TikTok seems to be finding ways to circumvent the App Store to reduce expenses on commissions. Recent findings reveal that the social video app, owned by ByteDance, is offering certain users a link to a website where they can purchase coins used for tipping digital creators. Typically, these coins are acquired through in-app purchases, which entail a 30% commission payable to Apple.
This feature might be concealed from most users intentionally or may only be visible to specific groups such as testers or high-spending individuals. Those who have access to this new option encounter a prompt encouraging them to "recharge" – essentially, to buy more coins – via tiktok.com. Although these screenshots were uncovered within the iOS app by TechCrunch's David Tesler, it remains unclear how many TikTok users are exposed to them, or under what circumstances.
Tesler notes that the option to purchase via the web was presented to an account that had previously bought a significant amount of coins.
In some instances, users are presented with a screen displaying a message like "Try recharging on tiktok.com to avoid in-app service fees," accompanied by a "Try now" link. Alternatively, they might receive a pop-up suggesting "Try recharging on tiktok.com," with additional information about potential savings. This message reads, "You can save the service fee and get access to popular payment methods," followed by a prominent "Try now" button or a less conspicuous option labeled "Don't show again."
Users who follow the provided link are directed to the website for purchasing coins: tiktok.com/coin. Here, they can make payments using various methods, including Apple Pay or debit/credit cards. The website informs users that buying directly from TikTok can save them around 25% "with a lower third-party service fee."
On the website, users can buy coin packs ranging from 70 to 17,500 coins, or even input a custom (higher) amount. Conversely, within the app, coin packs start at 20 coins and go up to 16,500, with no option for a custom amount.
This suggests that TikTok may only be displaying web links to users who typically purchase larger coin packs at once.
Although Apple began permitting select app developers to include website links within their apps in 2022, the use case was restricted. Only "reader" apps – those providing access to paid digital content as their primary function (e.g., Netflix, not Facebook) – are eligible to offer such links for "account management." Additionally, apps using the External Link Entitlement cannot provide in-app purchases via the App Store. It's a binary choice.
Considering that TikTok is still offering most users the option to buy via in-app purchases, it appears to be deviating from the rules of the External Link Entitlement, even if it had been granted an exception (which would be surprising).
Both TikTok and Apple have yet to respond to requests for comment. TikTok's help documentation regarding coins states they are available for purchase and recharge through the App Store and Google Play on mobile devices.
Tesler pointed out that when Fortnite introduced an option to bypass Apple's in-app purchases, Apple removed the app from the App Store. It remains uncertain what action, if any, Apple will take against TikTok now, given the current geopolitical tensions surrounding the Beijing-based app.
TikTok's future in the U.S. is uncertain, as President Biden has signed a bill into law to ban the app. However, the company intends to contest the ban in court, as it did previously under President Trump. Initially, Biden had put the ban on hold until a new bipartisan bill passed both the House and Senate.