Apple pushes Tencent, ByteDance to plug external payments- report
Apple (NASDAQ:AAPL) is pressing Tencent (OTCPK:TCEHY) (OTCPK:TCTZF) and ByteDance (BDNCE) to stop in-app creators from accepting payments outside its App Store ecosystem, Bloomberg reported, citing people familiar with the matter.
The tech company has been pushing China’s popular app makers to plug the gaps that let users use external payment systems and bypass its App Store and typical 30% commission.
It said in May that it could reject essential updates from WeChat unless the developer addressed the issue. Later in the year, Apple (AAPL) asked that the company disable an in-game messaging feature that was being used to share payment links to users. In June, Apple reportedly told ByteDance it would not accept updates to its Douyin app unless it took similar actions.
The iPhone-maker’s 30% cut on App Store purchases has drawn scrutiny from regulators worldwide, with Apple (AAPL) facing legal challenges in the U.S., Europe, Japan, and South Korea.
However, China has been more friendly towards Apple’s policies against external payments. In May, a Chinese court reportedly dismissed a local consumer’s case against Apple’s (AAPL) commission, noting that the company had not abused its status despite dominating the App Store.
Apple has not received as much relief elsewhere. It faces a landmark antitrust case at home, with the U.S. Department of Justice alleging that the company has violated the Sherman Act by using its iPhone to prevent other companies from offering competitive services.
In Europe, the company dramatically revamped its iOS, Safari, and App Store offerings in a bid to comply with the Digital Markets Act.
Apple (AAPL) shares were down around -2% premarket on Friday.