Apple cuts widget makers’ commissions in half

Apple on Thursday announced the launch of a new developer program, the Mini Apps Partner Program, which will offer a discounted 15% commission rate on in-app purchases for mini apps.

The iPhone maker defines a widget as a “stand-alone” experience built using web technologies like HTML5 and JavaScript, which is distributed within a larger native app. The technology has been supported in the App Store for nearly a decade, but this is the first time a reduced commission has been offered on widget transactions.

In 2017, Apple added a rule to its app review guidelines, which lists specific requirements for widgets. In Guideline 4.7, the company gives developers permission to run mini-apps, mini-games, streaming games, chatbots, plug-ins, and game emulators that offer software that is not present in the main application binary. It also describes how to process sensitive data or filter out unwanted material, similar to native applications.

To qualify for the new Mini App program, Apple says the main app must be available on iOS or iPadOS and hosted on the App Store, and will need to follow the Apple Developer Program License Agreement and existing app review guidelines, including those for mini apps.

However, the program also adds new requirements for apps to support specific Apple technologies, including the Advanced Commerce API and the Declared Age Rating API, ensuring that apps deliver age-appropriate content. They must also use Apple’s in-app purchase system and send information about the user’s in-app purchase to Apple when requesting a refund.

Apple positions the program as a way for developers who host small apps and games to grow their business on the App Store. It also incentivizes developers to take advantage of Apple’s technologies, including its trust and safety tools, by offering the benefit of a reduced commission. These additional savings can allow developers to reinvest in their widget software.

Additionally, it ensures that Apple maintains its ability to extract commission from widgets, even as the market evolves to offer new experiences.

Today, there are a variety of native iOS apps that offer mini-apps, including messaging apps like LINE or WeChat, or those that offer mini-games, like Discord, for example. Recently, AI providers have started moving into the widget space. Notably, ChatGPT recently launched apps that run inside its chatbot, allowing users to interact with apps like Booking.com, Expedia, Spotify, Figma, Coursera, Zillow, and Canva. Some have hypothesized that this platform could eventually evolve to threaten the App Store business model if app interactions and transactions move within ChatGPT.

Bloomberg recently reported that Apple and Tencent agreed to a 15% commission on widgets in WeChat, but the program was not open to other developers.

Developers who want to join Apple’s Mini Apps Partner program can submit an application, then provide information about the host app, eligibility, and mini app. They must also agree to the terms and conditions of the program. When their app is ready, they then need to submit it for review. (Apple already requires app developers to include a statement that allows Apple to review the software and metadata included in the app, as well as links to the widgets it offers.)

Apple says in-app purchases within widgets are eligible for a reduced commission if they’re for digital goods and services, including consumer, non-consumer, auto-renewing, and non-renewing subscriptions.