Apple's 30% cut of in-app transactions has caused consternation in the tech world for a while, with the likes of Epic Games and Spotify launching high profile legal battles with the company. The latest victim of the 'Apple tax' is Patreon – but this is one example that could have serious repercussions for creatives.
Patreon has explained to its users that it faces being removed from the Apple app store if it does not switch subscriptions over to the iOS in-app model, which means Apple taking said cut. Creators will therefore face the choice of whether to up their fees to account for the deduction, or swallow the cost themselves.
"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," Patreon announced yesterday, describing the update as "a partner forcing us into a change that we don't believe is best for creators."
In the past, the question of Apple's immovable fees has felt confined to the realms of tech giants – it's hard to feel sympathy for the creator of Fortnite, or the world's biggest music streaming platform. But with creators now facing the prospect of giving a large slice of their earnings to Apple, the policy is suddenly starting to look a little mean-spirited for some.
It’s not just Patreon, it’s a sweeping Apple cash grab across the whole creator ecosystem. Apple has no right to force app developers to use their ludicrously overpriced payment processor or pay Apple junk fees for using competing payment services; the court found this unlawful. https://t.co/SfdJE3pyFOAugust 13, 2024
Please avoid using @Patreon on your iPhone if you have one, since @Apple will be charging a 30% fee per sub. I can't describe how much I hate this anti-consumer, status-driven shit cult of a company, and now they come up with this to affect those that don't even buy their garbo. pic.twitter.com/Hg3pttHxkLAugust 12, 2024
Technology blogger John Gruber even argues that Apple is degrading its brand, while pointing out what makes this different to the impact of the policy on, say, Epic Games. "However much money [Apple] think they might get from these Patreon subscriptions once the Patreon iOS app switches to IAP, I refuse to believe it’s worth the further degradation of Apple’s brand that this dispute with Patreon is incurring. The paying users of Patreon are fans. They are such dedicated and devoted fans of certain creators and artists that they choose to pay those creators money."
But while it's largely Apple that's facing online blowback, not everyone is coming out against the tech giant. Substack founder Hamish McKenzie argues that the Substack team "don’t think that Apple should be wholly blamed. This unfortunate situation, in which creators ultimately bear the biggest costs, is a structural issue rooted in how the commercial internet has evolved (or not) over the past couple of decades. Apple’s in-app purchase system is powerful. It makes online purchases trivially easy, maximising the flow of dollars from consumers to vendors and keeping both parties happy. It’s a low-friction experience, which can make a big difference in how much a creator earns from their effort. It’s also trustworthy, stable, and private."
But McKenzie's position could well stem from the fact that, as he admits in his post, Substack is "working with Apple to bring in-app purchases into our app, because we believe that anything that reduces the friction of a subscription is great for creators."
Ultimately, this appears to be the first time that Apple's strict policy is going to have a major effect on creators, regardless of income. Even writers who are just starting out will have to hand over 30% of their income that arrives via iOS, and that leaves a sourer taste than billion dollar game developers missing out on the same percentage.
And perhaps the clearest sign of the negative optics here is that even in the Apple subreddit, a place for diehard Apple fans, the comments are overwhelmingly negative. As one user puts it, "Did Apple really think “we’re going to start stealing 30% of Patreon pledges” was going to go over well?"
