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Friday, December 13, 2024

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Apple Threatens to Remove Patreon Over Billing Dispute

Apple has threatened to remove the creator platform Patreon from the App Store if creators use unsupported third-party billing options or turn off transactions on iOS instead of using Apple’s in-app purchasing system for Patreon’s subscriptions.

Patreon’s Migration to Apple In-App Purchase System

In a blog post and email to Patreon creators, the company announced a 16-month-long migration process to move all creators to Apple’s iOS in-app purchase system by November 2025. Patreon also informed creators that it will switch them to subscription billing by November 2024.

Creators’ Options and Implications

Creators can charge a higher fee to cover Apple’s commission or absorb the cost themselves. They can also delay the migration until November 2025, but they won’t be able to offer memberships in the iOS app until they adopt Apple’s in-app purchase system.

Apple App Store Rules and Criticism

This announcement highlights ongoing criticism of Apple’s App Store rules, which have been accused of being applied unevenly. Critics, including Epic Games, have challenged Apple’s policies, although Epic essentially lost its antitrust lawsuit against Apple.

Patreon’s Gray Area in App Store Compliance

Patreon had previously operated in a gray area, with some subscription-based offerings in its app without adhering to Apple’s in-app billing requirements. Patreon CEO Jack Conte noted in 2021 that users typically discover content through other channels, not directly on the Patreon app.

Patreon’s Response to Apple Pressure

Patreon expressed dissatisfaction with Apple’s pressure to comply with its policies, stating that neither of the options—raising subscription prices or absorbing the costs—is ideal. The company emphasized that Apple’s fees only apply to the iOS app and encouraged creators to inform subscribers about the implications of iOS fees. Apple is threatening to remove Patreon from the App Store unless the platform complies with Apple’s billing policies, escalating tensions.

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