its ecosystem. In recent years, the company has rolled out similar programs for video and news apps, offering lower commission rates in return for deeper integration and participation within the Apple ecosystem. These initiatives suggest a broader strategy of incentivizing developers to embrace Apple’s technologies, solidifying the company’s control and user experience.

Apple consistently argues that both developers and users benefit from adhering to its technological framework and established rules, rather than attempting to circumvent them to avoid fees. By providing a secure and curated platform, Apple claims to offer a superior experience for both parties.

“This program is designed to help developers who host mini apps grow their business and further the availability of mini apps on the App Store — all while providing a great customer experience,” Apple stated in its announcement. The company underscores the benefits of the program for developers seeking to expand their reach while leveraging Apple’s infrastructure.

While steadfastly prohibiting alternative app stores on its platform, Apple has gradually embraced the mini-app concept within its own ecosystem. Last year, the company permitted mini-apps to process in-app purchases using Apple’s payment system for digital goods, such as in-game currency or virtual lives. This move signaled a softening stance and a recognition of the growing popularity of mini-apps.

The App Store review process remains a crucial component of Apple’s ecosystem. All iPhone developers must submit their apps to Apple for review, a process involving human evaluation to ensure compliance with Apple’s guidelines before the software becomes available for download.

Developers participating in the new Mini Apps Partner Program will be required to provide Apple with detailed information for each mini-app experience they offer. This requirement ensures that Apple retains oversight and control over the content distributed within its platform.