A new report from Bloomberg indicates that Apple is pushing Tencent and ByteDance to get rid of ‘loopholes’ that allow their apps to bypass the App Store’s in-app purchase system. Tencent has reportedly claimed that it is in talks with the Cupertino company and wants terms that are “economically sustainable” and “fair”. Right now, Tencent doesn’t use Apple’s in-app purchase system for mini-apps and games available in WeChat. Reportedly, it uses loopholes to lead users to external payment systems. This allows Tencent not to pay the infamous 30% ‘Apple tax’.
Tencent is now in talks with Apple in order to come to terms. Tencent’s Chief Strategy Officer James Mitchell said that the discussion with Apple is underway, and if terms aren’t reached, the current status quo would continue.
Apple has reportedly threatened to block future WeChat updates if Tencent doesn’t comply though. These ‘discussions’ remind me of what happened with Epic Games, but hopefully, this case won’t be the same. Apple has power over the App Store (understandably, it made it), and it’s a tough opponent to fight. So here’s to hoping the two companies agree to a win-win situation.