[Global Network Technology Reporter Chen Jian] A few months back, Apple officially announced new regulations regarding rewards. Any in-app purchases made by users to original authors would be treated as in-app purchases, with Apple taking a 30% cut. Since these new rules came into effect, many apps have been impacted. Some chose to comply while others expressed dissatisfaction and resistance. Not long ago, there were rumors suggesting that Apple might face enough pressure to abandon its share of rewards.
The news about Apple canceling rewards didn't come directly from Apple itself. Recently, several Chinese internet executives have informed the media that Apple may no longer enforce the requirement for users to pass through the Apple App Store when choosing to "tip" original authors. This effectively halts the use of Apple's "In-App Purchase" (IAP) mechanism for such transactions.
Why did Apple decide to start taxing rewards?
On June 11, the App Store Review Guidelines updated on Apple's developer website noted that if developers wish to offer certain features in iOS apps—such as user subscriptions, in-game virtual currencies, game levels, premium memberships, or fully-featured versions—they must use in-app purchases.
Apple further clarified that iOS apps could use in-app purchases to let users tip digital content creators. These apps cannot use external links or other payment channels besides Apple's own.
Prior to this update, Apple had already mandated that all app purchases—whether music, novels, or videos—had to go through Apple's payment channels. However, this regulation did not explicitly cover "rewards."
China's standing as a global Internet powerhouse is evolving, and it is now a leader in innovation. The "rewards" feature can be seen as a localized function created in China, later adopted by many international apps. Twitter's Periscope, a video livestreaming service, allows anchors to earn income via tips. Even Twitch, the world's biggest livestreaming platform, launched a similar feature called "Cheer." Before the "rewards" model emerged, platforms like Facebook allowed anchors to earn primarily through ad displays.
However, Apple doesn't align with how Chinese developers view "tips." Apple doesn't see tipping as a way for one person to show appreciation and transfer money. Instead, Apple argues this is akin to purchasing content to read. According to Apple's App Store rules, any app purchasing music, novels, or videos must go through Apple's payment channels. While Apple Pay and Alipay are supported in China, WeChat Pay is not.
After Apple introduced its new rules for "rewarding," domestic developers were upset. Apple would deduct 32% of the tip amount as a fee, leaving the user with only 68%. This significantly harmed domestic developers' interests. Despite this, due to Apple's dominant platform position, platforms like WeChat Moments and YingKe continued to comply. However, developers had to make compromises. Today, Toutiao, Zhihu, and YingKe have altered their iOS users' payment methods for tips, while Tencent's WeChat took the strongest stance, completely removing the tip feature.
At the time, some analysts noted that Apple's involvement in the sharing of rewards was linked to its domestic business growth pressures. Apple's Q2 2017 earnings report showed a decline in iPhone sales to 50.76 million units, down from 51.19 million the previous year, failing to meet analysts' average expectation of 52 million. China was particularly hard hit. Apple's revenue in Greater China dropped 14.1% year-over-year to $10.73 billion. This marked the fifth consecutive quarterly decline in Greater China revenue, with year-over-year drops of 26%, 33%, 30%, 12%, and 14% over the past five quarters. Although Apple released new iPads and iMacs, these aren't its primary revenue sources. With the rise of Chinese smartphone manufacturers, Apple's influence in the Chinese market is being gradually overshadowed by Huawei, OPPO, and vivo. Apple's updates, such as the red-colored iPhone, haven't met consumer demands, and anticipation for the upcoming iPhone 10th anniversary model has put consumers in a观望attitude. Apple's revenue is under immense pressure, and it had to resort to this shortcut.
Why has Apple's stance changed?
According to foreign media reports, an unnamed Apple executive said that policy pressure is a significant reason behind Apple's decision to cancel the rewards. The World Wide Web has reported that a company has begun informing the Ministry of Industry and Information Technology about this issue, questioning the fairness of Apple's in-app purchase rules. However, the Ministry of Industry and Information Technology stated it is not currently involved in this dispute. But it appears multiple companies have raised concerns, bringing domestic regulatory pressure to bear on Apple.
On the other hand, the maturity of China's smartphone market is another factor. Although Apple's iOS platform has a solid reputation, Android dominates with the largest market share in China. Many Chinese people even own two phones. Additionally, on the Android platform, the "tipping" feature remains available. Whether it's WeChat or other platforms, the "tipping" feature has always existed, causing many developers and content creators to gravitate towards Android. This gives Apple, which is at a competitive disadvantage in the system platform race, an edge over its competitors. Whether the obtained share can compensate for potential long-term losses is also a key consideration for Apple.
Currently, some media have disclosed developer guidelines Apple plans to release, indicating that Apple may stop procuring behaviors like those seen on WeChat and Weibo. However, if major streaming platforms, knowledge payment services, etc., require additional fees from the platform, Apple might continue to charge a 30%.
“There’s no smoke without fire,†and often rumors eventually become reality. Apple's "rewards" function has faced opposition from numerous content creators and developers, and its rules, leveraging its dominant position, have been questioned as unreasonable. Currently, Apple remains a model for the tech industry, yet it is plagued by "irrational strength" and many practices have drawn criticism. I hope Apple can rely on continuous innovation to boost its profits rather than exploit its advantageous position.
If you have any questions or need further information, feel free to reach out!
4.35V High Voltage Battery,4.35V Battery,High Voltage Battery
Shenzhen Jentc Technology Co., LTD , https://www.phenyee.com