TikTok could be breaking Apple App Store rules by dodging in-app purchase fees

Anurag Singh
TikTok stock image

TikTok is reportedly directing some users to buy coins from an external site to avoid the Apple App Store’s in-app purchase fees.

TikTok is presenting some users with a link to an external website to purchase coins that are used to tip creators. TikTok users are supposed to use Apple’s in-app purchases to buy coins. And for every purchase, TikTok pays a 30% commission to Apple, according to a report via TechCrunch.

The option to purchase coins through an external site isn’t available to everyone. TechCrunch’s tipster, David Tesler, shared screenshots of the new payment flow, noting that it was displayed to an account that had previously purchased a large amount of coins. This might suggest TikTok is currently testing the feature on those who have previously purchased coins.

As seen in the screenshots shared by Lesler, TikTok is showing a screen that includes the message “Try recharging on tiktok.com to avoid in-app service fees,” followed by a “Try now” link. Some users claim that state “Try recharging on tiktok.com” with another message about potential savings. “You can save the service fee and get access to popular payment methods,” reads one pop-up shared by TechCrunch.

Apple revised its App Store Guidelines earlier in January this year to allow developers to link to alternative payment systems in their apps. However, the Cupertino company still requires them to pay a 12% commission if they are a member of the App Store Small Business program and 27% if not.

TikTok is not a small business, so it should be paying Apple a 27% commission on external purchases. This seems to counteract TikTok’s plans to give users a 25% discount when they buy coins via the web. TikTok didn’t immediately respond to a request for comment.

Apple might end up banning TikTok from the App Store if it’s indeed circumventing the commissions. Fortnite tried something similar, and the video game is no longer available on the App Store.