TikTok may be scouring the App Store to save money on commissions. According to new findings, the ByteDance-owned social video app is presenting some of its users with a link to a website to purchase the coins used to tip digital creators. Typically, these coins are purchased through in-app purchases, which requires paying a 30% commission to Apple.
The feature may be hidden from most users, either by design or because it is only shown to users in a specific group, such as testers or high spenders. In any case, those who have access to the new option see a screen that encourages them to “reload”, that is, buy more coins, through tiktok.com. Although these screenshots were discovered in the iOS app by tipster TechCrunch, David TeslerIt’s not clear how many TikTok users see them or when or how they are displayed.
Tesler says the option to buy via the web was shown on an account that had previously purchased a large number of coins.
Image credits: Screenshot of the TikTok app
In some cases, users are shown a screen that includes a message such as “Try reloading on tiktok.com to avoid in-app service charges” followed by a “Try it now” link. Other times, a pop-up may appear that says “Try reloading on tiktok.com” with another message about potential savings. This one says, “You can save the service fee and get access to popular payment methods,” and is followed by a big red “Try now” button or a less prominent option that says “Don’t show again.”
Image credits: Screenshot of the TikTok app
Users who follow the link provided are directed to the website to purchase coins: tiktok.com/coin. From this web view, they can pay using a variety of methods, including Apple Pay or debit or credit cards. The website reminds users that purchases made directly with TikTok will save them around 25% “with a lower third-party service fee.”
On the website, users can purchase coin packs ranging from 70 coins to 17,500 coins, or even enter a custom (larger) amount. However, within the app, there are coin packs available from 20 coins up to 16,500 with no option for a custom amount.
Image credits: Screenshot of the TikTok app
That could suggest that TikTok only shows the web links to those users who typically purchase larger packs of coins at a time.
While Apple began allowing select app developers to add links to their websites from within the app in 2022, the use case was limited. The only apps that qualify to offer these lines of “account management” are what Apple calls “reader” apps, or those apps that provide access to paid digital content as their primary functionality. (Think: Netflix, not Facebook.) Additionally, apps that choose to use the external link right also cannot offer in-app purchases through the App Store. It’s an either/or situation.
Typical IAP flow. Image credits: Screenshot of the TikTok app for iOS
Since TikTok also offers most of its users the option to purchase via in-app purchases, it appears that it does not comply with the right to external link rules even if the exception had been granted (which would be surprising).
TikTok and Apple have not responded to requests for comment at this time.
tesler noted that when Fortnite inserted an option directing users to avoid Apple’s in-app purchases, before filing its antitrust lawsuit against the company, Apple banned the app from the App Store. It’s unclear what action, if any, Apple will take against TikTok now, given the current policy around the Beijing-based app.
TikTok’s current fate in the United States is uncertain, as President Biden has signed a bill into law to ban the app. However, the company said it plans to fight the ban in court, as it did before under President Trump. Biden had originally put the effort to ban the app on hold until a new bipartisan bill passed in both the House and Senate.
