Today, Apple has decided to waive of App Store’s 30% cut for in-app purchases on Facebook app’s Paid Events. This relaxation is valid until December 31, 2020. Facebook launched the new Paid Events feature to the social platform in August for small businesses to organizing online events that their audiences pay for to watch or participate in, Paid Events. The social media company launched the online events section on Facebook as a free to use a feature to help the small creators, trainers, artists, businesses, and others affected by the global COVID-19 pandemic.
However, App Store 30% commission rate policy for all in-app purchases prevented Facebook to launch the feature for free and the platform did not shy away from mentioning that on the interface of the update and on social media. The company said,
“We asked Apple to reduce its 30% App Store tax or allow us to offer Facebook Pay so we could absorb all costs for businesses struggling during COVID-19. Unfortunately, they dismissed both our requests and [small businesses] will only be paid 70% of their hard-earned revenue.”
Apple Wavies of 30% commission for Paid Events on Facebook
A report by CNBC states that Facebook has confirmed that Apple has temporarily decided not to charge 30% cut from Paid Events online. The social media giant also explained that relaxation is only for three months and will not apply to paid events hosted by gaming apps. Joe Osborne, a Facebook spokesperson said,
“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.”
As an effort to reduce the impact of COVID-19 on small business owners, Apple agreed to waive off the 30% commission rate for purchases via Paid Events on Facebook.
“An Apple spokesperson told CNBC it reversed its decision on the Facebook event fees due to the pressures businesses are facing from the pandemic, and that Apple wants to give those businesses more time to adapt to digital business models. The spokesperson also said its App Store rule that requires the 30% cut to Apple does not apply to ticketing real-world events, only digital events, and Facebook has until the end of the year to implement in-app payments for real-world events. Airbnb and ClassPass also have until the end of the year to add the in-app payments for events, Apple said.
“The App Store provides a great business opportunity for all developers, who use it to reach half a billion visitors each week across 175 countries,” Apple said in a statement. To ensure every developer can create and grow a successful business, Apple maintains a clear, consistent set of guidelines that apply equally to everyone.”
Facebook began to publically criticize Apple’s App Store policy immediately after the rejection of the Paid Events feature in the review phase for violating its rules. Recently, the Cupertino tech giant is not only defending its 30% commission rate but also focusing on taking command of the narrative accusing the company of creating a monopoly by unhappy developers like Spotify, Epic Games, Facebook, and others.