TikTok appears to be finding new ways to skirt Apple’s 30% commission on in-app purchases. Evidence suggests that select TikTok users are being directed to a company website to purchase “TikTok coins” (used to tip creators). This embedded web browser allows users to pay through alternative methods like PayPal, effectively dodging Apple’s fee structure.
Screenshots reveal an explicit message encouraging users to “avoid in-app service fees” by recharging coins on TikTok.com, with potential savings of around 25%. This strategy resembles Epic Games’ 2020 attempt to implement direct payments in Fortnite, ultimately leading to the game’s removal from the App Store and a protracted legal battle.
TikTok might get banned from the app store next week
— David Tesler (@getdavenow) April 30, 2024
Why? It looks like they’re circumventing apple fee by directing users to purchase coins via external payment methods pic.twitter.com/VG8ihvsRmv
Implications:
- TikTok vs. Apple Showdown?: This move could escalate tensions between TikTok and Apple, potentially mirroring the high-profile Epic Games conflict.
- Rules of the App Store: Apple’s insistence on controlling in-app purchases and collecting a substantial commission has long been a source of friction with developers.
- Targeting Big Spenders?: It appears TikTok may be initially targeting this alternative payment method to users who typically purchase large amounts of coins.
While the full scope of this test is unknown, it signals that TikTok is exploring ways to maximize profits and potentially challenge Apple’s App Store policies. We’ll have to wait and see how Apple responds and whether this leads to further escalation.
