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Chinese netizens demand anti-monopoly investigation into Apple after implementation of 30% in-app tipping charge

(People's Daily Online)    17:03, May 31, 2017

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Last month, China's social networking and messaging app WeChat closed the "tipping" function on its iOS version due to Apple's restrictions on third-party payment links. Soon after, Apple decided to take 30 percent of "tips" on other social networking apps as commission fees.

Many Chinese citizens fumed upon hearing the news, even going so far as to suggest that an anti-monopoly investigation be carried out based on Apple's alleged abuse. The tipping function on Chinese social networking platforms is free to use and allows people to send authors and other content creators tips via mobile transfers.

Social networking apps vs. iPhones

If Apple kicks major social networking apps out of its App Store, will you stop using iPhones or the apps themselves? Many netizens swore they would abandon iPhones, but not the apps. They are not willing to cut themselves off from the essential social networks. One netizen with the username "roro loves eating meat" said that both WeChat and iPhones can be viewed as tools. At present, no other apps can replace WeChat in daily life.

"If I could only choose one of the two, I would definitely choose WeChat," the netizen mused.

Another user, "Chenxuan Leo," pointed out that Apple is asking a lot of users' loyalty. The iPhone market share is shrinking as China's domestic mobile phone makers expands. Sophisticated users may turn increasingly to the Android system in response to Apple's behavior.

Apple suspected of abusing market dominance

"Amitabha 007" speculated that the biggest reason for Apple's 30 percent in-app tipping service charge is that the company's revenue in China is shrinking, and its product shipments are also declining.

Meanwhile, "Adiba-V" claimed that Apple's behavior is an abuse of its market dominance. The current mobile phone payment market was developed by WeChat and Alipay, thanks to years of subsidies. Apple wants to reap these same benefits after doing nothing to earn them, and to deploy this method against its competitors. Instead, Apple should offer users an improved Apple Pay service and a better customer experience.

Other netizens said that Apple classifying the tipping function as in-app purchase will enhance Apple Pay's dominant role in the iOS ecosystem. Many felt that China's State Administration for Industry and Commerce should conduct an anti-monopoly probe into the case. 

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Web editor: Du Mingming, Bianji)

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