Apple Cracks Down on Mini-Game Payment Loophole, WeChat Faces New Challenge

Apple Cracks Down on Mini-Game Payment Loophole, WeChat Faces New ChallengeIn the current iOS ecosystem, the in-app purchase revenue generated by mini-games, including those on WeChat and Douyin, does not go through Apple's own payment channels as it does for downloaded game apps. Consequently, Apple has pressured Tencent and ByteDance to close the mini-game payment loophole, preventing developers from redirecting users to external payment systems

Apple Cracks Down on Mini-Game Payment Loophole, WeChat Faces New Challenge

In the current iOS ecosystem, the in-app purchase revenue generated by mini-games, including those on WeChat and Douyin, does not go through Apple's own payment channels as it does for downloaded game apps. Consequently, Apple has pressured Tencent and ByteDance to close the mini-game payment loophole, preventing developers from redirecting users to external payment systems. This revelation has sparked widespread attention, with discussions about Apple vs. WeChat dominating social media. Many users have expressed their opinions, with some even voicing their support for WeChat.

This situation echoes a similar scenario that unfolded seven years ago between Apple and WeChat. In April 2017, WeChat officially announced that the "tipping" feature on its iOS public platform had been completely shut down. The reason: Apple demanded a 30% cut from every tip received on the iOS platform. After prolonged negotiations with no resolution, WeChat regretfully decided to disable the tipping feature on its iOS version. Other affected platforms included Zhihu, Yingke, Momo, Toutiao, and Weibo Q&A.

Following this incident, Ma Huateng, CEO of Tencent, led a delegation to meet with Apple CEO Tim Cook in the US to discuss the issue of WeChat tipping. Ultimately, Apple conceded on the tipping commission in exchange for broader cooperation with Tencent in areas like social media, mobile payments, and mobile gaming.

In September of the same year, Apple updated its agreement, allowing applications to enable independent users to send monetary gifts to other independent users without going through Apple's in-app purchase process. However, this came with two conditions: firstly, the sender must be acting entirely voluntarily; and secondly, the recipient must receive 100% of the gift amount, meaning no one else can take a commission besides Apple.

It's worth noting that the European Union has taken the most aggressive stance on Apple's "Apple Tax". The EU's Digital Markets Act has reduced the Apple Tax from 30% and 15% (for small developers earning less than $1 million annually) to 17% and 10% respectively.

Apple's latest move to close the mini-game payment loophole will undoubtedly test the relationship between WeChat and Apple once again. WeChat, as China's largest social platform, has established its mini-game business as a significant revenue source. A blockage by Apple would severely impact WeChat's commercial interests. Meanwhile, Apple faces pressure from both developers and users. If it continues to leverage its platform advantage to impose high fees, it could face antitrust investigations and user churn.

The outcome of this power struggle remains to be seen.