Should Apple Charge Fees for Tipping on Social Networking Apps?

Recently, Apple’s decision to start taking a 30-percent cut on tips given by users of social networking apps has sparked heated debates in china.

Apple announced in its latest payment rules earlier this June that customers’ tips for digital content providers will now be regarded as an in-app purchase. therefore, the company will collect a handling fee of 30 percent on money transfer generated through the tipping function.

in-app tipping is a common practice in china. users of social networking apps often tip authors or developers, usually in small amount, to show their appreciation for digital contents or apps. For example, li huanxin runs a public account on wechat, china’s most popular instant messaging app, on which he shares his witty and ironic talk shows. over the past two years, he has received tips totaling 190,000 yuan ($27,900) from his fans.

Foreign live-streaming apps like Facebook live do not offer tipping; instead, Facebook let broadcasters show ads in their streams. Apple keeps 55 percent of the revenue.

As the rule was released, users were divided on whether Apple should charge such a fee. supporters say the rule is in line with the company’s long-time practice and Apple, as a business entity, has the right to make commercial decisions. But others maintain that tips on digital contents are essentially gifts. the move may lead to unfair competition, infringe on consumers’ rights, and test users’ loyalty.