“Apple Inc. and Chinese technology giant Tencent Holdings Ltd. have settled their tiff over tips, allowing users of Tencent’s popular WeChat messaging app to resume giving monetary gifts to their favorite video-streaming stars and content creators,”Yoko Kubota and Alyssa Abkowitz report for The Wall Street Journal.

“The tipping function was suspended last year after a dispute between Apple and Tencent on the terms. Apple contended the tips amounted to in-app purchases, entitling it to a 30% cut of the amount transferred. Tencent balked, saying it didn’t get any revenue itself and provided the service at no cost as a means to build engagement,” Kubota and Abkowitz report. “At a developers’ conference in Guangzhou on Monday, WeChat creator Allen Zhang said the two companies had reached an accord that will allow transfers to resume.”

“Apple changed its App Store rules in September to allow users to send money gifts to other users without Apple taking any cuts,” Kubota and Abkowitz report. “But gifts must be just that; any content or services contingent on users giving a ‘gift’ will be considered a purchase and Apple will take a cut.”

Read more in the full article here.

MacDailyNews Take: This will, of course, only help further increase iPhone sales in China.

SEE ALSO:
Apple’s iPhone 7 Plus was the 2nd-best selling phone in China last year; Apple was only foreign brand in the top ten – January 15, 2018
Apple approves Tencent’s WeChat Pay for App Store purchases in China – August 31, 2017
Apple goes to war with Tencent’s WeChat – May 18, 2017
Courting controversy, Apple tells several Chinese social-networking apps to disable their ‘tip’ functions – May 18, 2017