PCV believes Tencent’s decision to suspend the tipping practice solves Apple concern for now, but may be revisited as the companies continue to grow and converge in this space.
April 21, 2017
Tencent Holdings Ltd closed a popular service on WeChat which allows iPhone users to offer tips to content creators, signaling the tension between the Chinese social networking giant and US tech company Apple Inc.
The move came as Tencent aggressively builds its own ecosystem by promoting paid reading on WeChat, which has about 889 million users. Meanwhile, Apple banks on iPhone users spending more within its iOS ecosystem to boost its service revenue.
Tencent said in a statement that it had to shut down the tipping service function to comply with new rules issued by Apple, which banned developers from including buttons or links that direct customers to purchasing systems outside of its iOS ecosystem.