Apple is reportedly taking both Tencent and ByteDance to task over loopholes in their apps that allow them to dodge Apple’s 30% commission fee on in-app purchases.
Tencent’s online juggernaut WeChat and ByteDance’s Douyin are both reportedly in the firing line, with Apple “ramping up pressure” on both over the practice.
According to a new report, the pair are being pushed “to make fundamental changes to China’s most popular apps.”
Apple goes after WeChat and Douyin
As reported by Bloomberg, Apple “in recent months has demanded the two companies close loopholes that their in-app creators employ to funnel users to external payment systems.” Apple reportedly warned Tencent in May that it would reject updates to the app unless it gets rid of links used by mini-game developers to accept payments off-platform, which is banned under App Store guidelines. Apple also reportedly told Tencent it had to disable WeChat’s in-game messaging feature for the same reason, however, the company has yet to comply.
Likewise in June, Apple told ByteDance it would stop accepting Douyin (China’s version of TikTok) because of “similar payment loopholes.”
The report notes the move is “unusually aggressive” in the content of the market in China, and could “alienate creators in a key arena.” The move is also notable because it draws attention to Apple’s App Store business model, which has been dubbed anticompetitive in other markets, including the EU.
Apple’s stringent business model, which precludes developers from linking to external payment methods in most places, has been a point of contention in several lawsuits, the most high-profile example being the spat with Epic Games in 2020.
Blocking updates to these high-profile Chinese apps could impact well over a billion customers who rely on them. Especially WeChat, which is a “super app” that forms the backbone of China’s online arena as an app for social media, messaging, online payments, and more.
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