Apple is intensifying its efforts to compel Tencent, the Chinese tech giant, to adhere to the App Store’s in-app purchase system. The move aims to close loopholes that have allowed Tencent’s apps, particularly WeChat, to bypass Apple’s payment system and avoid the associated fees.
Current Situation and Tencent’s Response
Tencent currently employs workarounds for mini-apps and games within WeChat, redirecting users to external payment systems. This strategy enables the company to sidestep Apple’s 30% commission on App Store payments, as reported by 9to5Mac.
James Mitchell, Tencent’s chief strategy officer, addressed the issue in a statement to investors. He expressed the company’s desire to find an “economically sustainable” and “fair” solution, stating, “We want to make [in-app purchases] available on terms that we believe are economically sustainable and fair. So we are currently in discussions and we hope that they will lead to a positive outcome.” Mitchell added, “But if the discussions don’t move forward, the status quo will remain.”
Potential Consequences and Broader Context
Bloomberg has reported that Apple is considering blocking future WeChat updates if Tencent fails to comply with App Store regulations. This dispute highlights the ongoing tension between Apple’s desire to enforce its platform rules and receive commissions on all App Store transactions, and developers’ efforts to optimize costs and maintain their existing business models.
The conflict with Tencent is part of a larger, ongoing battle between Apple and various app developers regarding App Store commissions. Similar disputes have previously arisen with companies like Epic Games.
As this situation continues to develop, we’ll keep you updated on any new developments or resolutions that may emerge from the discussions between Apple and Tencent.