Century War Between Apple and WeChat? Don't Panic, Let's Analyze Rationally

Century War Between Apple and WeChat? Don't Panic, Let's Analyze RationallyWith just a week left until Apple releases its new iPhone 16 series, Weibo hot searches have been dominated by the "conflict" between Apple and WeChat. Speculations and discussions range from "WeChat might not support iPhone 16" and "Apple might remove WeChat from its App Store" to "WeChat is confronting Apple" and "Apple-WeChat war," igniting strong emotions among netizens, even leading to calls for "choosing one over the other

Century War Between Apple and WeChat? Don't Panic, Let's Analyze Rationally

With just a week left until Apple releases its new iPhone 16 series, Weibo hot searches have been dominated by the "conflict" between Apple and WeChat. Speculations and discussions range from "WeChat might not support iPhone 16" and "Apple might remove WeChat from its App Store" to "WeChat is confronting Apple" and "Apple-WeChat war," igniting strong emotions among netizens, even leading to calls for "choosing one over the other." However, amidst the overwhelming trending topics and screenshots, we need to remain rational and carefully analyze the true situation behind this event.

The Origin of the Dispute: Apple's Pressure on "Apple Tax"

In early May, reports surfaced that Apple was pressuring WeChat and Douyin (TikTok in China), attributing the cause to "loopholes" identified by Apple in the mini-programs and games offered by these two platforms, enabling them to bypass App Store fees for in-game purchases. Apple insists that mini-game recharge payments should also be subject to App Store fees, known as the "Apple Tax."

As we know, in-app purchases of virtual items on the iOS platform must go through the App Store. WeChat and Douyin's mini-game recharges, however, bypass App Store review and fees by directing users to customer service chat windows, where they then send mini-program cards for payment. Apple argues that this practice violates App Store's established policies, hence the pressure on WeChat and Douyin to integrate mini-program and game payments into the App Store.

Rumors Spread: Apple Removing WeChat? WeChat Not Supporting New iPhones?

Since the latest updates for WeChat and Douyin on the App Store have remained stalled at two months ago, many speculate that their conflict with Apple has escalated, leading to conclusions like "Apple is going to remove WeChat" and "WeChat won't support new iPhones."

However, according to media inquiries with Apple customer service and WeChat, both parties denied receiving any related news. These speculations are unfounded and baseless.

Rational Analysis: Apple and WeChat's Game of Interests

While official statements remain unclear, we can rationally analyze how the conflict between Apple and WeChat might end.

Firstly, there's no irreconcilable conflict between Apple and WeChat; rather, they have a mutually beneficial relationship. WeChat, with its billion user base, is a national-level app that virtually every smartphone user relies on. Apple, on the other hand, has 250 million device users in China. They are interdependent, forming a massive mobile internet ecosystem.

Secondly, this conflict is fundamentally a game of interests. WeChat and Douyin's mini-game businesses are booming, and Apple is envious of their immense market potential, hoping to grab a piece of the pie. However, WeChat and Douyin's bypassing of App Store payment mechanisms does indeed violate Apple's established policies, giving Apple justification to demand compliance.

Historical Experience: Apple and WeChat's "Compromise"

Similar incidents have occurred in the past:

• In 2017, the "tipping" feature in WeChat Public Accounts was taken offline, as Apple deemed this revenue should also be subject to App Store fees. Ultimately, WeChat restored the tipping feature, continuing to use WeChat Pay for payments, and Apple eventually yielded.

• When WeChat mini-programs first launched, they supported floating windows on iOS, but this feature was removed in subsequent updates, likely a compromise by WeChat.

• To accommodate WeChat, Apple even made specific modifications at the code level, something unthinkable for other third-party apps. The custom code comments for WeChat in Apple's open-source codebase also reflect Apple's compromises for WeChat.

Future Outlook: Both Parties Reaching a New Balance

Based on historical experience, the relationship between Apple and WeChat is delicate, and neither can do without the other. This conflict of interests will ultimately end in compromise, and both parties will reach a new balance.

In August, Tencent's earnings call also affirmed that the company is exploring ways to provide in-app transactions through Apple's iOS payment system, which would allow Apple to take a cut from in-game purchases. Tencent currently doesn't monetize mini-games through iOS in-app purchases but is discussing whether to enable this function, which would benefit developers, users, Apple, and Tencent alike.

The "Apple Tax" Controversy: Global Conflict

This incident also reveals a shift in ordinary users' attitudes towards the "Apple Tax." Apple charges a 30% commission for applications exceeding $1 million in annual revenue on the App Store, sparking controversy in various countries and regions around the world.

Apple has made concessions in some areas, such as in the EU, where the Apple Tax has been reduced to a minimum of 10%, and apps are allowed to guide users to external payment channels, bypassing Apple's fees.

However, if Apple doesn't make adjustments in the Chinese market, the controversy surrounding the Apple Tax is likely to persist.

Rational Considerations: The Necessity and Future Trend of Apple Tax

Complete abolition of the Apple Tax is unrealistic, as App Store operation, review, and distribution all incur costs, and the Apple Tax is a significant revenue source for Apple.

Nevertheless, in the face of escalating conflict, Apple needs to make concessions and reduce commission rates, benefiting developers and the overall ecosystem, ultimately contributing to Apple's own growth.

Conclusion: Remain Rational, Don't Spread Rumors or Believe Them

In the face of various speculations and discussions online, we should maintain calm, rationally analyze the real situation behind the event, and avoid being misled by screenshots of unknown origin. The Apple-WeChat conflict will ultimately end in compromise, with both parties finding a new equilibrium. Regarding the "Apple Tax" controversy, Apple also needs to make adjustments to address the increasingly complex market environment.