Apple reportedly approved an update to Tencent Holdings’ WeChat app, just in time for the release of the iPhone 16.
The move by Apple allows for further negotiations between the two companies regarding changes that Apple has demanded for the social media platform, Bloomberg reported Thursday (Sept. 5), citing unnamed sources.
Apple’s approval of the WeChat update for the iOS ecosystem is expected to end speculation in China that the dispute between the two companies over Apple’s app store fees could have resulted in WeChat being excluded from the latest iPhones, according to the report.
The disagreement between Apple and Tencent centers around Apple’s demand for a share of the transactions made through WeChat’s mini-games platform, the report said. Apple wants Tencent to block links to external payment services within these mini-games and prevent developers from using the platform’s built-in messaging to direct gamers to other payment portals, thus avoiding paying Apple its usual 30% cut.
While Tencent has rejected Apple’s request to disable in-game messaging entirely, the company is still engaged in talks with Apple about a potential compromise for future updates, per the report.
Tencent Chief Strategy Officer James Mitchell said the company is negotiating a revenue-sharing deal with Apple to allow it to accept payments in mini-games using Apple’s system, according to the report. Mitchell expressed hope that the ongoing discussions would lead to a positive outcome, but if not, the current status quo would continue.
Apple’s policies in maintaining the quality and security of its app ecosystem are well-known worldwide, the report said. However, the company’s actions in China, including warning Tencent and ByteDance about in-app payment policies, have raised concerns about alienating creators in a crucial market.
WeChat is widely used in China, with nearly 1.4 billion people relying on the app for various purposes such as paying bills and booking movie tickets, per the report. However, while many payments made through WeChat are exempt from Apple’s fees, in-app content and other online entertainment, such as mini-games, are subject to the iOS charges.