Apple quietly drops practice of taking a cut on digital tipping after pressure in China
Analysts said the US company’s 30 per cent take had angered users in China where digital tipping is widespread, and had led to a dispute with internet giant Tencent
Apple will now allow users of its devices in China to send digital monetary tips to each other free of charge in a quiet reversal of its previous practice of taking a cut of the transaction, which had provoked outrage from internet content creators and led to a row with Chinese internet giant Tencent.
According to a recent update to the app store guidelines, Apple will allow users to send tips without going through the in-app purchases function, as long as the tips go fully to the receiver. The company takes a 30 per cent cut of all transactions that go via in-app purchases.
But the new policy will still require users to go through in-app purchases if they want to deposit currencies into an app first and use them to tip later – a common practice in popular live-streaming apps where broadcasters and performers have to share the tips with app developers.
Apple did not immediately reply to a request for comment.
“The new policy has come faster than I expected,” said Kitty Fok, managing director of IDC China, who believes Apple should further liberate purchase rules to benefit more app developers, as they are very important platforms to help push iPhone sales in China.
“It may affect their iTunes revenue, but it is more important to get a friendly partnership with Tencent,” she said.
