Fanhouse is an app that allows content creators such as influencers to connect with fans. Fans then pay via the app to view exclusive content. A kind of OnlyFans, but without the sexual aspect. It is a way for creators to earn money more easily than via platforms such as Twitter and Instagram. But like any app, Fanhouse must also comply with the App Store rules that still apply. After months of haggling with Apple, the makers of the app have decided to impose a hefty surcharge on in-app purchases. These are therefore 50% more expensive than if you purchase them via the website.
In-app purchases Fanhouse 50% more expensive due to App Store rules
The makers are loud and clear on Twitter: because of the ‘bullshit from Apple’ they say they are forced to make in-app purchases considerably more expensive. Fanhouse pays makers 90% of all purchases that users make and therefore keeps 10%. But because Apple also takes 30% of every in-app purchase, that would no longer be feasible. That is why the makers have devised a system that discourages users from making purchases via the website rather than via the app.
as a result of apple's bs, we're releasing a currency on our mobile app called coins. implementing this was the only way we could stand by our creators & values without apple taking our app down.
here's how coins work, and how users can avoid apple's exploitative tax. 🧵(1/9)
— fanhouse (@fanhouse) January 26, 2022
A few months ago, Fanhouse was able to add a button to the app that directs users to the website so they can subscribe there. This is against App Store rules, but Apple's review team overlooked this for a long time. When Apple noticed the button and the violation of the rules, the makers were forced to use Apple's payment system and thus pay a 30% commission to Apple. The makers resisted and came up with all kinds of suggestions that Apple did not want to go along with.
Ultimately, the makers decided, on the day the App was to be removed from the App Store, to allow in-app purchases with Apple's payment system. But for that they have introduced a system with coins. So you don't buy anything directly in the app. You first buy a kind of digital currency that you can then use in the app to unlock content. Two thousand coins cost $30 in the app, while you pay $20 via the website. That is 50% more expensive. The makers hereby comply with the rules of the App Store, but at the same time hope that the large price difference will deter users and therefore buy the coins via the website.
It's fucked up, and we were forced to implement IAP today or not even exist as an app. We've been fighting this for months, and we will keep trying to fight it. We're talking to senators, we're supporting the Epic case, and we're remaining transparent with all of our users. (20/)
— jasminericegirl 🍚 (@jasminericegirl) January 26, 2022
In the past, there have been many apps that make their in-app purchases more expensive than the web purchases. A well-known example is Spotify, which for a long time charged 30% more for a Premium membership in the app. But the 50% surcharge is a clear protest against the App Store rules.
Support the Epic lawsuit
The makers of Fanhouse are also behind Epic Games, the game publisher who in August 2020 deliberately broke the App Store rules with Fortnite and went full-on attack against Apple. What followed was a lawsuit, in which Apple was forced to change the App Store rules and allow third-party payment methods by December 9, 2021. Apple asked for a postponement while the appeal is still pending. The judge initially did not agree with this, but in the end Apple was given extra time and external payment methods are not yet possible. Meanwhile, the ACM forced the Netherlands to allow other payment methods for dating apps. Apple adjusted the rules, but the ACM is not yet satisfied with this. The consequence? A multimillion-dollar fine that can run up to €50 million each week.