Apple and Tencent Reach Deal to Let WeChat Users Dole Out Tips
January 15 2018 - 7:15AM
Dow Jones News
By Yoko Kubota and Alyssa Abkowitz
BEIJING-- Apple Inc. and Chinese technology giant Tencent
Holdings Ltd. have settled their tiff over tips, allowing users of
Tencent's popular WeChat messaging app to resume giving monetary
gifts to their favorite video-streaming stars and content
creators.
The tipping function was suspended last year after a dispute
between Apple and Tencent on the terms. Apple contended the tips
amounted to in-app purchases, entitling it to a 30% cut of the
amount transferred. Tencent balked, saying it didn't get any
revenue itself and provided the service at no cost as a means to
build engagement.
At a developers' conference in Guangzhou on Monday, WeChat
creator Allen Zhang said the two companies had reached an accord
that will allow transfers to resume. He said WeChat will tweak the
platform so the tip will be paid to individual content creators,
but didn't provide other details.
"In the past, companies like Apple might have had a difficult
time understanding China-specific features," Mr. Zhang said,
according to a transcript of his remarks provided by Tencent. "We
now all share a mutual understanding and we'll soon bring back the
"tip" function."
Apple representatives had no immediate comment.
Apple changed its App Store rules in September to allow users to
send money gifts to other users without Apple taking any cuts. But
gifts must be just that; any content or services contingent on
users giving a "gift" will be considered a purchase and Apple will
take a cut.
Tencent didn't respond to requests for details of the new
arrangement, and it wasn't clear if Apple will get any money from
the transfers.
Apple has taken several steps recently to protect its market and
its standing in China, such as introducing a built-in ability on
its operating system to scan QR codes that are ubiquitous in China.
It also created a new managing director post to oversee China
operations.
Apple last year also shut down hundreds of apps that allowed
users to access blocked websites.
A recent editorial in the state-run People's Daily held up Apple
as a model corporate citizen, contrasting the company favorably
with hotel chain Marriott International Inc. and other companies
which recently have listed Taiwan, Tibet, Macau and Hong Kong as
countries separate from China on their Chinese websites.
Xiao Xiao contributed to this article.
(END) Dow Jones Newswires
January 15, 2018 07:00 ET (12:00 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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