Apple Tax War Escalates: ByteDance and Tencent Team Up to Challenge Apple's Dominance

Apple Tax War Escalates: ByteDance and Tencent Team Up to Challenge Apple's DominanceRecently, the conflict between Apple and WeChat and Douyin has intensified. The core of this dispute is the controversial "Apple tax

Apple Tax War Escalates: ByteDance and Tencent Team Up to Challenge Apple's Dominance

Recently, the conflict between Apple and WeChat and Douyin has intensified. The core of this dispute is the controversial "Apple tax." Apple is putting pressure on Tencent and ByteDance, demanding they fix payment loopholes in their systems, otherwise they will refuse to provide update services. This means that Apple users may face the risk of not being able to use WeChat and Douyin. The root of this conflict lies in the 30% payment commission charged by Apple, known as the "Apple tax."

Apple tax has long caused massive controversy. Ordinary consumers believe that Apple devices are already expensive, but they have to pay an additional 30% commission on virtual payments, which is undoubtedly a predatory clause. What makes things more infuriating is that the Chinese market is where Apple charges the highest commission, far exceeding the 17% in Europe and the 27% in the US. Data shows that in 2023, Apple's total Apple tax revenue reached 160.8 billion yuan, with China contributing 40 billion yuan, equivalent to Apple fleecing the Chinese market.

To circumvent the Apple tax, ByteDance and Tencent jointly developed external links that allow users to bypass Apple's payment system, avoiding the 30% surcharge. While this move benefits developers and users, it has angered Apple. Apple believes that its "making money while lying down" model has been disrupted and has taken strong measures to threaten to stop updating WeChat and Douyin, forcing these two companies to surrender.

This Apple tax battle is not an isolated incident but rather a long-standing protest against Apple's monopoly. The 30% Apple tax is exorbitant in any industry. Users who purchase goods on Apple devices actually spend far more than those using Android devices. Over the years, the accumulated extra expenses are significant. China has a vast population base, and the 30% Apple tax multiplied by 1.4 billion people means that Apple can make a huge profit.

To reduce the Apple tax, the EU government fined Apple $2 billion on antitrust grounds and lowered the Apple tax to 17%. This successful case has also prompted countries like Japan and South Korea to follow suit, although the intensity is not as strong as the EU, the tax rate has also been lowered to 27%, and it is likely to be further reduced in the future.

Tencent and ByteDance joining forces to confront Apple is an attempt to break Apple's monopoly. As leaders in China's internet industry, they have a strong user base and global influence. If Apple insists on confronting them, the ultimate result could be a lose-lose situation.

This dispute has also sparked reflection: Apple phones are not the only option in the Chinese market. If Apple continues to implement predatory terms, users can choose other phone brands. Apple must realize that in a fiercely competitive global environment, relying solely on high Apple tax to make profits will only harm user experience and ultimately lead to a decline in market share.

Currently, ByteDance and Tencent have not yet made formal responses, but this Apple tax battle has only just begun. This dispute is not merely about the fight for external links but also about a fair and transparent internet ecosystem. The future direction will depend on Apple's attitude and the response strategies of Chinese internet companies. The final outcome will affect the entire internet industry ecosystem and provide lessons and inspiration for other countries.

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