Apple’s crusade against the tipping function continues; the company has updated its regulations concerning voluntary in-app tips for content creators, according to TechWeb (in Chinese). Apple stands by its decision that tips are in-app purchases (IAP) and reserves the right to take 30% of each transaction. Applications that refuse to obey the rule may be taken off the App Store
News aggregation app Toutiao and the Chinese version of Quora, Zhihu, have already reached a compromise with Apple, while Weibo Q&A has also agreed to make adjustments. Weibo Q&A’s onlookers function will use the in-app purchase mechanism to enable payments.
Apple’s decision to take 30% of every transaction will have a negative impact on content creators’ earnings which is why Weibo has decided that it will cut its share of revenue from 10% to 5% on iOS devices. Revenue payout will also be postponed since Apple’s payment cycle is between one and three months. Users on Android systems will not be affected by these changes.
The decision to take tax in-app tipping has caused a stir among China’s internet stars and content creators. The function was not just helpful for content creators, it has enabled apps such as Toutiao, Zhihu, Weibo, and WeChat to create a thriving community around user-generated content.
After Apple’s decision to implement the 30% tax in April, WeChat disabled its tipping function for iPhone users following failed attempts to reach a compromise with the US giant.