Saturday, 26 September 2020
Apple is currently facing increasing backlash for its App Store fees. In what may seem like a small victory, Apple said it will not take the usual 30% cut from Facebook’s online events. This is for Facebook’s move to allow small businesses affected by the pandemic to earn money from online events on the platform.
Facebook also said all earnings will go to the page owners and not the company till August 2021. The payment would however be lesser for events signed up on iOS devices as a 30% cut would go to Apple due to its App Store policy. Facebook had proposed reducing the App Store cut or make Facebook Pay the payment option but Apple refused both.
Apple has now agreed to drop its 30% fee for online events on Facebook. The payment will now be processed through Facebook Pay making it possible for businesses to get all their earnings. Apple’s arrangement for Facebook Pay will continue till December 31. This however excludes gaming creators which Facebook also did for its paid online events. Facebook however does not seem entirely happy with this decision.
“This is a difficult time for small businesses and creators, which is why we are not collecting any fees from paid online events while communities remain closed for the pandemic. Apple has agreed to provide a brief, three-month respite after which struggling businesses will have to, yet again, pay Apple the full 30% App Store tax.” Facebook spokesperson Joe Osborne was quoted by TechCrunch as saying.
This isn’t the end for companies fighting Apple’s App Store policies. Companies like Spotify, Match Group and Epic Games have now formed the Coalition for App Fairness highlighting Apple and Google’s app store rules that should be changed. Among the rules highlighted, Apple’s 30% cut for apps and subscriptions has also been criticised.