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Tencent Holdings and Apple have concluded lengthy negotiations regarding commissions on purchases within mini apps, with the U.S. tech giant agreeing to lower its fees to 15 percent for in-app purchases on Tencent’s popular super app, WeChat.
Apple announced the launch of the Mini Apps Partner Program yesterday, which aims to expand support beyond the existing App Store platform for apps that feature mini apps. This new initiative is designed to assist developers who host mini apps in growing their businesses and to increase the availability of mini apps on the App Store—all while delivering an excellent customer experience.
For apps with annual revenue exceeding $1 million on the App Store, Apple typically imposes a 30 percent fee on in-app purchases—commonly known as the “Apple Tax.” For apps earning less than $1 million per year, the fee is reduced to 15 percent. The commission rate for mini-programs is also set at 15 percent.
During a conference call yesterday, Tencent’s President, Martin Lau, confirmed ongoing discussions with Apple concerning in-app payment arrangements for WeChat, describing the talks as “constructive.” He noted that most revenue generated from mini games within WeChat comes from in-app purchases rather than advertising.
Back in August of last year, Apple pressured Tencent and ByteDance, the Chinese owner of TikTok, to close payment loopholes in mini games and discourage developers from directing users to external payment systems to avoid the Apple Tax.
The tension between the gaming and digital content sectors and app stores largely stems from the fact that app stores typically take around 30 percent in commissions—an amount the gaming industry views as excessive. Tencent’s management has previously expressed that, for both regulatory and commercial reasons, these fees should decrease or be adjusted over time.
In the third quarter, Tencent reported that revenue from WeChat mini games reached CNY 32.3 billion (roughly USD 4.6 billion). Over 80 percent of the more than 400,000 mini game developers are small teams with fewer than 30 employees.
The global debate over the Apple Tax continues to intensify, with the European Union recently lowering it to 17 percent. Japan introduced regulations last year mandating fee reductions, and about 55 Chinese consumers filed a joint complaint last month, accusing Apple of abusing its dominant market position.
Apple noted that revenue from service-related businesses, including the App Store, increased by 15 percent to reach a record USD 28.8 billion in the fiscal fourth quarter ending September 27, compared to the same period last year.
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