As Epic Games' feud with Apple continues over the tech giant's 30% App Store purchasing fee, Patreon -- a creator subscription platform -- is now being forced to use Apple's in-app iOS payment system starting in November. Therefore, it will undergo the same commission fee, “or risk being removed from the App Store.”
Patreon is now offering creators some alternative options.
“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 -- and their in-app purchase system is not built with our same level of creator-first flexibility,” wrote Patreon in an announcement.
Patreon first announced the news of Apple's in-app purchasing system last year.
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At the time, the company highlighted the impending changes: that all new memberships purchased in the Patreon iOS app, in addition to anything bought in a creator's Patreon shop, will be subjected to Apple’s 30% fee; and creators on first-of-the-month or per-creation billing plans will have to switch to subscription billing to continue earning in the iOS app.
Now, the platform is providing its community with ways to best acclimate to these changes come November.
The company says it has built an optional tool that automatically increases creator prices in the iOS app to offset the cost of Apple's fee.
“This way, you'll continue to earn at least the same amount per membership as you do on all other platforms,” Patreon tells its creator community, adding that Apple’s fee will not impact a creator's existing members, only new memberships purchased in the iOS app from November onward.
Creators will have the ability to toggle on the automatic price-increase tool or keep prices the same and pay the 30% fee from their earnings.
Patreon is clear about not recommending the latter option, as it would result in fewer earnings per membership on iOS, but wants to give creators a choice.
Patreon has used third-party payment processors to avoid Apple's 30% fee, which went unchecked by Apple until now -- possibly because most users do not come to Patreon to discover creators and content, Patreon CEO Jack Conte told The Verge in 2021.
Apple's App Store fee has faced widespread criticism, especially from Fortnite maker Epic Games, which sued the tech giant over being a monopoly.
While Epic lost the case, the lawsuit resulted in Apple being ordered to accommodate developers by allowing them the choice to post links to other places where they can pay for Epic’s App Store products.
However, Apple still charges a 27% commission -- or 12% instead of 15% -- for auto-renewing subscriptions.