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Screenshots suggest TikTok is circumventing Apple App Store commissions | TechCrunch


TikTok may be routing around the App Store to save money on commissions. According to new findings, the ByteDance-owned social video app is presenting some of its users with a link to a website for purchasing the coins used for tipping digital creators. Typically, these coins are bought via in-app purchase, which requires a 30% commission paid to Apple.

The feature may be hidden from most users, either by design or because it’s only shown to users in a specific group, like testers or high spenders. In any event, those who do have access to the new option are seeing a screen that encourages them to “recharge” — that is, buy more coins — via tiktok.com. Although these screenshots were discovered within the iOS app by TechCrunch tipster, David Tesler, it’s not clear how many TikTok users are seeing them or when or how they’re being shown.

Tesler says the option to purchase via the web was displayed to an account that had previously purchased a large amount of coins.

Image Credits: Screenshot from TikTok app

In some cases, users are shown a screen that includes a message such as “Try recharging on tiktok.com to avoid in-app service fees” followed by a “Try now” link. Other times, they may get a pop-up that says “Try recharging on tiktok.com” with another message about the potential savings. This one reads, “You can save the service fee and get access to popular payment methods,” and is followed by a big, red “Try now” button or a less prominent option that says “Don’t show again.”

Image Credits: Screenshot from TikTok app

Users who follow the provided link are taken to the website for buying coins: tiktok.com/coin. From this web view, they can pay using a variety of methods, including Apple Pay or debit or credit cards. The website reminds users that purchases made directly with TikTok will save them around 25% “with a lower third-party service fee.”

On the web, users can purchase packs of coins ranging from 70 coins to 17,500 coins, or even enter a custom (higher) amount. Inside the app, however, coin packs are available starting at 20 coins up to 16,500 with no option for a custom amount.

Image Credits: Screenshot from TikTok app

That could suggest TikTok is only showing the web links to those users who typically buy larger packs of coins at one time.

While Apple did begin to allow developers of select apps to add links to their websites from inside the app back in 2022, the use case was limited. The only apps that qualify to offer these lines for “account management” are what Apple calls “reader” apps — or those apps that provide access to paid digital content as their main functionality. (Think: Netflix, not Facebook.) In addition, apps that choose to use the External Link Entitlement cannot offer in-app purchases via the App Store as well. It’s an either/or situation.

Typical IAP flow. Image Credits: Screenshot from TikTok iOS app

Given that TikTok is also offering most of its users the option to buy via in-app purchases, it seems it’s not abiding by the External Link Entitlement rules even if it had been granted the exception (which would be surprising.)

TikTok and Apple have not returned requests for comment at this time.

Tesler noted that when Fortnite inserted an option that routed users around Apple’s in-app purchases, ahead of filing its antitrust lawsuit against the company, Apple banned the app from the App Store. It’s unclear what, if any, action Apple will take against TikTok now, given the current politics around the Beijing-based app.

TikTok’s current U.S. fate is uncertain, as a bill to ban the app has now been signed into law by President Biden. However, the company said it plans to fight the ban in court, as it did before under President Trump. Biden had originally put the effort to ban the app on hold until a new bipartisan bill passed both the House and Senate.




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The impact of TikTok's ban in other countries could signal what's ahead for the U.S. | TechCrunch


On April 24, U.S. President Joe Biden signed a bill that would ban TikTok if its owner ByteDance doesn’t sell the app.

The bill requires ByteDance to secure a deal within nine months, with a 90-day extension available to close it. After this deadline, the U.S. will bar app stores from listing the app.

TikTok will challenge this decision in courts with a long legal battle ahead of us. But many countries worldwide have already banned the app, and ByteDance hasn’t had a chance to revive it. These moves impacted ByteDance’s operations in those countries, creators, as well as startups related to the creator economy.

Here’s how those bans are playing out in other markets.

  • India: This is perhaps the most well-known TikTok ban as India is one of the biggest consumer markets in the world. In June 2020, the Indian government banned the short video app along with many other Chinese apps citing national security reasons. ByteDance’s other popular app Helo was also a part of the list of banned apps at that time.

Members of the Working Journalist of India (WJI) hold placards urging citizens to remove Chinese apps and stop using Chinese products during a demonstration against the Chinese newspaper Global Times, in New Delhi on June 30, 2020. – TikTok on June 30 denied sharing information on Indian users with the Chinese government, after New Delhi banned the wildly popular app citing national security and privacy concerns.
“TikTok continues to comply with all data privacy and security requirements under Indian law and have not shared any information of our users in India with any foreign government, including the Chinese Government,” said the company, which is owned by China’s ByteDance. (Photo by Prakash SINGH / AFP) (Photo by PRAKASH SINGH/AFP via Getty Images)

  • Afghanistan: In 2022, the Taliban banned TikTok along with PlayerUnkown’s Battleground (PUBG) for “misleading youth.” In February, Wired reported that many creators in the country used VPNs to make videos and reach different audiences through TikTok. The report noted that TikTok users in Afghanistan were estimated to be anywhere between 325,000 to 2 million.
  • Uzbekistan: Uzbekistan has placed restrictions on TikTok’s usage in the country since July 2021. In 2022, lawmakers proposed a complete ban after several people used VPNs to use the service.
  • Senegal: In August 2023, Senegal blocked TikTok in the aftermath of the sentencing of opposition leader Ousmane Sonko. Citizens used the platform to register dissent resulting in a ban. In October, authorities demanded that ByteDance create a way for officials to remove accounts.
  • Somalia: Somalia banned TikTok — along with Telegram and betting site 1xBet — around the same time as Senegal. However, Somali authorities cited that these platforms were used to “spread horrific content and misinformation to the public.”
  • Kyrgyzstan: August 2023 wasn’t a great month for TikTok. Kyrgyz authorities also barred the platform, deeming it harmful to “the health and development of children.” The country’s culture ministry added that teens were trying to reenact certain videos, causing danger to their lives.
  • Nepal: Nepal banned TikTok in November 2023 because the government believed the app disrupted “social harmony” and had an impact on “family and social structures.” The authorities were also concerned about growing cybercrime on the platform, with local media reporting 1,600 TikTok-related cases in the last four years. According to a BBC Media action report published in 2023, TikTok was the country’s third most popular social media platform after YouTube and Facebook.
  • Other bans: Iran has banned most major social networks in the country, including TikTok. However, the exact date of the ban is unknown. Apart from that, several countries and regions, including the U.S., Canada, the U.K., Belgium, the EU, New Zealand and Australia have barred TikTok from official devices.

Impact of the bans

Multiple reports have captured the impact of the TikTok ban on creators who were reliant on the short video platform for reach and even money making. Many small businesses also use TikTok to promote their brands in different ways.

In many ways, India banning TikTok was a pivotal moment as Instagram rushed to release Reels in India to replace the platform. Meta (then Facebook) launched Reels in the U.S. a few months later. YouTube also followed suit by introducing Shorts in India.

However, TikTok’s ban also gave rise to many local short video apps. Twitter and Google-backed local social network ShareChat released Moj; Verse Innovation (parent company of news aggregator DailyHunt) launched Josh, Times Internet launched MX Takatak and eventually merged it with Moj in 2022; ad company InMobi released Roposo with other rivals like Mitron, Chingari, and Trell also trying to capture the market.

Developers in Nepal also launched a TikTok rival called Ramailo in November 2023, but its lifespan was short-lived.

Because of multiple apps, creators have had to invest in putting their content on multiple platforms. Critically, these platforms might not be putting short videos front and center like TikTok, and their recommendation algorithm might also differ, causing creators to lose their audience. A similar impact could occur in the U.S., as creators scramble to find a new platform or platforms for their work — even if only to hedge against the possibility that TikTok’s influence wanes under the threat of a ban.

In the aftermath of India banning TikTok, ByteDance had to scale back its operations. Earlier this year, the company’s music streaming service, Resso, was also shut down in India after the government asked app stores to pull the app.

Aside from the impact on creators, digital rights activists have also made arguments that banning platforms like TikTok curtails free speech. Some of these angles might play out in the U.S., too, as the government and ByteDance will indulge in legal battles.

Last year, FCC Commissioner Brendan Carr said that India set an “incredibly important precedent” by banning TikTok in 2020. Carr mentioned at that time that the U.S. needs to follow India’s lead to remove nefarious apps.


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TikTok ban signed into law by President Biden: How we got here, and what comes next | TechCrunch


TikTok faces an uncertain fate in the U.S. once again. A bill including a deadline for TikTok parent company Bytedance to divest within nine months or face a ban on app stores to distribute the app in the U.S., was signed by President Joe Biden on Wednesday as part of broader legislation including military aid for Israel and Ukraine. The White House’s approval comes swiftly after strong bipartisan approval in the House and a 79-18 Senate vote Tuesday in favor of moving the bill forward.

TikTok is based in Los Angeles and Singapore but is owned by Chinese tech giant ByteDance. That relationship has raised eyebrows among U.S. officials, who warn that the app could be leveraged to further the interests of an adversary. The bill’s critics argue that the U.S. is unfairly targeting a well-loved social network when the government could be dealing with household issues that directly benefit Americans.

What happened in the Senate?

Senate Majority Leader Chuck Schumer, who has the power to set the chamber’s priorities and round up Democrats for a unified vote, initially said that the Senate “will review the legislation when it comes over from the House.”

The Senate at first seemed far from presenting a united front against TikTok. Some Republican China hawks like Sens. Josh Hawley and Marsha Blackburn were pushing their chamber of Congress to take up the bill. On the Democratic side, Senate Intelligence Committee Chairman Mark Warner issued a joint statement with his Republican committee counterpart, Marco Rubio, in support of a forced sale or ban for TikTok.

“We are united in our concern about the national security threat posed by TikTok — a platform with enormous power to influence and divide Americans whose parent company ByteDance remains legally required to do the bidding of the Chinese Communist Party,” Warner and Rubio said in an emailed statement. Their Senate committee, which is frequently briefed on national security matters, is particularly relevant given the nature of the concerns expressed by TikTok’s critics in Congress.

Late Tuesday, the Senate approved the $95 billion aid package — including aid for Taiwan and humanitarian aid for Gaza — that also contained the much-debated TikTok ban.

What happened in the House?

In March, the House Energy and Commerce Committee introduced a new bill designed to pressure ByteDance into selling TikTok. The bill marked a fresh push by the U.S. government to separate the company from its Chinese ownership or force it out of the country.

The bill, known as the Protecting Americans from Foreign Adversary Controlled Applications Act, would make it illegal for software with ties to U.S. adversaries to be distributed by U.S. app stores or supported by U.S. web hosts. Within the bill’s definitions, ownership by an entity based in an adversary country, like ByteDance in China, counts.

In language of the bill, which goes on to name TikTok explicitly, “it shall be unlawful for an entity to distribute, maintain, or update (or enable the distribution, maintenance, or updating of) a foreign adversary controlled application.” If the bill became law, Apple’s App Store and Google Play could not legally distribute the app in the U.S.

The bill, which many of its detractors reasonably describe as a “ban,” would force ByteDance to sell TikTok within six months for the app to continue operating here. It also empowers the president to have oversight of this process to ensure that it results in the company in question “no longer being controlled by a foreign adversary.”

After getting wind of the bill’s swift and sudden progress in Congress, TikTok pushed back with a mass in-app message to U.S. users, complete with a button for calling their representatives.

“Speak up now — before your government strips 170 million Americans of their Constitutional right to free expression,” the message read. “Let Congress know what TikTok means to you and tell them to vote NO.”

In spite of TikTok’s decision to rile up its users — or perhaps because of it — the bill to force ByteDance to sell TikTok passed through the House Energy and Commerce Committee with a 50-0 vote. The fast-tracked bill passed a full vote in the House on March 13.

Prior to the vote, subcommittee members had a classified briefing with the FBI, the Justice Department and Office of the Director of National Intelligence at the behest of the Biden administration, Punchbowl News reported.

President Biden also explicitly said that he would sign the bill if it reaches his desk. “If they pass it, I’ll sign it,” Biden told a group of reporters. And Biden followed through with that statement in signing the bill Wednesday.

Why does the U.S. say TikTok is a threat?

To be clear, there is currently no public evidence that China has ever tapped into TikTok’s stores of data on Americans or otherwise compromised the app.

Still, that fact hasn’t stopped the U.S. government from highlighting the possibility that China could if it wanted to. The Chinese government hasn’t been shy about going hands-on with companies in the country or keeping critics from its business community in line.

FBI director Chris Wray once cautioned that users might not see “outward signs” if China were ever to meddle with TikTok. “Something that’s very sacred in our country — the difference between the private sector and the public sector — that’s a line that is nonexistent in the way the CCP operates,” Wray said in a Senate hearing last year.

TikTok has vehemently denied these accusations. “Let me state this unequivocally: ByteDance is not an agent of China or any other country,” TikTok CEO Shou Zi Chew said last year during a separate hearing with the House Energy and Commerce Committee.

To TikTok’s credit, if China wanted to get its hands on information about U.S. users, Beijing could easily turn to data brokers who openly sell troves of user data around the globe with little oversight.

Because the U.S. has not produced any public evidence to back up its serious claims, there’s a major disconnect between how politicians feel about TikTok and how most Americans do. For many TikTok users, the U.S. crackdown is just one more way that politicians are out of touch with young people and don’t understand how they use the internet. For them — and other skeptics of the U.S. government’s claims — the situation looks like pure political posturing between two countries with bad blood, sometimes with a dash of racism.

Where did this idea come from?

The campaign to force ByteDance to sell TikTok to a U.S. company originated with an executive order during the Trump administration. Trump’s threats against the company culminated in a plan to force TikTok to sell its U.S. operations to Oracle in late 2020. In the process, TikTok rejected an acquisition offer from Microsoft but ultimately didn’t sell to Oracle, either, in spite of Trump’s efforts to steer the acquisition to benefit close ally and Republican mega donor Larry Ellison.

The executive action ultimately fizzled in 2021 after Biden took office. But last year, the Biden administration picked up the baton, escalating a pressure campaign against the app along with Congress. Now that campaign looks to be back on track.

Oddly, former President Donald Trump, who himself initiated the idea of a forced TikTok sale four years ago, is no longer in support of a TikTok crackdown. Trump explained his abrupt about-face on TikTok by highlighting the benefit a ban or forced sale could have on Meta, which suspended the former president’s account over his role in inciting violence on January 6.

“Without TikTok, you can make Facebook bigger, and I consider Facebook to be an enemy of the people,” Trump told CNBC. Trump’s tune on TikTok may have changed following a recent meeting with billionaire Republican donor Jeffrey Yass, who owns a 15% stake in TikTok’s Chinese parent company ByteDance.

What’s TikTok’s response to the potential ban?

There is some strong bipartisan congressional support for regulating TikTok, but things are still pretty complex. The most obvious complication: TikTok is enormously popular and we’re in an election year. TikTok has 170 million users in the U.S. and they aren’t likely to quietly watch as Congress effectively bans their favorite source of entertainment and information.

TikTok’s creators and their followers likely won’t go quietly. TikTok accounts with millions of followers have a built-in platform for organizing against the threat to the app that connects them to their communities and facilitates brand deals and advertising income.

TikTok itself would also surely mount a strong legal challenge against the forced sale, much as it did when the Trump administration previously tried to accomplish the same thing through executive action. TikTok also sued when Montana attempted to enact its own ban at the state level, which ultimately resulted in a federal judge issuing an injunction and blocking the effort as unconstitutional.

“This legislation has a predetermined outcome: a total ban of TikTok in the United States,” TikTok spokesperson Alex Haurek told TechCrunch in an emailed statement. “The government is attempting to strip 170 million Americans of their Constitutional right to free expression,” Haurek said, foreshadowing the massive public outcry that could result.

The cultural reach of TikTok is so great that Biden is campaigning on TikTok, even as the White House calls the app a national security threat.

Even though the White House has now signed off on the legislation, the U.S. scheme to force ByteDance to sell TikTok could still fail — an outcome that may or may not result in a ban. China has previously stated that it would oppose a forced sale of TikTok, which is well within the Chinese government’s rights following an update to the country’s export rules in late 2020.

Beyond Congress and the courts, TikTok holds a direct line to a massive chunk of the American electorate and a fleet of creators who command many millions of loyal followers. Those levers of power shouldn’t be underestimated in the fight to come.

Still, it’s difficult for TikTok to more effectively organize these millions. Though the X platform, when it operated as Twitter, was highly efficient as a mechanism to share breaking news, TikTok’s algorithms make it less effective as a means of understanding what is happening minute by minute. Though TikTok users say it has become a source of news — among adults, those ages 18 to 29 are most likely to say they receive their news regularly on TikTok — that information tends to be highly targeted and asynchronous. While many users may know something is brewing in Washington, it’s likely they are less aware of the steps required to fight it, making it harder for TikTok to mobilize them.

This post was originally posted March 13, and has been updated as the legislation moves forward.




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Biden signs bill that would ban TikTok if ByteDance fails to sell the app | TechCrunch


President Biden has signed a bill that would ban TikTok if its owner, ByteDance, doesn’t sell it within a year. The bill includes aid for Ukraine and Israel. U.S. Senators passed the bill 79-18 on late Tuesday after the House passed it with overwhelming majority over the weekend.

The bill gives ByteDance nine months to divest TikTok, with a 90-day extension, to complete the deal. If ByteDance doesn’t sell TikTok, it would become illegal for app stores to distribute the app.

In an emailed statement to TechCrunch, TikTok said it would challenge the “unconstitutional law” in court.

“We believe the facts and the law are clearly on our side, and we will ultimately prevail,” the statement reads. “The fact is, we have invested billions of dollars to keep U.S. data safe and our platform free from outside influence and manipulation. This ban would devastate 7 million businesses and silence 170 million Americans. As we continue to challenge this unconstitutional ban, we will continue investing and innovating to ensure TikTok remains a space where Americans of all walks of life can safely come to share their experiences, find joy, and be inspired.”

TikTok CEO Shou Zi Chew shared his own video response on Wednesday, calling the news “a disappointing moment” and stating that TikTok “will keep fighting.”

Back in March, the House passed a similar standalone bill to ban TikTok or force its sale with a six-month time limit, but the Senate never took that bill up. This time, the House packaged the TikTok bill with foreign aid to U.S. allies, which essentially forced the Senate to make a decision.

TikTok has spent the last few months arguing that its platform is essential for creators and small businesses in the U.S. A few weeks ago, the company released an economic impact report revealing that TikTok generated $14.7 billion for small to mid-sized companies in the U.S.

This story is developing…




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Senate passes a bill forcing TikTok to face a ban if ByteDance doesn't sell it | TechCrunch


The Senate passed a bill, included with the foreign aid package, that will ban TikTok if its owner, ByteDance, doesn’t sell it within a year. Senators passed the bill 79-18 Tuesday after the House passed it with overwhelming majority over the weekend.

President Joe Biden will have to sign the bill to make it law, and as per a statement released by the White House, he intends to do so on Wednesday.

Notably, in March, the House passed a similar standalone bill to ban TikTok or force its sale with a six-month time limit. However, the Senate never took that bill up. This time, as the bill was tied with critical foreign aid to Ukraine, Israel, and Taiwan, the Senate had to make a decision.

TikTok didn’t immediately release a statement. However, Michael Beckerman, the company’s head of public policy for the Americas, said that the company plans to challenge the move in courts, according to Bloomberg.

“This is an unprecedented deal worked out between the Republican Speaker and President Biden. The stage that the bill is signed, we will move to the courts for a legal challenge,” he said in a memo to TikTok’s US staff earlier this week.

The bill gives Bytedance nine months to force a sale with a 90-day extension  — so effectively a year to complete the deal.

Last week, when the House passed the bill, TikTok said it was “unfortunate” that the House was using the cover of important foreign and humanitarian assistance to jam through a ban bill that restricts the “free speech rights of 170 million Americans.”

While TikTok operates out of Singapore, the U.S. has been concerned about the data of its citizens, given the Chinese ownership of the social media platform. TikTok has continually tried to assure the government that it doesn’t give out U.S. user data to China with different campaigns.




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U.S. House passes revised bill to ban TikTok or force sale | TechCrunch


The U.S. House of Representatives passed a bill this afternoon that would require TikTok-owner ByteDance to sell the popular social media app or see it banned in the United States.

Efforts to ban TikTok go back to the Trump Administration, but the issue has been revived in recent months. The House already passed a similar bill in March — a bill that the Senate showed little interest in taking up. This new version expands the window for ByteDance to sell TikTok to nine months (compared to six months in the previous bill), as well as giving the president ability to grant a single, additional 90-day extension.

It sounds like the change has satisfied some Senate skeptics. Senate Commerce chair Maria Cantwell (D-Washington) told reporters Thursday that she’d suggested the extension, as it “assures that divestiture will more likely happen.”

The new bill was passed 360-58, with strong support from a majority of both Republicans and Democrats. It’s part of a larger package that includes foreign aid to Ukraine, Israel, and Taiwan, and was likely included as a way for House Speaker Mike Johnson to attract more conservative support.

The Senate could take up the package this coming week, and President Joe Biden has said he supports the bill and will sign it. If that happens, TikTok is expected to challenge the bill in court.

Biden’s administration has been briefing lawmakers on what it says are the national security threats posed by the app — both as a source of data on American users for the Chinese government, and as a channel for that same government to push propaganda to Americans. On the other side of the aisle, House Foreign Affairs Committee chair Michael McCaul (R-Texas) described the app today as “a spy balloon in Americans’ phones” used to “surveil and exploit America’s personal information.”

When it became clear a TikTok bill was back on the table earlier this week, the company posted a statement arguing that the House is “using the cover of important foreign and humanitarian assistance to once again jam through a ban bill that would trample the free speech rights of 170 million Americans, devastate 7 million businesses, and shutter a platform.”

Civil liberties groups such as the Electronic Frontier Foundation and American Civil Liberties Union and have also opposed previous attempts to ban the app.




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ByteDance gets 24 hours to show EU a DSA risk assessment for TikTok Lite | TechCrunch


TikTok owner ByteDance is facing fresh questions about its compliance with the European Union’s Digital Services Act (DSA), an online governance and content moderation framework that puts a legal obligation on larger platforms to mitigate systemic risks in areas like youth mental health.

The EU’s latest concerns about TikTok’s DSA compliance center on the launch of TikTok Lite. This is a version of the video sharing app which recently launched (“test launched”, per TikTok) in France and Spain — letting 18+ year old users there earn points for certain in-app activities, such as liking content or following new creators. TikTok says these points can be redeemed for gift cards or “coins” that can be gifted to creators.

The reward-linked engagement feature looks to have triggered concern in the EU about potentially addictive design which could have a negative impact on young people’s mental health. The European Commission oversees platforms’ compliance with DSA system risk requirements.

In a press release announcing the request for information (RFI), the Commission said it’s asked TikTok for more details on the risk assessment it should have carried out before deploying the new app in the EU.

“This concerns the potential impact of the new ‘Task and Reward Lite’ programme on the protection of minors, as well as on the mental health of users, in particular in relation to the potential stimulation of addictive behaviour,” it wrote, adding that it’s also requesting info about the measures TikTok has put in place to mitigate such systemic risks.

TikTok has been given 24 hours to provide the risk assessment for TikTok Lite. It has until April 26 to provide other requested information, after which the Commission said it will analyse its reply and assess next steps, such as whether or not to open a formal investigation.

Reached for comment on the Commission’s RFI, a TikTok spokesperson said: “We have already been in direct contact with the Commission regarding this product and will respond to the request for information.”

ByteDance, which owns TikTok, is one of around two dozen larger online platforms that are subject to the strictest layer of DSA rules — requiring them to take steps to mitigate systemic risks use of their platforms could cause. Penalties for failing to comply with the regulation can reach up to 6% of global annual turnover which could lead to some hefty fines for TikTok for any confirmed compliance failures.

The wider impact of the pan-EU regulation is likely to be on platforms’ product design choices, with EU enforcers having powers that could potentially force the reform of entire business models if they’re found to have toxic impacts.

TikTok is already under investigation in the EU in relation to a number of DSA obligations, including in the area of protection of minors and the risk management of addictive design and harmful content, after the Commission announced a formal probe back in February. But the latest RFI suggests the EU is worried there are more issues of concern.

It’s particular interesting to see the Commission intervening so swiftly after an tentative product release — as the TikTok Lite app only appears to have been live in the two markets for a very brief period. The Commission says it launched this month. (And here, for example, is a Spanish YouTube video on the reward feature which was posted just under a week ago where the vlogger says the program for earning money “just by watching videos” has only just been made available, and so far only on some Android devices.)

It’s not clear whether TikTok conducted a DSA risk assessment for the new reward program ahead of launching TikTok Lite in the two EU markets. A TikTok spokesman did not respond when we asked about that. But the regulation’s focus on systemic risk essentially makes such a step obligatory for features that are likely to appeal to minors.

TikTok did tell us it requires TikTok Lite users to verify that they are 18 or older in order to collect points through their use of the app. Asked about the robustness of the age verification technology it’s using, its spokesman said the processes involved can include things like “submitting a selfie with a photo ID (e.g passport or drivers license), credit card authorisations etc”.

Other restrictions on the reward program TikTok highlighted are a maximum limit on rewards it said is “roughly” equivalent to €1 per day. It also said there’s a maximum daily video time limit for rewards of 1 hour — so, presumably, you can only earn points for one hour’s worth of video watching, after which you won’t accrue any more points that day.

How clearly such limits are communicated to TikTok Lite users may be one area of interest to EU enforcers as they ask the platform about its design choices.

Consumer groups in Europe have previously raised concerns about various aspects of TikTok’s platform design, including its use of virtual currency to create engagement incentives. Complaints raised back in 2021 were funnelled through the Consumer Protection Cooperation Network, with the Commission involved in encouraging a dialogue between the two sides. Then, in June 2022, the procedure culminated in TikTok offering a series of commitments — including pledging to boost transparency around its digital coins and virtual gifts.

However judging by the Commission’s oversight of TikTok’s approach to DSA compliance the platform may need to go further to satisfy enforcers of the rebooted EU Internet rulebook, which came fully into force this February — but with systemic risk elements expected to be respected as of late August 2023.


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TikTok's Instagram competitor likely to be named TikTok Notes | TechCrunch


TikTok’s upcoming Instagram competitor app for sharing photos could be named TikTok Notes, according to screenshots posted by users. TikTok also confirmed the app was in development.

Over the last few days, TikTok users have been getting pop-up notifications about a new TikTok Notes app to share photos.

The notification says that the company is soon launching “a new app for photo posts” called TikTok Notes and users’ existing photo posts will be shared on the app. Users can choose to not share their image posts to the new app too.

TikTok confirmed that it is working on the app but specified that it is not available yet.

“As part of our continued commitment to innovating the TikTok experience, we’re exploring ways to empower our community to create and share their creativity with photos and text in a dedicated space for those formats,” a TikTok spokesperson told TechCrunch.

Separately, a TikTok-owned URL — photo.tiktok.com (internet archive link) — shows a placeholder marketing image with the text “Opening in TikTok Notes.”

Image Credits: TikTok

Last month, code and language found in the TikTok APK file — an installable file format for Android — suggested that the company has been working to launch a photo-sharing app called TikTok Photos.

However, the latest pop-ups within TikTok suggest that the company might be considering another name for the app.

Both TikTok and Meta are fiercely competing over social media space. While the ByteDance-owned app is prepping to launch an app related to photo-sharing, Meta rolled out a vertical-first video player for Facebook.

TikTok is also experimenting with different formats like 30-minute videos and even text posts like X and Threads.




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TikTok ban could harm Amazon sellers looking for alternatives | TechCrunch


In March, the U.S. House of Representatives overwhelmingly passed a bill that could force ByteDance to divest TikTok or face a ban in U.S. app stores. Much of the related discussion and debate has centered around American data security and speech rights, but a potential move also highlights something else: TikTok is growing its focus on e-commerce, but the interplay of tech giants and geopolitics is squeezing smaller merchants.

Over the past few months, merchants — many of them from China — looking for an Amazon alternative have flocked to TikTok to peddle clothes, cosmetics, electronics and a variety of other products to U.S. buyers, by way of TikTok Shop. In interviews with TechCrunch, sellers from Shenzhen — the Chinese megacity that’s a major hub for Amazon merchants —  said they felt a collective sense of frustration over rising geopolitical tensions and “helplessness” about a potential TikTok ban.

“The situation is not within our control,” a retailer specializing in maternity and baby products told TechCrunch. “It’s just difficult to know how things will develop.” With existing supply chains hard to shift, “we just have to play it by ear.” (The sellers asked not to be named due to political sensitivities.)

TikTok Shop officially launched in September 2023 with 200,000 merchants already on board. But since then it has not provided any updated numbers on how many merchants are currently on the platform, nor how much they sell there, nor how many sell elsewhere (and where else that might be).

Research from Jungle Scout, an Amazon data intelligence provider, gives some idea of TikTok’s e-commerce impact, however. It found that 20% of Amazon sellers, brands, and businesses have plans to expand to TikTok Shop this year. Before the current political backlash took off, ByteDance reportedly projected that it had the potential to grow its U.S. e-commerce business tenfold to $17.5 billion this year.

TikTok isn’t the only platform on the list for merchants looking for more channels beyond Amazon to expand their customer bases. Its rise is part of a bigger shift we’ve been seeing around alternative marketplaces like Temu commanding more attention not just from shoppers, but also from Chinese e-commerce exporters and merchants. And Amazon is reportedly taking notice, another sign that alternatives are picking up traction.

TikTok did not immediately reply to a request for comment.

A new way to sell and buy

TikTok has been trying to boost its e-commerce business since the U.S. launch last September.

The app is famous — or infamous, depending on who you talk to — for how it tightly controls what content is surfaced for whom. TikTok Shop also has a strong dose of curation to it.

Unlike Temu, known for its seas of cheap, white-labeled products from Chinese factories sold directly to U.S. consumers, TikTok’s strategy has been to onboard and highlight more branded goods, making it more of a direct competitor to Amazon.

TikTok is also looking to attract sellers with more traditional subsidies. According to reports, to encourage merchants to sell goods at a steep discount during the most recent Black Friday sales period, TikTok doled out subsidies to those merchants to mark down their prices by as much as 50%.

Incentives and algorithms aside, merchants have been interested in selling on the app simply because TikTok’s short video platform generates massive engagement. According to a survey from Tabcut, a Chinese firm that tracks TikTok Shop performance, nearly 70% of sellers reported an increase in sales year-over-year for the first 11 months of 2023.

This is also borne out by consumer behavior, where products endorsed by influencers continue to gain ground, especially with coveted younger consumers.

According to Jungle Scout, nearly 20% of consumers began their search for products on TikTok in the first quarter of 2023, up 44% from a year ago. While 56% of all consumers still preferred to start their product search on Amazon, 40% of the Gen Z demographic preferred TikTok for search instead of Google.

The heavy concentration of young shoppers is unsurprising, given 52% of TikTok’s U.S. users are aged 18 to 34, according to Pew Research. TikTok has the opportunity to reshape how America’s younger generations shop online.

Outside of leaning on its dynamics, TikTok has been doing some pretty bald media spinning to push its message.

Earlier this month, the commercial research firm Oxford Economics published a report on the impact of TikTok on the small to medium-sized business (SMB) sector in the U.S. It was funded by TikTok, and perhaps unsurprisingly, it provided a ringing endorsement of TikTok’s economic impact: It estimated that a presence on the platform (through advertising or just marketing themselves via accounts) led to $14.7 billion in revenue for the 7 million SMBs in the U.S. using it.

Amazon challenger?

TikTok seems to be serious about making inroads into e-commerce, but it’s still in flux. On one hand, the company — even as it faces a potential U.S. ban or forced sale — continues to roll out new e-commerce features, such as a new video shopping format it previewed at a conference this month. On the other, it’s modifying or enforcing seller policies seemingly on the fly as it tries to navigate how to grow under a particularly glaring spotlight.

“TikTok [Shop]’s internal management is a bit chaotic right now. It’s a new platform, so it hasn’t started squeezing sellers, but its policies are still changing,” said a merchant selling lamps, who has been selling on Amazon since the mid-2010s.

One of those policies appears to be related to what its algorithms are surfacing to which consumers. Merchants out of China say that in recent months, TikTok Shop in the U.S. has ramped up efforts to prioritize U.S.-based shops over foreign ones. Sellers tell TechCrunch that it’s led to the rise of black market “agents” — parties that broker deals between foreign sellers and American residents, who in turn set up TikTok Shops that appear U.S.-owned but are really run by the foreign merchants.

Merchants are willing to jump through these hoops to grow their touch points with users, and diversifying their channels as one giant emerges after another.

“Margins on Amazon are getting thinner and competition is increasingly fierce because of Temu, so TikTok gives us another option,” said the lamp seller.

To gauge TikTok’s impact on Amazon, “we need to understand the overall retail market in the U.S.,” said Richard Xu, partner at Starting Gate Fund, who invests in cross-border retail solutions between China and the U.S.

E-commerce comprises around 15% of U.S. retail, according to the Department of Commerce, so “if we talk about the small share of the online e-commerce sector alone, there isn’t much to discuss,” suggested Xu.

But if TikTok Shop’s strategy is mainly focused on bringing offline businesses online for the first time, that could be a very big move. “[Using] live streaming e-commerce to allow offline small shops and stores to participate, the potential is quite significant.”

In any case, while 15% sounds small, the number is still substantial — $285.2 billion — so TikTok Shop’s potential is enormous even if it just gets a small slice of the existing e-commerce cake.

Juozas Kaziukenas, founder of e-commerce intelligence firm Marketplace Pulse, doubts TikTok will ever replace Amazon. “It doesn’t have the broad selection and fulfillment, and shoppers in the West are used to search-based e-commerce,” he said. “But many people spend many hours using TikTok every day, thus, sometimes they will buy things on it.”

“In the U.S. and other countries in the West, shopping apps developed in parallel with apps that provide entertainment or connection like social media. We got used to getting different things from different apps, as opposed to going to one place for it all,” he added.

“Today, social apps like TikTok are trying to figure out shopping before retailers like Amazon figure out social (like through Amazon Inspire). But the status quo of different apps serving different needs remains.”


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