Fanhouse criticised Apple's 30% commission on payments to creators

Fanhouse criticised Apple's 30% commission on payments to creators

Fanhouse, a platform for content creators, has launched a campaign to protest Apple's 30% App Store commission on payments to creators.

According to the founders of Fanhouse, a platform that allows creators to be paid by their fans for exclusive content, Apple has threatened to remove them from the App Store by August if they do not give a 30% share on payments made to creators on the platform.

"People who are relying on their creative income as a means to support themselves will now find themselves being taxed by Apple more than they would by their own government. Someone making $10,000 would now only make $6,000," Jasmine Rice, the company's founder, stated. "For some people, that difference can be life or death."

Fanhouse is a platform that offers creators to create a private social media page that only paying fans can access. The app, which was founded in 2020, made it onto the App Store without Apple recognising that it enabled payments that were not available through Apple's in-app purchase platform.

Rice claims that Fanhouse only gets 10% of the revenue generated by creators on the platform. She went on to say that she doesn't mind Apple collecting 30% of the company's revenue, but not 30% of the money produced by creators.

Apple said it is working with Fanhouse to bring the app into compliance with its guidelines, according to The Verge. It further stated that Fanhouse had previously been denied due to a similar infringement of the guidelines.

On the App Store, Apple takes a 30% cut of the app and in-app purchases, a commission that has become a source of dispute for developers. The Epic Games v. Apple lawsuit was sparked by Apple's demand that developers utilise its own proprietary payment platform in exchange for the fee.

In 2020, Apple launched a small business programme that has reduced its commission to 15% for app developers who make less than $1 million in revenue through the App Store. Fanhouse earns more, but it distributes nearly all of its profits to its creators.

Apple's guidelines didn't specifically encompass content creators until Monday when the company changed its regulations to allow creator-made content as long as it's regulated and Apple gets its 30% cut.

Rice, for one, is urging other creator-driven companies to pressure Apple to reconsider its policy.

Rice stated, "Apple, take your heavy cut from our profits, or allow us payment exceptions like you do other platforms," adding further she quoted, "But please, let creators have a place where they can earn a fair income for their content. These people deserve the lion's share of their earnings and nothing less."

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