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Apple threatens Patreon: the service must switch to its billing system or risk being removed from the App Store

Apple threatens Patreon: the service must switch to its billing system or risk being removed from the App Store
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Apple is threatening to remove the Patreon platform from the App Store if creators do not use the in-app purchasing system built into the iOS store, which provides for a 30% commission to Apple, TechCrunch reports. In a blog post and an email to content creators, Patreon has already announced upcoming changes to subscription payments through its iOS app. The company noted that it has begun a 16-month migration process to move all creators to Apple's internal purchasing system by November 2025.

Patreon also informed the creators that starting from November 2024, it will switch them to the in-app purchasing system in the App Store, but they will be able to decide whether to set a higher price for their subscribers or cover Apple's 30% commission at their own expense. In addition, content creators can postpone the migration in their Patreon settings until November 2025, the company said. However, if creators choose the latter option, they will not be able to offer subscriptions in the iOS app until they switch to the App Store in-app purchasing system, as Apple's rules will take effect in November this year.

The announcement is yet another example of Apple's App Store rules being unevenly applied, an accusation Apple has faced in the past from critics including Fortnite developer Epic Games, which sued the tech giant over antitrust laws. While Epic largely lost that lawsuit, as the court ruled that Apple was not a monopoly, it did decide that the iPhone maker should allow links to other payment options in apps. As a result, Apple now allows developers to promote their subscriptions through website links, but with a 27% commission instead of the standard 30%, or 12% instead of 15% for subscriptions with automatic renewal for the second year. (Apple's compliance with the injunction is still being challenged in court.)

Despite Apple's rules and policies, Patreon existed in a strange gray area, as some of its subscription-based offerings were available in the app, while others were not. Another possible reason for the exception for Patreon was the fact that many users did not go to Patreon itself to discover creators and content, Patreon CEO Jack Conte told The Verge in 2021. Instead, discovery was made through other channels. Although the company admitted that it did not have a special contract with Apple that would allow it to avoid App Store fees, the app was able to circumvent Apple's requirements for in-app purchases for some time.

It is clear that Patreon is unhappy with the recent pressure from Apple to comply with the company's policy, as the service tells creators that neither of the proposed options - either raising subscription prices or covering the costs using their own funds - is "ideal."

The company reminded authors that Apple's rates only apply to iOS apps, and that authors can continue to offer the same prices on their own websites and on Android. It also advised authors to send their fans a help center article explaining iOS fees so that subscribers “can better understand the implications of where they choose to make their purchases.”

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