Patreon doesn’t have ‘special contract’ with Apple to avoid App Store tax

From The Verge: When you open Patreon’s iPhone app and subscribe to a creator, Apple doesn’t step in the way and take a cut. It turns out, that’s not because of some behind-the-scenes arrangement between the two companies — Apple’s App Store team just decided to give Patreon a pass.

“I wish we had some special contract with Apple. We don’t,” Patreon CEO Jack Conte said on Decoder, a podcast from The Verge. “We have to deal with the App Store policies and review process like anybody else.”

On iOS, Apple takes up to a 30 percent cut of in-app payments for digital goods. That means creators on platforms like Twitch, Twitter, and Facebook can expect to lose 30 percent of whatever a fan is paying them to Apple. As more platforms add tools for creators to get paid, the so-called Apple tax has started to look more domineering, taking money away from individual creators and not just huge businesses.

Patreon has been one of the odd exceptions to the rule. The platform’s iOS app has been able to accept payments outside of Apple’s in-app purchase system, which lets the company walk around that 30 percent cut. Conte suggests this may be allowed because users don’t come to Patreon to discover creators and content. “A lot of the actual engagement is happening on other platforms ... So it’s just not the primary behavior that’s happening on Patreon,” Conte said. The Verge has reached out to Apple for comment.

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