Payne died after falling from the third floor of a hotel in Argentina's capital Buenos Aires, late on Wednesday evening Swedish time.
TMZ claims to have "received images showing Liam's body on a balcony at the hotel with tables and chairs nearby", but chose to only publish photos where Payne's waist and one arm are visible.
The publication was condemned by several profiles via social media before the images were removed.
"TMZ, you should be bloody ashamed", writes Rylan Clark, a BBC presenter, in a post on X.
Another who expressed criticism is singer Alessia Cara, who calls TMZ's publication "gross", also on X.
Neither TMZ nor its founder Harvey Levin has commented on the decision.
However, it's not the first time the entertainment site, which often pushes the ethical boundaries, has faced backlash for its journalism. In 2020, for example, they received massive criticism for being too quick to report the news about Kobe Bryant and his daughter tragically dying in a helicopter crash, before the coroner had even formally confirmed their identities.