Apple is stepping up its pressure on Chinese giants Tencent and ByteDance, publishers of the popular WeChat and TikTok apps in particular. The goal: to force them to close loopholes that allow creators to bypass the famous 30% commission taken by Apple on in-app purchases.
“Flaws” to escape the App Store
According to BloombergApple recently asked Tencent and ByteDance to prevent creators of mini-games and mini-apps integrated into WeChat and TikTok from including links to external payment systems. A practice called “guiding” which allows them to escape Apple’s commission deemed too high. As a reminder, this is precisely the reason why the game Fortnite was removed from the App Store several years ago.
Apple has warned that it will no longer approve updates to WeChat and TikTok until this problem is fixed. It has also demanded that Tencent disable in-game chats between developers and users, another way of spreading these famous links. A request refused by Tencent, which fears it will degrade the gaming experience.
Apple increasingly firm, even in China
These actions are considered “unusually aggressive” on Apple’s part in China. They could stir up tensions at a time when the company’s business practices are already in the sights of antitrust regulators around the world. But Apple is sticking to its guns. A spokesperson reiterated that its rules require that all digital goods be sold through its in-app payment system. Any circumvention exposes it to rejection by App Review.
It remains to be seen whether the Chinese giants will bow to Apple’s pressure. They could be tempted to retaliate by exploiting the growing discontent of developers over the 30% commission, which many consider excessive. Tencent, the world’s largest developer, will not let this happen, especially if the Chinese government supports it. The chess game may only be beginning.