Adeyemi Matthew 

Apple Inc. has approved an updated version of Tencent Holdings Ltd.’s WeChat app in anticipation of the iPhone 16 launch, allowing for additional time to negotiate the modifications that the U.S. company has requested for China’s leading social media platform.

According to sources familiar with the situation, Apple has accepted a WeChat update submitted by Tencent this week for the iOS platform.

This new version introduces enhanced features in WeChat Moments and live-streaming, as reported by individuals who requested anonymity due to the sensitive nature of the negotiations.

Bloomberg highlighted that this approval may alleviate concerns in China regarding a potential escalation in the dispute between Apple and Tencent over app store fees, which could have resulted in WeChat being excluded from iPhone 16 devices.

Central to the disagreement is Apple’s request for a share of the revenue generated through WeChat’s mini-games platform, where numerous independent developers provide casual gaming options.

Apple has urged Tencent to restrict links to external payment services within these mini-games to prevent developers from circumventing the standard 30% fee.

Additionally, Apple has sought to disable in-game messaging, a request that Tencent has deemed excessive.

Although Tencent has thus far resisted Apple’s demands, discussions between the two firms are ongoing. The goal is to find a mutually agreeable solution that could be reflected in future updates.

Analysts have confirmed that Tencent is negotiating a revenue-sharing model with Apple to facilitate payments within mini-games through Apple’s payment system, as mentioned in a recent earnings call.

Apple’s stringent management of its app ecosystem aims to uphold global quality and security standards; however, its more assertive approach in China this year, including similar warnings to ByteDance regarding in-app purchases, may risk alienating developers in this vital market.

In China, where over 1.4 billion people use WeChat for everything from bill payments to booking movie tickets, many of these transactions are exempt from Apple’s fees. Still, entertainment services like mini-games remain subject to the charges.

As developers of these games monetize through in-game purchases, some have found ways to bypass Apple’s system to boost margins. Apple is now pushing Tencent to eliminate this practice, known as “steering.”