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TikTok Sparks Controversy by Bypassing Apple App Store In-App Purchase System

Fri, May 10 2024 08:25 PM EST

On May 1st, David Tesler discovered that TikTok has initiated a small-scale test allowing users to directly purchase coins through the tiktok.com external webpage, bypassing the App Store's in-app purchase system and effectively circumventing the 30% "Apple tax". ?url=http%3A%2F%2Fdingyue.ws.126.net%2F2024%2F0501%2F77668448j00scscmv004qd000gg00l5g.jpg&thumbnail=660x2147483647&quality=80&type=jpg Similar to the diamonds on TikTok (1 yuan for 10 diamonds), TikTok also has its equivalent "coins" (actually, TikTok also has diamonds), with the current exchange rate being approximately 8 to 10 coins per yuan, or 66 to 69 coins per US dollar. ?url=http%3A%2F%2Fdingyue.ws.126.net%2F2024%2F0501%2F70e35f19j00scscmv002pd000wr014qg.jpg&thumbnail=660x2147483647&quality=80&type=jpg However, as soon as you open the recharge interface through an external webpage, the rate instantly jumps to 94 coins per dollar. The extra coins are clearly the portion taken by Google and Apple during in-app purchases, and users can also use Apple Pay or PayPal for payment here.

Even though it's an external webpage, all the operations here are carried out within the TikTok app. Essentially, this page is a WebView webpage embedded within the app. ?url=http%3A%2F%2Fdingyue.ws.126.net%2F2024%2F0501%2F97dc784cj00scscmv002sd000ta01kwg.jpg&thumbnail=660x2147483647&quality=80&type=jpg According to pulsestacks, Apple requires digital goods and services offered within apps to be processed through the App Store's in-app purchase system. Even though TikTok's "coins" are simply gifts used to tip creators, they still qualify as digital goods.

If this option is widely promoted, Apple's revenue from TikTok is likely to significantly decline. In such a scenario, TikTok's actions, which violate Apple's App Store rules, could face sanctions, such as being forced to be removed from the App Store.

For instance, Fortnite was forced off the App Store in 2020 due to similar external payment options. However, with Apple's "open policy" in the EU, Epic announced yesterday that Fortnite will be returning to the iOS platform. ?url=http%3A%2F%2Fdingyue.ws.126.net%2F2024%2F0501%2F3246114fj00scscmv000nd000gq0080g.jpg&thumbnail=660x2147483647&quality=80&type=jpg