New research shows that TikTok, owned by ByteDance, is giving some users a link to a website to buy coins for tipping creators. Usually, these coins are purchased inside the app, which includes a 30% fee to Apple.
This feature might be hidden from many users, possibly because it is intended for specific groups like testers or those who spend a lot.
Those with access are prompted to “recharge,” or buy more coins, through tiktok.com. Although these images were found in the iOS app by TechCrunch’s informant, David Tesler, it’s uncertain how many users can see this option or the timing and conditions of its availability.
TikTok might get banned from the app store next week
Why? It looks like they’re circumventing apple fee by directing users to purchase coins via external payment methods pic.twitter.com/VG8ihvsRmv
— David Tesler (@getdavenow) April 30, 2024
Sometimes, users see a message saying, “Try recharging on tiktok.com to avoid in-app service fees” with a “Try now” link. At other times, a pop-up may appear stating, “Try recharging on tiktok.com,” mentioning possible savings.
This message says, “You can save the service fee and get access to popular payment methods,” and has a large, red “Try now” button, or a smaller option that reads “Don’t show again.”
Users who click the link go to tiktok.com/coin to buy coins. Here, they can use different payment methods, such as Apple Pay or credit and debit cards. The website tells users that buying directly from TikTok saves them about 25% because of a smaller third-party service fee.
On the website, users can buy coin packages that start at 70 coins and go up to 17,500 coins, or they can choose a custom amount that is even higher. In the app, the available coin packages range from 20 coins to 16,500 coins, without the option to enter a custom amount.
This might indicate that TikTok shows the website links mainly to users who usually purchase big coin packs.
In 2022, Apple started allowing certain apps to include website links within the app, but this was restricted. Only “reader” apps, which mainly provide paid digital content (like Netflix, but not Facebook), can use these links for “account management.”
Also, apps using this External Link Entitlement cannot have in-app purchases through the App Store at the same time. It’s one or the other.
Since TikTok still lets most of its users make purchases inside the app, it appears it’s not following the External Link Entitlement rules, even if it were allowed an exception (which would be unexpected).
Currently, neither TikTok nor Apple have responded to requests for comments. TikTok’s support documents state that coins can be bought and recharged through the App Store and Google Play on mobile devices.
Tesler pointed out that when Fortnite added a feature to bypass Apple’s in-app purchases, Apple removed the app from the App Store.
It is not known what action, if any, Apple might take against TikTok now, especially with the current political issues surrounding the app based in Beijing.
In 2020, Fortnite was removed from the app store for a similar interface in which they presented users with an option to bypass apple in-app purchases pic.twitter.com/LLcilXEUQb
— David Tesler (@getdavenow) April 30, 2024
Initially, Biden paused the move to ban the app until a bipartisan bill was approved by both the House and the Senate.
What we think?
I think TikTok might get into big trouble with Apple. If TikTok keeps letting people buy coins outside the app, Apple might remove TikTok from the App Store, like they did with Fortnite.
This could be a huge problem for TikTok, especially with the new U.S. law trying to ban it. TikTok might fight this in court, but it’s hard to say if they will win. The future looks really uncertain for TikTok.
