So-called super apps, which combine all sorts of services into one app, have not yet been a big issue in Europe and the United States. In China, however, they are the norm. Users there spend a lot of time on WeChat, called Weixin in China, to organize half of their lives – even though the main purpose of the app was originally to send text messages. TikTok operator Bytedance also wants to expand Douyin, as TikTok is called in its country, as a super app. This is now increasingly bringing both providers, Weixin’s mother Tencent and Douyin owner Bytedance, into a confrontation with iPhone maker Apple. This is related to the question of App Store commissions, which cannot be paid via super apps.
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Apple demands
Apple’s rules here are really simple: depending on the size of the sale, the company wants 15 or 30 percent of revenue from app sales, in-app payments and subscriptions, as long as it’s digital content. However, this hasn’t happened yet in the case of highly popular mini-apps and mini-games, which have millions of users on Weixin and Douyin. Apparently Apple doesn’t want to accept this anymore, it said in a Bloomberg report: The “loophole” must now be closed.
Apple has begun talks with Tencent and ByteDance over the world’s largest smartphone market. The threat: Future updates to Weixin or Douyin will not be released if the platforms continue to allow payments in mini-apps running on their own programs without Apple’s involvement. Apple also wants Tencent to disable an in-game messaging feature that can redirect users to other platforms.
Huawei needs money too
Apple’s first announcement dates from May, Tencent is said to have not yet responded. Apple has also launched similar action against ByteDance. There have also been threats of not allowing updates from Douyin if the payment backdoor is not closed. The iPhone maker is under pressure in the Chinese market. Recently, Apple had to admit another blow in sales in the – depending on how you count it – second or third largest market. In-app payments, which are big business, could help Apple tip the balance here.
Meanwhile, not only Apple, but also domestic providers such as Huawei are becoming app providers. They would also like to join there in the future as part of their “Harmony” ecosystem. However, the telecom giant has not yet dared to approach Tencent, and Weixin has apparently given up on it. Neither Tencent nor ByteDance commented on the conflict with Apple. The iPhone maker only announced that it has guidelines for digital goods and that Apple’s app review team also rejects apps that violate them.
(B.Sc.)
