America's government may be banning TikTok soon, but it is facing a closer app ban with its Coins' direct purchase option now offered to users via its website. Users who saw this new setup shared screenshots of the new payment option for TikTok's coins, one that violates the Apple App Store rules and regulations as it avoids in-app purchases, a.k.a. the 70-30 commission split.
Similar to Spotify, Epic Games, and more, this new App Store bypass has offered users a way to avoid the commission rate, but in some cases, it has led to its ban on Apple's devices.
TikTok Coins Direct Purchase May Violate App Store Rules
(Photo : NHAC NGUYEN/AFP via Getty Images)
TikTok is not treading lightly, as another bold move on iOS platforms made it a target, now offering users a way to buy more coins through direct purchases on its websites and not via the Apple App Store. According to David Tesler, TikTok now offers a direct purchase option for its coins, an in-app currency allowing subscribers to support its creators on the platform.
A new pop-up message on TikTok offers this way to purchase coins outside the App Store: "You can save the service fee and get access to popular payment methods."
Apple charges 30 % for every in-app purchase, but TikTok revealed that users may save up to 25% when using its third-party option via PayPal, credit card, or debit card payments.
Read Also: Why a US TikTok Ban Hurts Businesses Beyond Entertainment
TikTok might get banned from the app store next week
— David Tesler (@getdavenow) April 30, 2024
Why? It looks like they’re circumventing apple fee by directing users to purchase coins via external payment methods pic.twitter.com/VG8ihvsRmv
Will This App Store Bypass Ban TikTok's App?
The explicit messaging of TikTok is grounds for App Store rules violations, one that may lead to a TikTok app ban on the platform.
Apple considers these "tips" to be digital goods, requiring in-app purchases, similar to Epic Games' third-party option for Fortnite before it was banned.
Apple's Commission Rate Fiasco
For many years now, Apple's commission rate has been scrutinized by developers and other Big Tech companies. The charge gives developers 30 percent of all app or in-app purchases via the App Store. While this leaves 70 percent to developers, not all are on board with Epic Games' Nineteen Eighty Fortnite attacking Apple and leading to its ban on the App Store.
However, not all cases lead to a ban.
Spotify is known as a long-time vocal critic of Apple's policies, particularly the App Store's commission rate. The music streaming platform previously removed in-app subscriptions on iPhones. Spotify Premium users on iOS were asked to re-subscribe again, but this time, outside of the App Store and directly on Spotify's website, to bypass the commission rate, but this did not lead to a ban.
Moreover, it was recently followed by Netflix, which also opted for a third-party subscription method instead of the in-app purchases on iOS devices but did not face a ban. Not all cases lead to a ban, but it is certainly the worst-case scenario, something that is looming over TikTok with its recent move, particularly as it is on thin ice with the US government.
Related Article: Netflix to Cut Apple-Billed Subscriptions for Users Who Still Pay via App Store
