Screenshots suggest TikTok is circumventing Apple App Store commissions
TiIt appears that TikTok may be circumventing the App Store to reduce costs associated with commissions. Recent findings indicate that the social video platform, owned by ByteDance, is offering certain users a link to a website where they can purchase the coins used for tipping digital creators. Traditionally, these coins are acquired through in-app purchases, which entail a 30% commission fee payable to Apple.
This feature seems to be discreetly presented to select users, potentially as part of a targeted group such as testers or high-spending individuals. Users who have access to this option encounter a prompt encouraging them to “recharge” their coins by purchasing them via tiktok.com. While these findings were initially uncovered within the iOS app by TechCrunch’s David Tesler, it remains unclear how widespread this feature is or the criteria for its display.
According to Tesler, the web-based purchasing option appeared on an account with a history of significant coin purchases. This move suggests TikTok’s efforts to explore alternative avenues for coin acquisition, potentially bypassing the traditional in-app purchase method to mitigate commission costs.
Image Credits: Screenshot from TikTok app
In certain instances, users encounter a screen featuring a message like “Try recharging on tiktok.com to avoid in-app service fees,” accompanied by a clickable “Try now” link. Alternatively, they might receive a pop-up notification urging them to “Try recharging on tiktok.com,” with additional information highlighting potential savings. This message emphasizes the ability to bypass service fees and access popular payment methods.
Users are presented with a conspicuous “Try now” button in bold red, or a less conspicuous option allowing them to opt out of future prompts, labeled “Don’t show again.” These prompts aim to encourage users to explore the option of purchasing coins through TikTok’s website, potentially offering a cost-saving alternative to in-app purchases.
Image Credits: Screenshot from TikTok app
When users click on the provided link, they are directed to the TikTok website for purchasing coins: tiktok.com/coin. Here, users have the flexibility to make payments through various methods, including Apple Pay, debit, or credit cards. The website explicitly highlights the cost-saving benefits, stating that purchases made directly through TikTok can save users approximately 25% compared to in-app purchases, thanks to lower third-party service fees.
On the website, users can choose from a range of coin packs, starting from 70 coins up to 17,500 coins. Additionally, there’s an option to enter a custom amount for those who wish to purchase higher quantities. In contrast, within the app, coin packs are available starting from 20 coins and go up to 16,500 coins, with no provision for custom amounts. This difference in available options underscores TikTok’s strategy to incentivize users to utilize the web-based purchasing option, which offers a wider selection and potential cost savings.
Image Credits: Screenshot from TikTok app
The selective display of web links by TikTok may indeed be targeted towards users who typically purchase larger coin packs, suggesting a tailored approach based on user behavior.
Regarding the use of external links within apps, Apple introduced a limited allowance for select apps to include links to their websites from within the app interface starting in 2022. This capability is primarily reserved for “reader” apps, which primarily offer access to paid digital content (e.g., Netflix) rather than apps like Facebook. Apps utilizing this External Link Entitlement are constrained by Apple’s guidelines, which stipulate that they cannot offer in-app purchases through the App Store concurrently.
Essentially, it’s an either/or scenario—apps must choose between facilitating transactions via the App Store or directing users to external websites for purchases. This framework underscores the regulatory boundaries set by Apple to maintain control over in-app transactions and ensure compliance with its policies.
Typical IAP flow. Image Credits: Screenshot from TikTok iOS app
The apparent offering of both in-app purchases and external web links by TikTok raises questions about its adherence to Apple’s External Link Entitlement rules, especially if it has been granted an exception—a scenario that would indeed be surprising. Despite requests for comment from both TikTok and Apple, clarification on this matter remains elusive.
TikTok’s help documentation regarding coin purchases indicates that they are available for both purchase and recharge through the App Store and Google Play on mobile devices. This contradicts the notion of exclusively routing users to external websites for purchases.
David Tesler’s observation regarding Fortnite’s attempt to bypass Apple’s in-app purchases and subsequent removal from the App Store serves as a cautionary precedent. Given the ongoing geopolitical tensions surrounding TikTok, it remains uncertain what action, if any, Apple will take in response to TikTok’s apparent circumvention of in-app purchase guidelines. The evolving dynamics between TikTok and Apple underscore the complexity of regulatory compliance and the interplay between technology platforms and their policies.
Users are then able to bypass app store fees by paying with Apple Pay, CC or PayPal pic.twitter.com/Mg1c2AOmRx
— David Tesler (@getdavenow) April 30, 2024
TikTok’s future in the United States remains uncertain, as President Biden recently signed a bill into law that aims to ban the app. However, TikTok has announced its intention to contest the ban in court, echoing its previous legal challenges during the Trump administration. Initially, President Biden had postponed efforts to ban the app until a new bipartisan bill received approval from both the House and Senate. This ongoing legal battle reflects the complex regulatory landscape surrounding TikTok and underscores the company’s determination to continue operating in the United States despite political challenges.