China’s TikTok appears to be probing ways to avoid paying Apple’s 30 percent commission on digital purchases made through its iOS app.
The Verge reports that TikTok is exploring methods to circumvent the tech giant’s controversial “Apple tax” on in-app purchases. According to reports, some iOS users of the video-sharing platform are being prompted to purchase TikTok coins – virtual tokens used to tip content creators during live streams – through the company’s website rather than directly within the app.
The apparent workaround was uncovered by David Tesler, co-founder of mobile app SendIt, who shared screenshots depicting TikTok urging users to “recharge” their coin balances at TikTok.com to “avoid in-app service fees.” By tapping on these in-app links, users are directed to an embedded web view where payment options like Apple Pay, PayPal, and credit/debit cards are offered, effectively allowing TikTok to bypass Apple’s 30 percent cut on such transactions.
Tim Cook praying for a break (Justin Sullivan/Getty)
TikTok’s support for alternative payment methods bears striking resemblance to the catalyst behind the high-profile legal battle between Apple and Epic Games in 2020. That confrontation was sparked when Epic implemented a direct payment option in the popular game Fortnite, leading to its removal from the App Store for violating Apple’s policies.
While the scope of this apparent rule-breaking by TikTok remains unclear, with the feature apparently limited to a subset of users who frequently purchase larger coin bundles, the implications could be far-reaching. Apple has fiercely defended its App Store policies, fending off accusations of anti-competitive practices leveled by companies like Spotify and Epic Games. The iPhone maker’s current stonewalling of Spotify’s attempt to add similar in-app web links in the EU resulted in fines of around $2 billion.
TikTok’s sheer scale, boasting over 1 billion global monthly active users, makes its potential defiance of App Store policies a substantial challenge for Apple. As Bloomberg’s Mark Gurman bluntly stated, “the only way Apple removes TikTok over this is if it wants to destroy itself.” The video app’s immense popularity, particularly among younger demographics, grants it formidable leverage that could force Apple’s hand on revising its controversial commission structure.
Neither TikTok nor Apple has responded to requests for comment on the apparent App Store policy violation. However, the development underscores the growing tensions between powerful tech companies and Apple’s firm grasp over the iOS ecosystem and monetization policies.
Read more at the Verge here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
