Apple is increasing pressure on Chinese company Tencent to close loopholes that allow its apps to bypass the App Store’s in-app purchase system without paying any fees to the platform.
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Currently, Tencent does not use Apple’s purchasing system for widgets and games available on WeChat. Instead, workarounds are used to redirect users to external payment systems, allowing the company to avoid paying Apple the 30% fee charged for payments through the App Store, reports 9to5Mac.
Tencent chief strategy officer James Mitchell told investors the company is committed to finding an “economically sustainable” and “fair” solution. “We want to make [in-app purchases] available on terms that we believe are economically sustainable and fair. Therefore, negotiations are now underway, and we hope that they will lead to a positive result,” Mitchell said. “But if the discussion does not move forward, then the current state of affairs will continue.”
Bloomberg previously reported that Apple was threatening to block future WeChat updates if Tencent did not comply with App Store rules. The core of the conflict is that Apple seeks to enforce its rules and receive a commission from all transactions made in applications distributed through the App Store. Tencent, in turn, is looking for ways to optimize costs and maintain the current business model for its messenger, which is one of the most popular communication systems in China.
The dispute is the latest in an ongoing battle between Apple and app developers over App Store fees. Previously, Apple faced similar claims from Epic Games and other companies.