Apple Inc. is currently engaged in discussions with Tencent Holdings Ltd. The tech titan is urging Tencent to change the way its application, WeChat, circumvents App Store fees. This practice, according to Apple, is against their store policies and could be damaging to a balanced marketplace environment.
It’s been revealed that Tencent has been exploiting exceptions in the App Store rules. This allows them to bypass Apple’s standard 30% commission fee. They achieve this by steering users towards external payment platforms rather than using Apple’s standard in-app purchase procedure.
This issue is at the heart of the ongoing discourse between Tencent and Apple.
Apple’s challenge to Tencent’s App Store fee avoidance
The discussions, which have been ongoing for two weeks, are being led by Tencent’s Chief Strategy Officer, James Mitchell. However, despite intensive talks, Mitchell remains skeptical that a mutually beneficial agreement can be reached.
Interestingly, this is the first time Tencent has publicly admitted to the conversations with Apple. Apple has urged Tencent to address the dubious methods its developers use to evade the App Store’s commission. Primarily, Tencent uses in-app messaging services to navigate users to alternate payment processes, which directly violate App Store’s regulations.
In response to this, Tencent has assured Apple that it is willing to take all necessary steps to amend this issue. It has promised to perform a thorough internal audit of its developers to guarantee they are following the App Store’s guidelines.
The outcome of this intervention will be crucial not just for Tencent and Apple, but also for other developers and platforms across the globe who might be partaking in similar practices.
There are rumors that if Tencent continues to exploit these loopholes and remain non-compliant, Apple might block future updates for the WeChat application. Currently, both companies are working together to break the stalemate and resolve the unfolding situation.
