Apple’s dominance over the App Store ecosystem has once again come under scrutiny as the tech giant has issued an ultimatum to Patreon, the popular crowdfunding platform. Apple has threatened to remove Patreon from the App Store if it continues to allow creators to use third-party billing options or disable transactions on iOS without switching to Apple’s in-app purchase system. This move has reignited debates about Apple’s strict control over its platform and the implications for businesses and creators relying on the App Store for distribution.
The Migration to Apple’s In-App Purchase System
In response to Apple’s ultimatum, Patreon has announced a 16-month-long migration process to transition all its creators to Apple’s iOS in-app purchase system by November 2025. Patreon, in a blog post and email to its creators, laid out the new requirements, explaining that it would begin enforcing the shift to subscription billing as early as November 2024. Creators will need to decide whether to increase their membership fees to cover Apple’s commission or absorb the costs themselves.
However, Patreon has offered some flexibility to creators by allowing them to delay the migration until November 2025. Yet, this delay comes with a significant caveat: creators who opt to delay will not be able to offer memberships through the iOS app until they adopt Apple’s in-app purchase system. This essentially forces creators to comply with Apple’s rules sooner rather than later if they wish to continue monetizing their audience through the iOS platform.
Apple’s Controversial App Store Policies
Apple’s insistence on enforcing its in-app purchase system, which takes a 30% commission on all transactions, has been a point of contention for years. Critics argue that Apple’s policies are anti-competitive and place an undue burden on developers and creators. This latest clash with Patreon is reminiscent of the legal battle between Apple and Epic Games, the creator of Fortnite. In that case, Epic Games sued Apple over antitrust issues, challenging the mandatory use of Apple’s in-app purchase system. Although the court ruled that Apple was not a monopolist, it did order the company to allow links to alternative payment options within apps. Apple has since allowed developers to promote their subscriptions through links to external websites, albeit with a reduced commission of 27% instead of the standard 30%.
Despite these changes, Apple’s enforcement of its App Store rules has been criticized for being inconsistent. Patreon, for example, existed in a gray area for some time, offering subscription-based services that could be consumed in its app without fully complying with Apple’s in-app billing requirements. Patreon’s CEO, Jack Conte, suggested in a 2021 interview that the platform’s unique model—where users discover creators through other channels and not directly through Patreon—may have allowed it to evade Apple’s stringent rules. However, with this latest development, it is clear that Apple is tightening its grip and demanding full compliance.
The Impact on Patreon Creators
Patreon’s announcement has left many of its creators in a difficult position. The company has made it clear that neither of the options presented—raising subscription prices or absorbing the costs—is ideal. Most creators on Patreon rely on subscription billing as their primary source of income, and the sudden need to adjust pricing or take a financial hit is far from convenient.
Patreon also expressed frustration with Apple’s timelines and constraints, highlighting that the forced migration disrupts the platform’s gradual approach to implementing subscription billing. Instead of allowing creators to switch to subscription billing at their own pace, Patreon is now compelled to move everyone to Apple’s timeline, a process that could potentially alienate both creators and their supporters.
To mitigate the impact of Apple’s fees, Patreon has advised creators to direct their fans to purchase memberships through the web or Android, where Apple’s commission does not apply. The company even suggested that creators inform their subscribers about the iOS fees, allowing them to make more informed decisions about where to complete their purchases. However, this solution may not be sufficient for all creators, especially those with large audiences on iOS.
The situation between Apple and Patreon underscores the broader challenges faced by companies operating within the App Store ecosystem. As Apple continues to enforce its rules, the tension between the tech giant and the businesses that rely on its platform is likely to persist. For Patreon and its creators, the next 16 months will be crucial in navigating these changes while maintaining their relationships with their audiences.
Apple’s decision to enforce its in-app purchase system on Patreon marks another chapter in the ongoing debate over the App Store’s control and its impact on developers and creators. As Patreon begins its 16-month migration process, creators are faced with tough decisions that could affect their income and pricing strategies. The outcome of this situation may influence how other platforms and developers approach their relationship with Apple, particularly in light of the growing scrutiny over its App Store practices.
