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TikTok Tests Web Purchases to Avoid App Store Fees

POSTED ON May 1, 2024 •   Uncategorized      BY Samuel O . Adeniyi
TikTok App | Photo Credit: CBS News

TikTok appears to be testing a feature that bypasses Apple's App Store commissions, according to recent findings by TechCrunch.

The popular social video app, owned by ByteDance, is reportedly offering some users the option to purchase digital coins used for tipping creators via a link to its website rather than through in-app purchases, which typically incur a 30% commission payable to Apple.

The feature, which seems to be selectively available to certain users, presents them with a prompt encouraging them to "recharge" their coins via tiktok.com.

Screenshots shared by TechCrunch tipster David Tesler suggest that this option may be targeted at users who have previously made substantial coin purchases.

When users follow the provided link to tiktok.com/coin, they are directed to a web view where they can buy coin packs using various payment methods, including Apple Pay, debit, or credit cards.

The website highlights potential savings of around 25% compared to in-app purchases, citing a lower third-party service fee.

Interestingly, the coin packs available on the web range from 70 to 17,500 coins, including the option for custom amounts. In contrast, within the app, users can only purchase packs starting from 20 coins up to 16,500, with no provision for custom amounts.

This discrepancy suggests that TikTok may be targeting users who typically make larger coin purchases.

While Apple allows certain apps to include links to their websites for account management purposes, this privilege is typically restricted to "reader" apps that provide access to paid digital content.

TikTok's use of external links for purchasing coins appears to diverge from these guidelines, potentially putting it in violation of Apple's policies.

Neither TikTok nor Apple has reacted to this development. However, the situation raises questions about the potential repercussions for TikTok, particularly given its ongoing political challenges in the United States. 

President Biden recently signed a bill into law aimed at banning the app, though TikTok has vowed to challenge the ban in court, echoing similar actions taken during the Trump administration.

The development underscores TikTok's efforts to navigate complex regulatory landscapes and optimize its revenue streams, even as it faces mounting scrutiny and regulatory hurdles.

As the situation unfolds, both users and industry observers will be watching closely for further developments and potential responses from Apple and regulatory authorities.

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