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Apple may stop pushing for revenue cut on Chinese digital content creators

(People's Daily Online)    15:52, July 19, 2017

U.S. Internet giant Apple may stop imposing its 30 percent revenue cut on China’s digital content creators, after it required several Chinese apps to halt their tip functions on the iOS platform in April.

According to Thepaper.cn, Apple is considering giving up its 30 percent revenue cut on tips received by digital content creators in China. The tip function in Chinese messaging platforms allows users to send authors monetary tips via their digital wallet. The transaction was seen by Apple as in-app purchase, which is similar to buying games and musical products in the App Store. The company demanded that it receive a 30 percent cut on every tip transaction.

The report also noted that new rules have not yet been written, as the situation is “complicated.”

Tipping is a unique function created by Chinese messaging apps, including Tencent’s WeChat. Most Chinese digital content creators rely on the tip function as their main source of revenue, whereas in other nations, such as the U.S., content creators may include ads into their work.

Apple could not be reached for comment as of press time.

Apple’s decision to take a 30 percent cut on tips angered many Chinese and the nation’s tech companies, with many calling for an anti-monopoly investigation into Apple in May.

Foreign media outlets and digital experts have also expressed their displeasure with Apple's move, adding that such a greedy decision would jeopardize its share in the Chinese market even more.

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

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