Facebook objects to Apple's App Store fees

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Facebook has joined a growing group of companies that have started to publicly complain about the 30% fee Apple charges on payments made through the App Store.

These complaints came in the middle of a blog post about the social network’s new feature supporting paid online events. Facebook said that, to support struggling businesses, it won’t charge any fee for these events, at least for the next year, which means these businesses will keep 100% of the payments made directly through the website or the app on Android.

But Facebook complained that this won’t be the case on iOS, due to the App Store fee, and took its stance directly to Apple through its corporate blog:

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 our requests and small and medium businesses will only keep 70% of their hard-earned revenue. Because this is complicated, while Facebook is waiving its fees, we will make all fees clear in our products.

To that end, the post includes screenshots of what the event payment flow will look like on iOS and Android. On Android, it says: “Facebook doesn’t charge any fees for this purchase,” while on iOS it says, “Apple takes 30% of this purchase.”

paid online events payment flow

Payment flow on iOS (Left) and Android (Right)

This happened about 24 hours after Fortnite was removed from the App Store, after Epic Games introduced direct payments in its hit title. It seemed Epic was intentionally trying to pick a fight, with the company quickly announcing a lawsuit against Apple and releasing a short in-game video parodying Apple’s famous 1984 commercial, casting Apple as the villain.

Source: https://techcrunch.com/2020/08/14/facebook-vs-apple/