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No app developer likes paying 30% of their in-app purchase revenue to app stores, and this issue has come up countless times over the years. Famously, Epic Games has been extremely vehement about this. Well, it appears that TikTok is the next company to defy Apple’s store fee. According to a new report, TikTok is bypassing Apple’s App Store fee.
App developers wanting to put their apps on the Google Play Store and the Apple App Store will need to come to terms with the fact that 30¢ of every dollar they earn from in-app purchases will go to the respective app stores. That’s pretty ridiculous, and many companies have been outspoken about it. For example, companies like Amazon and Hulu have halted purchases through the Google Play Store. In order to pay for your Hulu service or buy ebooks from Kindle, you have to go to each company’s respective website.
For the time being, companies are fighting back against these fees, but they still persist. Over time, we’re going to see more companies step up to the plate.
TikTok is bypassing the App Store fee
All the glamorous and big-time TikTok creators aren’t only getting rich off of ad revenue. TikTok has a tipping system where fans can buy a currency called TikTok Tokens to give to creators they love. These are similar to Bits in Twitch.
Well, if you want to tip your creator through the App Store, you’re also going to be tipping Apple. Every dollar you spend in tips will be 30% lighter once it reaches TikTok.
However, TikTok is apparently offering users links to buy tokens from tiktok.com. Users will see a prompt pop-up giving them the option to buy from the website. Buying tokens from the TikTok website will mean that more of the money will go to the company and not Apple.
Obviously, the Cupertino company will not like this. A similar tactic got Epic Games into hot water with Apple several years ago. However, it doesn’t seem that TikTok is targeting everyone with these prompts. It appears that the company has its sights set on people who are liable to spend a lot of money on a single purchase. So, people spending only a few dollars may not see the prompt. However, people spending entire sections of their paychecks on their TikTok celebrities may see it.
It’s tough to say what Apple will do
Well, Apple could simply ban TikTok from its platform, and maybe shoot itself in the foot in the process. TikTok boasts more than a billion monthly active users and many of them spend money on the platform. Undoubtedly, TikTok brings in hundreds of thousands, if not millions of dollars in app store fees. So, we’re not sure if Apple will immediately sweep TikTok from its store. If anything, we expect them to come to some sort of agreement over the matter.
At the moment, neither TikTok nor Apple has commented on this news.