Date
26 September 2018
Following a "mutual understanding" between Apple and Tencent, WeChat users will be able to resume doling out monetary gifts to their favorite content creators. Photo: Bloomberg
Following a "mutual understanding" between Apple and Tencent, WeChat users will be able to resume doling out monetary gifts to their favorite content creators. Photo: Bloomberg

Apple, Tencent reach deal over WeChat ‘tipping’ feature

Apple and Tencent have reached a deal that will allow the users of WeChat, Tencent’s popular messaging app, to resume giving in-app monetary gifts to content creators, the Wall Street Journal reports.

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, according to the newspaper.

WeChat will tweak the platform to ensure the tip will be paid to individual content creators, Zhang said.

“In the past, companies like Apple might have had a difficult time understanding China-specific features,” the Journal cited Zhang as saying, citing a transcript of his remarks provided by Tencent.

“We now all share a mutual understanding and we’ll soon bring back the “tip” function.”

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 percent 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, the report noted.

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.

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RC

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