In April 2023, Reddit made an announcement that landed with all the grace of a cat into a swimming pool. Instant, loud backlash ensued — from developers, moderators, and users alike. Thousands of Reddit forums went dark in protest for two days or longer, including popular ones like r/iPhone, r/gaming, and r/Music, to show that they were willing to take action if the company did not reconsider.
What exactly was this controversial announcement? Essentially, Reddit would be changing its API (Application Programming Interfaces) pricing structure as part of larger changes to its Terms of Service (ToS). Specifically, third-party apps would have to start paying for API access. This change, enforced on July 1, 2023, has had significant impact on third-party developers, who relied on the API to create apps and tools that make Reddit more accessible and enjoyable. For example, many moderators, or “mods,” rely on apps like Apollo to run their boards.
In a post, Huffman noted, “Reddit needs to be a self-sustaining business, and to do that, we can no longer subsidize commercial entities that require large-scale data use.” According to him, just the infrastructure cost of “API calls from third-party apps” runs north of $10 mn. Huffman also scheduled an AMA (Ask Me Anything) to clarify his position further. Unfortunately, it devolved into a spectacular disaster, an internet version of a pie in the face. Redditors on the thread accused Huffman of a history of acting in bad faith, reneging on promises, and more. Several developers claimed that their attempts to contact Reddit had been doggedly ignored.
A Quick Lowdown on the Reddit API
APIs are protocols or rules that enable different software applications to communicate and interact with each other. They work as a bridge, allowing the sharing of data and functionality between different systems or applications. For example, when you use an app like Uber, it uses the Google Maps API to show you the map. In this case, the Uber app is making a ‘call’ to the Google Maps API, and in response, Google sends back the data required to display the map in Uber.
Reddit’s API allows third-party developers to create apps and tools that can “talk” to Reddit and access its data. These apps or tools might enable users to access Reddit in different ways or provide additional features that enhance the Reddit experience. When it was launched seven years ago, Reddit offered the API for free. But in April 2023, it was announced that the company would start charging for API access.
Reddit is entitled to carry on with a business strategy that generates revenue. But is this the right way to do it?
If third-party developers can’t afford the prices, it stifles innovation as these developers might have to limit their use of the API, which in turn could affect the functionality of their apps or even lead to the discontinuation of some apps. It also discourages new developers from creating apps that interact with Reddit, inhibiting the growth and development of the Reddit ecosystem.
Reddit Remains Resilient
The response to Reddit’s business strategy change has been overwhelmingly negative. Despite this drama, however, Reddit has not backed down and continues to defend the changes, calling them critical to ensuring the long-term health of the site. What’s more, the company seems rather unaffected and “amazingly resilient.” It raises interesting questions as to why this is so.
A few critical factors seem to be working in its favor, despite a move so widely perceived as unethical and even malicious.
Lack of Comparable Alternatives: Reddit’s uniqueness lies in its community-centric nature, focusing on discussions around hobbies or trade local news and information, which is a format not replicated by other major social networks like Facebook, Instagram, or Twitter. This makes Reddit irreplaceable for many users; they simply cannot replicate their communities elsewhere. In fact, some users have chosen to stay with the platform for this very reason, despite discomfort with certain changes.
Predictable User Patterns: Initial reactions to radical policy changes to any platform are always intense, in an almost unsustainable fashion. However, this is invariably followed by some cooling off, with users adapting after weighing the pros and cons and sometimes platform making some concessions. Reddit itself has an extensive history of surviving these upheavals, and this latest event seems no different.
Should You Stay or Should You Go?
For the most part, this conflict has unfolded in a classic David vs. Goliath manner. In one corner, we have a tech titan, Reddit, with its millions of users and massive infrastructure. In the other corner, the small independent developers and subreddit mods, the unsung heroes who use the API to build the tools that make Reddit what it is. These are the folks who enhance Reddit’s usability and accessibility, often out of sheer love for their communities. This change in API pricing leaves them squeezed out, forced to either pay up or shut down.
Some third-party apps, like Apollo, have had to bid farewell. 
Some mods have chosen to stay but continue to protest in innovative ways, as a point of principle. For instance, a few subreddits such as r/military changed their community’s label to NSFW, prompting Reddit to threaten action.
The bottom-line is this. As a business, Reddit is entitled to carry on with a business strategy that generates revenue. But is this the right way to do it? As one moderator of r/blind has pointed out, without the relevant third-party apps, they may be “left with no choice but to step down and close my 17 year old account.”
To accommodate for this, Huffman stated that developers creating accessibility apps would continue to have free API access. The company is also working on native accessibility and moderation features to reduce dependency on third-party services that can’t afford the new data fees. According to company spokesperson Tim Rathschmidt, Reddit is open to dialogue with developers who are “willing to work with us and follow our terms.”
As we’ve seen in the past, the internet can be a great leveler and this move directly works against that democratic aspect. The outcome of this saga will be interesting to watch as it might set a precedent for similar scenarios in other digital platforms. Without a doubt, this chapter in Reddit’s history is far from over. It is possible that the changes may be modified if Reddit sees a significant decrease in traffic or engagement, especially if a viable alternative platform comes into play. As of now, it seems that many developers and mods have chosen to stick around and find out.
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Written By: Ateendriya
