Apple-Tencent Deal Opens 15 % Cut On Wechat Sales
A landmark agreement between Apple Inc. and Tencent Holdings Ltd will allow Apple to collect a 15 per cent commission on payments made within WeChat's mini games and mini apps on iPhones, marking a significant shift in the Chinese digital ecosystem. Under the deal, Apple will handle the payment processing for qualifying“mini-apps” embedded within WeChat and take half of its standard 30 per cent App Store fee.
The adjustment comes as mini apps-lightweight applications hosted inside larger platforms-have grown rapidly in China, particularly within WeChat, which boasts over one billion monthly users. Observers estimate that the mini-game component alone generated 32.3 billion yuan in Tencent's social network revenue for the September quarter, underscoring the magnitude of potential earnings at stake.
Apple's move is embedded in a broader initiative to reduce its standard in-app purchase commission for mini-apps globally to 15 per cent, provided developers adopt Apple's age-range declaration technology and other software requirements. This upgrade aims to align with evolving regulatory scrutiny in multiple jurisdictions and to encourage the adoption of mini-apps within the App Store framework.
Tencent, which previously operated outside Apple's payment-share regime for many of its in-app transactions, had signalled that discussions around“economically sustainable” terms were underway. Apple had insisted that Tencent close loopholes that allowed developers to direct users away from in-app payment flows-an issue that had long blocked Apple's participation in WeChat's payment ecosystem.
On an earnings call, Tencent president Martin Lau acknowledged the longstanding dialogue with Apple, noting that both companies sought to“make the mini-game ecosystem more vibrant.” The final agreement reflects progress on that front.
See also AtlasEdge Wins €253 m for Lisbon ExpansionMarket analysts view the deal as a strategic win for Apple in China, where its handset share has been under pressure from local rivals such as Xiaomi Corp and Huawei Technologies Co.. By participating in WeChat's vast mini-app ecosystem, Apple stands to unlock a previously inaccessible revenue stream while reducing friction in its App Store model.
At the same time, the concession to a lower fee rate suggests Apple is willing to trade margin for access-a departure from the traditional 30 per cent cut it has demanded from most App Store transactions. The 15 per cent figure aligns Apple with its own revised global policy for mini-apps, and may pave the way for similar arrangements in other markets where super‐app platforms dominate.
For Tencent, the agreement reduces regulatory risk by aligning with Apple's standards and opening up an approved payment processing route on iOS. It also offers stability amid intensifying scrutiny from Chinese regulators around platform behaviour and digital competition. Earlier this year, Reuters reported that Apple's negotiations with Tencent had entered a“delicate dance” as Apple sought a share of revenue from WeChat's mini games while balancing its market position in China.
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