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Apple pressured Tencent and ByteDance over "commission loophole" and threatened to refuse to update WeChat and TikTok

2024-08-03

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Today (August 2), Bloomberg quoted people familiar with the matter as saying that Apple is stepping up its efforts to "put pressure" on Tencent and ByteDance, requiring the two companies to make "fundamental changes" to the most popular applications in China.

People familiar with the matter said that Apple has asked Tencent and ByteDance to "plug loopholes" in recent months because creators on the WeChat and TikTok platforms would use these "loopholes" to import users into external payment systems.This avoids the 30% commission that Apple usually charges.

In May, Apple warned Tencent that if it did not remove the links used by mini-game developers to accept payments from non-Apple platforms,It may reject important updates to WeChatMonths later, Apple asked the company to disable a key "in-game messaging" feature that would also divert users, and Tencent has yet to agree to those requests.

One of the people familiar with the matter also said that Apple has taken a similar approach to ByteDance. In June this year, Apple told ByteDance that unless it also plugged a similar payment loophole,Otherwise, the new version of TikTok will not be accepted.

Tencent declined to comment, and a Bytedance representative did not respond to an email seeking comment. An Apple spokesperson cited its guidelines, saying that all sales of digital goods must go through Apple's system, otherwise the review team may reject apps that violate this policy.

IT Home Note: Most payments or services completed through WeChat are exempt from the fees charged by Apple, but the content of the WeChat App itself and other online entertainment (such as mini-games) still need to pay iOS revenue sharing fees.

WeChat and ByteDance have recruited thousands of mini-game or mini-program developers to create content for their WeChat and Douyin ecosystems. As these mini-games have become popular, developers have begun to make profits by selling in-game items.Many people have found ways to bypass Apple's payment system, in order to increase the already meager profits. This practice is called "guiding" - guiding players away from the big platforms.

On WeChat, Apple detected and attempted to shut down web links circulated by developers — a “loophole” that Tencent agreed to close with a WeChat update released in early July. But Apple is still seeking further steps, requiring Tencent to disable the in-game chat feature between creators and players, as it is also being used to provide alternative payment links.

Two people familiar with the matter said:Tencent did not agree to the above requestApple has said it will remove the proposed changes because it believes they will weaken the product and impact the quality of service players receive. The company has told game developers that their business models “may be disrupted.”

Douyin is also facing pressure from Apple. According to people familiar with the matter, in June, Douyin launched a plan toAllow Apple to take a commission on in-app purchasesIf it fails to comply, Douyin will not be able to update the 618 e-commerce activities.

This article comes from: IT Home