Apps

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

Comment

Apple has threatened to remove crowdfunding app Patreon from the App Store if creators continue to use unsupported third-party billing options or disable transactions on iOS, instead of using Apple’s own in-app purchasing system. 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 subscription billing 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 subscription billing, as Apple 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.

More TechCrunch

Tags

,

Apple has threatened to remove crowdfunding app Patreon from the App Store if creators continue to use unsupported third-party billing options or disable transactions on iOS, instead of using Apple’s…

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

Elevate your brand’s presence at TechCrunch Disrupt 2024 in San Francisco by hosting a custom Side Event during “Disrupt Week,” taking place October 26 through November 1. Engage face-to-face with…

Enhance your brand: Host a Side Event at TechCrunch Disrupt 2024

Meta and Universal Music Group (UMG) announced on Monday the expansion of their multi-year music licensing agreement, which enables users to share songs from UMG’s music library across Meta’s platforms…

Meta, Universal Music Group address AI music in new licensing agreement

WeRide, a Chinese autonomous vehicle company, is officially gearing up for a U.S. public debut, over a year after China started easing its effective ban of foreign IPOs. The company is…

China’s autonomous vehicle startup WeRide seeks US IPO at $5B valuation

When users click on an event on Polymarket, they will now see a summary of news related to the event based on search results from Perplexity.

Prediction marketplace Polymarket partners with Perplexity to show news summaries

The U.K. antitrust regulator has confirmed that it’s carrying out an early-stage inquiry into Synopsys‘ plans to buy Ansys. The Competition and Markets Authority (CMA) has opened an “invitation to…

Synopsys’ plans to buy Ansys for $35B falls on UK regulatory radar

Here is a look back at the top security research from the annual hacker conferences, Black Hat and Def Con 2024.

The best hacks and security research from Black Hat and Def Con 2024

Cross-border payments for businesses in emerging markets remain significantly untapped, despite small to large businesses using banks and legacy fintechs to transact trillions of dollars in transaction volume annually.  A…

Conduit’s cross-border payments expand from LatAm into Africa with $6M round

BT, the U.K.’s former incumbent telecoms carrier, is picking up a major new investor today as telecoms companies look for stronger footing in the rapidly-shifting technology and communications market. Bharti,…

Bharti will become BT’s biggest shareholder after buying a 25%, $4B stake from Altice

X, the social media platform owned by Elon Musk, has been targeted with a series of privacy complaints after it helped itself to the data of users in the European…

Elon Musk’s X targeted with nine privacy complaints after grabbing EU users’ data for training Grok

Kazam, an Indian EV charging solution provider, has raised $8 million to expand its footprint in the country and enter Southeast Asian markets.

India’s Kazam powers up to roll out EV charging in Southeast Asia

Autonomy founder Scott Painter is spinning out a new company called Autonomy Data Services, or ADS, he tells TechCrunch in an exclusive interview. 

Why Scott Painter is selling a beach house to start a new vehicle software company

Heavy equipment manufacturer CNH Industrial has a long history of mergers and acquisitions, at times supervising legendary brands like Ferrari. But five years ago, as agtech was booming, the global…

How CNH’s ‘black belt’ M&A head makes deals

CrowdStrike’s president said he’ll take the trophy back to headquarters as a reminder that “our goal is to protect people, and we got this wrong.”

CrowdStrike accepts award for ‘most epic fail’ after global IT outage

Featured Article

Open source tools to boost your productivity

TechCrunch has pulled together some open-source alternatives to popular productivity apps that might appeal to prosumers, freelancers, or small businesses looking to escape the clutches of Big Tech.

Open source tools to boost your productivity

The valuation of Oyo, once India’s second-most valuable startup at $10 billion, has dipped to $2.4 billion in a new funding round, multiple sources told TechCrunch. The Gurugram-headquartered startup, which…

Oyo valuation crashes over 75% in new funding

Susan Wojcicki, a longtime Googler who spent nearly a decade as the CEO of YouTube, passed away Friday after a two-year battle with non-small cell lung cancer. Wojcicki, who was…

The tech world mourns Susan Wojcicki

While Amazon has continued releasing Echo devices, including an upgraded Spot announced last month, the company has taken its foot off the gas.

As Alexa turns 10, Amazon looks to generative AI

He really said that: When asked about the company’s “Plan B” if mortgage rates don’t fall, Redfin CEO Glenn Kelman responded, “Plan B is to drink our own urine or…

Redfin CEO promises to ‘drink our own urine’ if mortgage rates don’t fall

Turkey appears to have restored access to Meta-owned Instagram, after blocking the app on August 2.  Abdulkadir Uraloglu, the country’s minister of transport and infrastructure, posted today that the ban…

Turkey restores access to Instagram

Elon Musk doesn’t want Tesla to be just an automaker. He wants Tesla to be an AI company, one that’s figured out how to make cars drive themselves.  Crucial to…

Tesla’s Dojo, a timeline

OpenAI co-founder John Schulman has left the company for rival AI startup Anthropic. In addition, OpenAI co-founder and president Greg Brockman is taking an extended leave after nine years at…

OpenAI faces more leadership shake-ups

Featured Article

Maybe Friend wasn’t crazy for spending $1.8M on a domain after all

Avi Schiffmann, the founder and CEO of Friend, told TechCrunch over email that the purchase has already paid for itself.

Maybe Friend wasn’t crazy for spending $1.8M on a domain after all

Featured Article

One man decided to take on Google Maps, 20 years later OpenStreetMap is still going strong

From internet protocols and operating systems, to databases and cloud services, some technology is so omnipresent most people don’t even know it exists. The same can be said about OpenStreetMap, the community-driven platform that serves companies and software developers with geographic data and maps so they can rely a little…

One man decided to take on Google Maps, 20 years later OpenStreetMap is still going strong

This list only includes major penalties issued to tech firms under the GDPR. In recent years, some significant sanctions have also been issued on Big Tech

The 10 largest GDPR fines on Big Tech

The data breach is the latest security issue to beset CSC ServiceWorks over the past year, after multiple researchers found security bugs.

CSC ServiceWorks reveals 2023 data breach affecting thousands of people

Featured Article

After global IT meltdown, CrowdStrike courts hackers with action figures and gratitude

CrowdStrike tried to go back to business as usual at one of the world’s largest annual cybersecurity conferences, weeks after its massive global IT crash.

After global IT meltdown, CrowdStrike courts hackers with action figures and gratitude

Tragedy has again struck a famous Silicon Valley family. Former YouTube CEO Susan Wojcicki just passed away, according to social media posts by her husband, Dennis Troper, and by Google…

Former YouTube CEO Susan Wojcicki has passed away at age 56

This is the second cyberattack targeting the school device management service Mobile Guardian this year.

Student raised security concerns in Mobile Guardian MDM weeks before cyberattack

Featured Article

Smartwatches shipments see sharp decline in India

India’s wearable market declined in Q2, primarily because smartwatch are not attracting consumers.

Smartwatches shipments see sharp decline in India