Apple has told Patreon that it must adopt the tech giant’s first party in-app purchase system or face removal from the App Store.
The monetization platform’s reluctance to do so stems from the fact Apple applies a 30% App Store fee to all new memberships purchased in the Patreon app, which will inevitably have a knock-on effect on its direct users (also known as creators).
While it’s inevitable that Patreon will have to get in line in order to retain the status of its iOS app in the App Store, it has pledged that the fee will not impact existing memberships.
30% Fee for New Members
A new blog post from Patreon expands on a previous announcement that digital purchases made through its mobile app would be subject to the App Store fee from November 2024.
It says that Apple is requiring the platform to remove all non-Apple billing systems from its iOS app by this date.
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“Unfortunately, Apple is requiring us to switch over to their in-app purchase system for all iOS transactions or else risk being kicked out of the App Store altogether.” – Patreon
The effect of the change will be that all new Patreon memberships initiated through its iOS app (as well any products or services bought via the company’s app-based shop) will have a 30% fee applied. For the avoidance of doubt, this affects the iOS app only, and memberships created via the web or Android app remain unchanged.
What Happens to Existing Patreon Memberships?
There’s some good news for those with existing Patreon memberships, as the company has confirmed that they will not be affected by the newly introduced fees.
“We want to be crystal clear about one thing. Apple’s fee will not impact your existing members. It will only affect new memberships purchased in the iOS app from November onward.”
However, some creators on the platform should take note that they may notice some changes – specifically, those that currently pay on a first-of-the-month or per-creation basis. The requirements from Apple mean that they will have to switch over to subscription billing (the method used by the majority of its users) as that is the only kind that is supported by Apple’s in-app purchase system.
Patreon is giving any creators on these billing types the opportunity to take advantage of an extended migration, giving them until November 2025.
To further ensure the transition more convenient, creators will be able to use an optional tool to automatically increase membership prices to account for the fees they face.
Apple’s In-App Pickle
Apple’s rules and requirements for in-app purchases on iOS devices has been the subject of much controversy – and the occasional lawsuit – over the last few years.
Back in 2019, Apple was hit with a customer lawsuit over App Store practices. Brought not by app developers or consumer watchdogs, it was actioned by iOS users themselves who were fed up with paying over the odds for app prices inflated by Apple’s blanket 30% fees.
A $1 billion class action lawsuit followed in 2023, this time brought be developers who objected to being subjected to the “abusive” and “excessive” charges made possible by Apple’s effective monopoly on iPhone and iPad distribution.
And just this year, the Supreme Court forced Apple to let developers link to outside payments, after the tech giant was found to be in breach of California’s Unfair Competition Law.
