Fanhouse launches 50% surcharge for in-app purchases

Content creator Fanhouse protested against App Store's 30 per cent commission in 2021, introducing in-app purchases, including a 50 per cent surcharge, to compensate for Apple's cuts.

Apple has threatened to remove Fanhouse from App Store in 2021 if it does not make its in-app purchases in line with its developer's guide. The company announced on Wednesday that it would solve the problem.

Fanhouse, an app that allows creators to make money by providing exclusive content to paid subscribers, says creator subscriptions can now only be purchased through coins in the app. If you buy online, the conversion rate of coins is 1:1. If they are purchased within the application, their cost will increase by 30%.

Fanhouse said it "strongly encourages" users to buy coins online because it will "avoid charging".

The company said the announcement of the new purchase model came on the day it was removed from App Store because of non-compliance.

As early as June 2021, Fanhouse launched a campaign to protest Apple's cuts in apps and in-app purchases after the Cupertino technology giant threatened to delete it by the end of 2021 if it did not comply with the rules. At the time, it was reported that Apple was working with Fanhouse to develop a solution.

In 2021, Fanhouse said Apple's layoffs hurt content creators. The company even said that Apple could take 30% of its profits instead of those of the creators on the platform. It is unclear how Apple earns 15 per cent of its creator's millionth sales, which applies to the Fanhouse platform.