Apple is leveling up its efforts to tighten control over its App Store by targeting two of China’s tech giants. In recent months, the iPhone maker has demanded that Tencent and ByteDance address loopholes that allow in-app creators to bypass Apple’s payment system and direct users to external payment methods.
The company has been particularly aggressive with Tencent when it comes to the 30% commission, giving out a warning in May that WeChat updates could be rejected unless the messaging giant removed links used by mini-game developers to accept payments outside Apple’s platform.
ByteDance, the parent company of TikTok, has also faced pressure. Apple has threatened to block new Douyin updates (TikTok’s Chinese counterpart) if similar payment loopholes are not closed.
In May, the US firm warned Tencent it may reject essential WeChat updates unless the developer eradicates links that mini-game developers use to accept payment off Apple’s platform, the people said. Months later, Apple asked the company to disable a key in-game messaging feature that also diverted users. Tencent has yet to accede.
And in June, Apple told ByteDance it wouldn’t accept new updates from Douyin—TikTok’s Chinese cousin—unless it too plugged similar payment loopholes, one of the people said, asking not to be named and discussing private negotiations.
While Apple has consistently enforced its App Store guidelines globally, its actions in China are particularly noteworthy given
- the country’s immense market size and
- the influence of Tencent and ByteDance. This move could increase tensions between the US tech giant and its Chinese counterparts.
Regulators around the world scrutinize the practices of tech platforms, and the outcome of this dispute could have far-reaching implications for the industry. Do you think it’s a bad move from Apple, given that they are already losing ground in China?
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