Tensions are rising between Apple and Chinese technology giants Tencent and ByteDance. According to the Bloomberg report, the iPhone maker’s aggressive moves in China threaten to alienate creators in a critical arena.
In May, the tech giant warned Tencent’s WeChat, a super-app allowing Chinese users to message, access social media, and make payments from their mobile, to delete links that mini-game developers use to accept payment outside Apple’s platform.
Tencent agreed to shut down a network of links used by developers. However, the company demands further security measures, such as disabling in-game chat to prevent users from bypassing the 30% commission. Tencent has not agreed to this request, arguing that this change would adversely affect its users. Yet, the company has informed game developers that their business model may not exist in the future.
Another challenging app was ByteDance’s Douyin, equivalent to TikTok in China. Similar loopholes exist in Douyin, and Apple refused to update the app unless these concerns were met. ByteDance backed down in June and started an in-app purchase program that allows the company to collect commission.
Huawei Technologies’ new Harmony ecosystem, which exempts Tencent’s WeChat, also levies a commission on app developers. This new ecosystem adds another complication and threat to the delicate relationship between platforms.
Apple and the China market
The company reported a 6.5% slide in Greater China revenue for the June quarter. Chinese tech giants are incredibly dominant in the internet content such as games and videos, with the added power of their own commissions and creators. Despite the lack of popularity and troubles with in-app purchases, Apple CEO Tim Cook is still hopeful for a long-term relationship with the Chinese market.
