Apple and Tencent Reach WeChat Payments Agreement

Core Insights - Apple has reached a payments agreement with Tencent, allowing Apple to handle payments and take a 15% cut from purchases of mini games and apps on Tencent's WeChat platform [2][3] - The agreement is seen as a new revenue stream for Apple and alleviates pressure on Tencent, which had been negotiating with Apple for over a year [3] - The deal comes after Apple faced legal challenges in China regarding its app distribution and payment policies, with a lawsuit alleging abuse of market dominance [5][6] Group 1 - The new arrangement allows Apple to take a 15% commission, which is half of its standard 30% fee for in-app purchases [4] - WeChat has over 1 billion users, and mini games generated $4.5 billion in revenue for Tencent in the latest quarter [4] - Developers must comply with Apple's software requirements to qualify for the new payment structure [3] Group 2 - Apple was sued by a group of 55 Chinese users claiming that its policies are monopolistic, requiring payments to be made through its platform [5] - The attorney involved in the lawsuit had previously filed a similar case against Apple in 2021, which was dismissed and is now under appeal [6] - Apple's App Store developer billings reached $1.1 trillion in 2022, with over 90% of that amount going to developers without any commission paid to Apple [7]