Tencent Holdings, a major Chinese technology company, has reportedly been in discussions with Apple regarding revenue sharing from its WeChat mini games. This news was revealed during Tencent’s earnings call on Wednesday, August 14. The discussions confirm previous reports that Apple has been pressuring Tencent to change its apps to close a loophole that allows developers to collect payments from users without paying a commission to Apple, as reported by Bloomberg.
During the earnings call, Tencent’s Chief Strategy Officer James Mitchell mentioned that the company is considering adding in-app transactions via Apple’s iOS payment system. This move would allow Apple to take a cut of those transactions, benefiting developers, users, Apple, and Tencent. Mitchell emphasized the importance of reaching a mutually beneficial agreement, stating, „We want to make it available on terms that we think are economically sustainable, that are also fair.“ The discussions between Tencent and Apple are ongoing, with hopes for a positive outcome.
Currently, Tencent does not monetize its mini games through in-app purchases on iOS. However, during the second quarter, the company saw a significant increase in gross receipts from these games, indicating their growing popularity among users. This growth has likely prompted Apple to push for a revenue-sharing agreement with Tencent.
Apple’s pressure on Tencent is part of a broader effort to enforce its guidelines on in-app purchases and ensure that all digital goods are sold through its platform. The tech giant has also targeted other companies, such as ByteDance, the maker of the Douyin app, in an attempt to close loopholes that allow developers to bypass Apple’s payment system.
In response to Apple’s demands, Tencent and other companies are facing the challenge of balancing their own interests with Apple’s guidelines. While Apple aims to maintain quality and security within its app ecosystem, it must also navigate regulatory scrutiny from various authorities around the world.
The recent approval granted to Spotify by Apple to display pricing information for European Union users in its iOS app highlights the ongoing tension between tech companies and Apple’s strict policies. Similarly, Patreon, an entertainment subscription platform, announced that it will be required to use Apple’s in-app purchasing system and remove all other billing systems from its iOS app starting in April.
Overall, the discussions between Tencent and Apple regarding revenue sharing from WeChat mini games reflect the complex dynamics at play in the tech industry. As companies navigate regulatory challenges and seek to maximize revenue opportunities, finding a balance between competing interests will be crucial for future collaborations and partnerships.