Popular creator's platform Patreon just got hit with Apple's 30% app fees
- Up until now Patreon had skirted Apple's rules successfully
- But 'who pays what' has become a minefield following the giant's legal battles and the introduction of the DMA in Europe
There's bad news for creators using Patreon and, most specifically, the Patreon iOS app as from today revenue earned via subscriptions and services sold through the app will become liable for Apple's familar 30% cut of fees.
Previously the service - which also allows users to subscribe via their website and bypass such fees - had been exempt from Apple's fees, dodging the 'tax' by virtue of falling through the cracks in Apple's hazy rules regarding some subscription services and dating apps as to who exactly owes them what.
For example digital goods and services are liable for the fee, but services supplying physical items are not. Similarly 'reader apps' which offer users the opportunity to obtain information such as news do not get charged the fee.
Up until now Patreon - a platform able to offer anything and everything - had apparently skirted such rules successfully.
Tightening up and lashing out
Dodging 'Apple tax' is a situation that has become more complicated following the giant's legal battles with Epic over fees and the introduction of the Digital Markets Act in Europe, a measure designed to prevent an Apple monopoly but one which has instead prompted a flurry of confusing new fees and obfuscated rules all designed to keep Apple's money flowing.
Now it seems that - in the interests of tightening up their new terms and making their position clearer - Patreon has fallen foul of the same new broom that just hit Facebook and Instagram ads.
It's a move that's brought upset and outrage already as the majority of Patreon's users are small, indepedent creators seeking to gain some kind of financing for their ongoing, fan-pleasing work.
Oh, for the love of God.
— Tantacrul (@Tantacrul) August 12, 2024
Right, if anyone is ever considering being a patron for me or any other creator, please do not do it via iOS.
This is such a scumbag move, @Apple. You know full well who you are scalping. pic.twitter.com/X4EFCDDZf6
Notably many charities and benevolent services use the platform to spread word of their projects and take contributions and donations.
Thus, rather than being a 'tax' on big companies making millions and billions (and Apple legitimately having a leg to stand on in regards of the affordability of such fees and their rights to claim them), hitting Patreon creators with a 30% fee - who's monthly takings may dwindle around the $100 mark - feels like a badly-aimed low blow.
What's going on?
According to creators on the platform today, Patreon themselves have been asked to use Apple's own purchasing system and "remove all other billing systems from the Patreon app by November 2024."
"This means that starting November new memberships purchased in the iOS app will be subject to Apple's 30% App Store fee."
At the time of writing it's unclear as to how Patreon will react or what this means for the many small and independent creators who use the service. However, it highly likely that such fees will simply be diverted to Apple rather than end up in the hands of the platform's creators.
Alternatively Patreon creators could simply direct their users to make all payments via Patreon's website, circumventing Apples new cut and making sure that any monies paid reach the right people.
But given Apple's current state of flux over fees it's equally likely that Apple may recind the claim (or attribute the 30% fee introduction to a misunderstanding from an overly officious moderator).
Either way, we'll let you know the outcome when the confusion lifts.
Companies
