Patreon Gets Sucked Into Complaints Over Apple App Store Taxes

Recently, complaints about the 30% commissions Apple and Google app stores charge for digital purchases through apps has spread to the creator economy. The hullabaloo has resurfaced this question: are some apps, notably Patreon, exempt from these fees? And if so, why?

To reprise: over the last few weeks, against a backdrop of barbs (and one lawsuit) thrown by the founders of Facebook and Fortnite-maker Epic Games against Apple’s App Store, CEOs of smaller creator economy startups have also started to protest these fees. Cameo CEO Steven Galanis said the fees are “putting a tax on creators.” Gumroad CEO Sahil Lavingia called the fees “the number one bottle neck to the creator economy.” Fanhouse founder Jasmine Rice bluntly started her Twitter thread, “#F---Apple”. 

Patreon CEO Jack Conte hasn’t weighed in on what’s become the topic du jour. But we’re eager to get his take. That’s because some have suggested his service, which lets artists and musicians charge their fans for access and extra content, has been able to side-step Apple App Store rules that, with some exceptions, prevent apps from using off-site payment mechanisms, where the apps can avoid the 30% fee. 

Tweeted Fanhouse’s Rice, “Patreon is a creator monetization app that doesn't pay Apple the 30%, yet is allowed to remain on the app store.”