Facebook, which is launching a new feature that will allow page owners and event organizers to organize paid online events, says Apple is unwilling to waive its App Store fees or let the company use its own in-app payment system, which would enable event organizers to hold onto more of their revenue.
“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,” says Fidji Simo, the head of Facebook’s main app, in a statement.
Simo adds that to support small businesses and creators, Facebook won’t charge fees from paid online events for the next year. Small businesses will also retain 100% of the revenue they generate from paid online events. To counteract Apple’s refusal to waive fees, Facebook will label online event ticket purchases on iOS with a message that reads, “Apple takes 30% of this purchase.”
In addition, Simo believes that companies need to be transparent, letting consumers know where their money is going, especially when they are trying to support small businesses that may be struggling. Given that Apple is a $2 trillion company, people need to know that the company is receiving 30% when they are purchasing a ticket for $20 for an online event.
The new event feature has been designed for page owners to “create an online event, set a price, promote the event, collect payment and host the event, all in one place.” The initiative hopes to help small businesses, as well as entertainment and live event companies, offset the devastating economic effects of the coronavirus pandemic, which resulted in the closure of music venues, event locations, and other public spaces. Facebook reports that live broadcasts have doubled in June compared to last year. The company says pages in 20 countries can begin charging for online events immediately.
In the past week, Apple has repeatedly found itself in hot water. After Apple removed Epic Games’ Fortnite from the App Store when Epic applied its own in-app payment processing system, Epic filed an antitrust lawsuit against the company, as well as Google for doing the same.
Earlier this month, Facebook also blasted Apple for forcing the company to remove a component of its Facebook Gaming app that allows users to play mini-games via the browser-based Instant Games platform in order to get the software approved in the App Store. Facebook has appealed the decision but has yet to receive a response from Apple.
Source: The Verge
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