Apple Rejects Facebook’s Feature Update that Informs Users that Apple will Charge the 30% Transaction Fee

Apple is currently defending (pretty much successfully) the 30% cut it charges for every transaction that happens via its App Store against the lawsuits filed by Epic Games. Many companies, including Epic and Spotify, accuse Apple of using the transaction costs to produce competitive advantages for its own services. Google charges a similar amount for transactions that happens through its Play Store, but it is not as rigid as Apple.

Due to COVID-19, Facebook launched a feature that lets businesses, especially small business to host paid online events in an effort to build some of the business that was lost due to lockdown in major cities. Facebook wanted to give all proceeds generated via these meetings to go directly to the businesses, which would help in cutting costs for many businesses in these trying times. It appears Google accepted Facebook’s proposal while Apple is adamant in charging the transaction fee. Small businesses on the web and Android would receive 100% of the revenue, while those who are using IOS will have to pay the transaction fee.

via CNBC

Now Apple rejected Facebook’s application update that tried to inform the users that Apple will charge its transaction fees. Whenever one tries to purchase access, the application informs that Apple takes 30% of this purchase. It is written just below the purchase button. Facebook’s spokesperson told CNBC, “Now more than ever, we should have the option to help people understand where the money they intend for small businesses goes.” Earlier this month, Epic tried to dodge the ‘Apple/Google Cut’ by allowing its players to use its payment services. Both companies removed Fortnite from their respective application stores.

Apple maintains that it tries to keep a level playing field for all developers, and the 30% fee is standard for everyone.


Mohsin Naeem

Mohsin is a budding writer who has a thing for PC hardware and gaming. He has been building computers according to the need of his clients and is well versed in the area. He is an economics major and the analytical skills he learned from his academics adds to his writing and gives him a unique way to observe the tech industry.
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