Apple warns China: Pay 30% on cash transfers for violating App store policy

Apple has warned several Chinese social networking apps to disable their 'tipping' functions

Apple has reportedly warned several Chinese social networking apps to disable their "tipping" functions because it is in violation of the company's App Store rules.

The iPhone maker also said that if the companies fail to disable the fuction, it would start collecting 30 per cent on all cash transfers, a report in Wall Street Journal said late on Friday.

To commend app developers on a job well done or aid their creation, Chinese users can tip them whatever they wish to. The cash is immediately transferred between the parties.

According to the report, Apple has been sharing revenue on all purchases with app developers.

 

In most cases, the split is 70-30, with app developers taking the larger share.

Developers who do not like the idea of sharing 30 per cent of their revenue with Apple have no choice but to accept it or remove their apps from the company's application marketplace, the report added.

Apple has now asked the developers to comply with its demands or face the possibility of app updates not hitting the App Store.

The Cupertino-based company even warned that it could remove their apps from its App Store if they fail to comply to the rules.