Apple is pushing Tencent and ByteDance to “close loopholes” that currently allow their apps to skirt the App Store’s in-app purchase system, according to a new report from Bloomberg. In new quotes this week, Tencent acknowledged its talks with Apple for the first time, saying it wants terms that it thinks are “economically sustainable” and “fair.”
As it stands, Tencent doesn’t use Apple’s in-app purchase system for mini apps and games that are available in WeChat. Instead, its creators use “loopholes to funnel users to external payment systems,” Bloomberg explains. This allows the company to avoid paying Apple the 30% commission it charges for App Store payments.
Speaking to investors this week, Tencent’s Chief Strategy Officer James Mitchell said that the company is in talks to enable in-app purchase support, but there are questions about whether the two sides will come to terms:
“We want to make it available on terms that we think are economically sustainable, that are also fair. And so that’s a discussion that’s underway, and we hope that the discussion leads to a positive outcome,” Mitchell said. “But in the event that discussion doesn’t progress, then the current status quo continues.”
Today’s comments from Mitchell mark the first time that Tencent has acknowledged its talks with Apple. Two weeks ago, a report highlighted how Apple is pressuring Tencent to block the loopholes its developers currently rely on to circumvent App Store commission. Tencent’s loopholes center around in-app messaging services to direct users to external payment platforms – a practice that is prohibited under the App Store Guidelines.
Apple has reportedly threatened to block future WeChat updates if Tencent fails to comply and close these long-running loopholes.
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