Apple Tax Controversy Heats Up: Apple Pressures WeChat and Douyin, Challenging Mini Program Payment Models

Apple Tax Controversy Heats Up: Apple Pressures WeChat and Douyin, Challenging Mini Program Payment ModelsApple's strict control over the App Store and its 30% commission, known as the "Apple Tax," has long been a point of contention for developers and users alike. In recent years, the rise of mini programs on platforms like WeChat and Douyin, with their embedded payment functionalities, has presented a challenge to Apple's policy

Apple Tax Controversy Heats Up: Apple Pressures WeChat and Douyin, Challenging Mini Program Payment Models

Apple's strict control over the App Store and its 30% commission, known as the "Apple Tax," has long been a point of contention for developers and users alike. In recent years, the rise of mini programs on platforms like WeChat and Douyin, with their embedded payment functionalities, has presented a challenge to Apple's policy. Recently, Apple has been putting pressure on Tencent and ByteDance, demanding that they alter the payment models of their mini programs to ensure all transactions are completed through Apple's payment system, thereby preventing developers from circumventing the "Apple Tax."

Apple's "Standoff" with Tencent

In May this year, Apple warned Tencent that it would reject WeChat's necessary updates if it did not remove links that allowed mini program developers to receive payments outside of Apple's platform. Tencent later addressed this issue in a WeChat update in July, removing certain illegal payment links in mini programs. However, Apple did not back down. It further demanded that Tencent disable a chat function within a mini program game that also served as a payment gateway, as it led users away from Apple's platform.

Tencent responded by stating that the proposed changes would weaken product functionality and harm the services received by players. They informed game developers that their business models might be completely disrupted. Tencent has not yet agreed to Apple's demands, and the "standoff" over mini program payments continues.

Douyin Forced to Compromise?

In June, Apple also informed ByteDance that it would not accept any new updates to Douyin unless it too blocked similar payment loopholes. Following Apple's warning, Douyin launched an in-app purchase plan, allowing Apple to collect commissions.

This move seemingly indicated that Douyin had chosen to compromise and abandoned its attempt to bypass the "Apple Tax." However, during the 618 shopping festival this year, some Apple users discovered that they were unable to purchase virtual goods like membership subscriptions for music and cloud storage services, as well as knowledge-based and educational training products within Douyin's live stream. Users on Android devices were unaffected and could purchase these items normally.

This incident sparked speculation among netizens, suggesting that Apple might have blocked the purchase channels for these goods on iOS to force developers to use its payment system.

The "Apple Tax" Remains Controversial

The "Apple Tax" has been a subject of controversy for a long time. Many developers and users believe that Apple's 30% commission is exorbitantly high and that there is a lack of a fair competitive environment. They argue that Apple holds a dominant position in the mobile app market through the App Store and leverages this advantage to force developers to exclusively use its payment system, constituting an unfair monopoly.

Some developers attempted to circumvent the high commissions by creating mini games or programs that directed players to make payments outside of Apple's payment system. However, Apple has been actively trying to combat this behavior and has been tightening its control over the App Store.

The Event's Outcome is Under Scrutiny

Currently, Apple's "standoff" with WeChat and Douyin continues, and the outcome remains uncertain. If Tencent and ByteDance ultimately choose to compromise, it will alter the transaction logic within mini programs. Will developers and users face greater losses as a result? If WeChat and Douyin stand firm, will Apple take more drastic measures?

The "Apple Tax" has become a complex issue, involving the interests of developers, users, and platforms. It also raises concerns related to anti-monopoly and market competition. This "war" over mini program payments is set to continue, and its outcome will have a significant impact on the mobile internet ecosystem.