January 18, 2021

PR Headline News

Top Stories Without The Fluff

Facebook says Apple refused to waive 30% fee on new feature


Facebook’s CEO Mark Zuckerberg speaks during the F8 Facebook Developers conference on April 30, 2019 in San Jose, California.

Justin Sullivan | Getty Images

Facebook on Friday took a shot at Apple, saying the company will only be able to pay small businesses a portion of sales from a new paid events feature as a result of the iOS App Store’s policies. 

“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,” ,” said Fidji Simo, the head of the Facebook app in a blog post. “Unfortunately, they dismissed both our requests and SMBs will only be paid 70% of their hard-earned revenue.”

Unlike Apple, Google will not take a cut of sales through its Android service. As a result, Facebook said it would make it clear to users in the iOS version of its app that Apple is taking a cut of their sales. 

A screenshot of the iOS version of the feature says “Apple takes 30% of this purchase.”

Facebook’s shot is the latest blow in a long-running feud between the social media company and Apple. Facebook last month warned investors that its revenue could be impacted by an upcoming feature in Apple’s iOS 14 that could make it more difficult for the social media company to target ads to its users. 

This move makes Facebook the latest company to criticize Apple’s policy to take a 30% cut of all sales conducted through its iPhone and iPad products. Apple’s App Store is the only way to install software on iPhones, and in recent weeks, top app makers have started to revolt against its rules and the 30% cut it takes from payments.

On Thursday, Epic Games, the maker of hit video game Fortnite, sued Apple after the company removed Fortnite from the App Store. Apple removed Fortnite after the video game introduced a way for gamers to pay for features directly to the company, circumventing Apple. 

Match Group, makers of Tinder and Hinge, Spotify, and Microsoft have also called for a closer look into App Store business practices.

Apple did not respond to a request for comment. 

CNBC’s Kif Leswing contributed to this report.

This news is developing. Please check back for updates.



Source link