Apple says Patreon must switch to its billing system or risk removal from App Store | TechCrunch

Apple has threatened to remove creator platform Patreon from the App Store if creators use unsupported third-party billing options or disable transactions on iOS, instead of using Apple’s own in-app purchasing system for Patreon’s subscriptions. In a blog post and email to Patreon creators about upcoming changes to membership in the iOS app, the company says it’s begun 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 it will switch them over to subscription billing as of November 2024, but they will be able to decide whether to price their memberships at a higher fee to cover Apple’s commission or decide if they want to absorb the fee themselves. In addition, creators can opt to delay the migration in their Patreon settings to November 2025, the company said. However, if creators choose the latter option, they won’t be able to offer memberships in the iOS app until they adopt Apple’s iOS in-app purchase system, as Apple’s rules will apply as of this November.

The announcement serves as another example of how Apple’s App Store rules have been applied unevenly — an accusation that Apple has faced in the past from critics, including Fortnite maker Epic Games, which sued the tech giant over antitrust issues. While Epic largely lost that lawsuit, as the court ruled Apple was not a monopolist, it did decide the iPhone maker would have to allow links to other payment options inside their apps. As a result, Apple now allows developers to promote their subscriptions via links to a website, but with a 27% commission instead of the standard 30%, or 12% instead of 15% for auto-renewing subscriptions in year two. (Apple’s compliance with the court’s injunction is still being fought in court).

Despite Apple’s rules and policies, Patreon had existed in an odd sort of gray area, as some of its subscription-based offerings could be consumed in its app while others could not. Another possible reason for the Patreon exception was due to the fact that many users didn’t come to Patreon itself to discover creators and content, Patreon CEO Jack Conte told tech news site The Verge in 2021. Instead, the discovery took place through other channels. Though the company admitted it didn’t have any sort of special contract with Apple to avoid the App Store fees, the app had been able to skirt Apple’s in-app billing requirements for some time.

Clearly, Patreon is not happy with the recent pressure from Apple to now comply with its policies, as it tells creators that neither of the options presented — either raising their subscription prices or eating the cost themselves — is “ideal.”

“Most creators on Patreon use subscription billing,” Patreon’s blog post points out. “Over the past few years, we’ve slowly rolled it out, tackling each hurdle that has come up to ensure that the migration is not disruptive for creators. That’s the way we like to roll out products. Unfortunately, because of Apple’s timelines and constraints, we can’t continue to do it this way. Instead of helping creators move to subscription billing if and when they feel like it’s right for them, we’re now forced to migrate all creators on Apple’s timeline.”

The company reminded creators that Apple’s fees only apply to the iOS app and that creators can continue to offer the same prices on the web and Android. It also advised creators to send their fans to a Help Center article that explains iOS fees so subscribers “can better understand the implications of where they choose to make their purchases.”

Patreon and Apple were not immediately available for further comment.