Tim Sweeney: " Now Apple is demanding a 30% cut of all Patreon DONATIONS

Scope of Apple’s Cut and Recent Policy Change

  • Several comments note Apple is now enforcing a 30% cut on Patreon payments made via in‑app purchase, after a recent App Store terms change triggered by some antitrust/monopoly investigation (jurisdiction unclear).
  • Others say the written rules existed for years, but enforcement posture has changed.

Are Patreon Payments Really “Donations”?

  • One camp: If you expect ongoing content or perks, it’s effectively a purchase or tip, not a charity donation.
  • Others: When creators publish everything free and Patreon is just a “tip jar,” the payment is a donation in spirit.
  • Some distinguish “donation” (to causes/charities) vs “gift” (to individuals), but others argue that’s a tax/legal nuance, not everyday language.
  • Multiple comments say using the word “donation” in this controversy is emotionally loaded and somewhat manipulative.

Fee and Tax Breakdown

  • A simplistic “30% Apple + 30% Patreon + 30% tax = 34% left” claim is challenged with concrete examples from Patreon’s own fee tables.
  • Example paraphrased: on a $10 web pledge, Patreon plus payment fees eat ~14%, leaving most to the creator before income tax; with iOS in‑app purchase and Apple’s price bump to $14.50, Apple takes a large cut, but the creator still receives slightly more nominal dollars than from a $10 web pledge.
  • State and federal income taxes further reduce net income; the combined effect is significant but not as extreme as some claims.

Apple’s Role, Monopoly, and Fairness

  • One side: Apple provides real value (centralized subscription management, easy cancellation, unified billing) and can charge what the market bears; the real issue is monopoly/lock‑in, not the specific percentage.
  • Another side: Apple is “injecting itself as a middleman” and taxing revenue that should flow from patron to creator; this is compared to phone companies demanding a cut of business deals negotiated over their lines.
  • Debate over whether Apple’s behavior is truly monopolistic or just anti‑competitive and anti‑consumer; some call for breakup and utility‑style regulation of big tech platforms.

Comparisons to Tipping and Service Fees

  • Several analogies to restaurants and country clubs replacing tips with “service fees” that management keeps, harming frontline workers and degrading service.
  • One thread explores how card/payment system changes reduced casual employee “skimming,” while employer wage theft remains large; views differ on whether worker skimming was justified survival tactic or simple theft.

Patreon’s Own Fees and Alternatives

  • Some see Patreon’s ~8% platform fee plus payment and FX charges as reasonable for the service.
  • Others argue that at low pledge tiers $1–$3, Patreon’s effective cut can exceed 20%, which feels excessive for a relatively simple payments platform, especially compared with alternatives that charge less.

Motives of Platform Critics

  • A few comments argue that prominent critics of Apple are pursuing their own business interests, not public good, and that users/creators are pawns in a revenue fight.
  • Counterpoint: even if motives are self‑interested, creators and patrons would benefit if Apple’s cut were reduced or constrained.