Apple agrees to delay 30% cut of live event transactions on App Store

Posted:
in General Discussion edited September 2020
Apple has temporarily halted its decision to charge a 30% commission of paid virtual events hosted through apps on iOS, for not just Facebook, but any event stream.

Credit: Unsplash
Credit: Unsplash


In August, Apple blocked an app update for the Facebook app because it contained a message advising users that Apple takes a 30% cut of in-app purchases. Specifically, the message concerned live events hosted by companies or small businesses.

Now, Facebook says Apple has temporarily reversed its decision to take a 30% cut of live event transactions. An Apple spokesperson told CNBC that it halted the commissions due to the pressures that businesses are facing from the coronavirus pandemic.

The spokesperson added that the 30% commission doesn't apply to ticketing for real-world events, only those that are held within App Store apps in a virtual fashion. Along with Facebook, all apps Airbnb have until the end of the year to add in-app payments for digital-only events that are subject to the cut, including Airbnb and ClassPass.

Google, for its part, agreed not to take its standard 30% cut of event transactions through the Android version of the Facebook app.

Facebook took the opportunity to take a swipe at Apple, saying that the company "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."

The social media giant has been increasingly critical of several facets of Apple's business model. It has called out Apple's iOS 14 privacy features as a threat to advertiser revenue, and it suggested on Friday that the inability for users to set Facebook Messenger as their default messaging app is anti-competitive.

Amid Apple's legal saga with Epic Games over the 30% in-app commissions, Facebook CEO Mark Zuckerberg said the App Store deserves scrutiny because it charges "monopoly rents," and stifles innovation and competition.

Update September 25 2:40 P.M. Eastern time Apple has clarified that the suspension of fees is on all virtual events, not just Facebook's.

Comments

  • Reply 1 of 16
    gatorguygatorguy Posts: 24,388member
    Not at all surprised that Apple reconsidered. I don't think it has so much to do with Facebook as it does with the PlayStore (Google) waving their cut in the interest of "small business support" and the resultant bad PR if Apple didn't do the same. 
    CloudTalkin
  • Reply 2 of 16
    This ‘house of cards’ 30% nonsense is going to come crashing down. 
  • Reply 3 of 16
    sflocalsflocal Posts: 6,110member
    Think that Facebook will reduce the price they charge for ads on their platform by 30% to help us "struggling businesses in this time of need"?


    pujones1Rayz2016Dogpersonuraharawatto_cobraDetnator
  • Reply 4 of 16
    Facebook CEO Mark Zuckerberg said the App Store deserves scrutiny because it charges "monopoly rents," and stifles innovation and competition.
    I think Zuck misspoke. I believe he meant it stifles fb spying and can’t compete with Apple on merit.  
    pujones1BeatsDogpersonuraharawatto_cobraDetnator
  • Reply 5 of 16
    rain22 said:
    This ‘house of cards’ 30% nonsense is going to come crashing down. 
    Fact, opinion, speculation, or just your wish?
    BeatsDogpersonuraharawatto_cobraDetnator
  • Reply 6 of 16
    normmnormm Posts: 653member
    This approach is stupid.  It winds up forcing services onto the Web that work better in-app.  Like buying ebooks, or running games remotely.  Apple used to say that they don't set out to make money, they set out to make the best products, and making money is a consequence.  This is not making the best products.

    edited September 2020 elijahgwatto_cobra
  • Reply 7 of 16
    Quit my facebook, whatsapp and instagram. Kept my other services: i’m sure facebooks’ haughty speak is having the intended effect and not at all making people more aware how scummy their business model is. /s
    BeatsJanNLwatto_cobra
  • Reply 8 of 16
    rain22 said:
    This ‘house of cards’ 30% nonsense is going to come crashing down. 
    Goodbye, troll.
    BeatsDogpersonwatto_cobraDetnator
  • Reply 9 of 16
    I'm so glad I'm facebook free. Now if I could only block all mentions of this company and the ghoulish people involved.
    BeatsDogpersonwatto_cobra
  • Reply 10 of 16
    BeatsBeats Posts: 3,073member
    rain22 said:
    This ‘house of cards’ 30% nonsense is going to come crashing down. 

    Explain how it's nonsense. This is as moronic as saying businesses charging a fee to stay profitable is nonsense.
    Dogpersonuraharawatto_cobraDetnator
  • Reply 11 of 16
    Apple created the App Store and should be able to do whatever they want with it.
    Dogpersonuraharawatto_cobraDetnator
  • Reply 12 of 16
    flydogflydog Posts: 1,132member
    sflocal said:
    Think that Facebook will reduce the price they charge for ads on their platform by 30% to help us "struggling businesses in this time of need"?


    Advertisers determine the maximum cost per click for ads so feel free to reduce your bid by 30%, or even 50%. You pick the discount. 
  • Reply 13 of 16
    flydogflydog Posts: 1,132member

    rain22 said:
    This ‘house of cards’ 30% nonsense is going to come crashing down. 
    Fact, opinion, speculation, or just your wish?
    You left out trolling. And if you feed them they will keep coming back. 
    DogpersonRayz2016Gilliam_Bateswatto_cobraDetnator
  • Reply 14 of 16
    Rayz2016Rayz2016 Posts: 6,957member
    normm said:
    This approach is stupid.  It winds up forcing services onto the Web that work better in-app.  Like buying ebooks, or running games remotely.  Apple used to say that they don't set out to make money, they set out to make the best products, and making money is a consequence.  This is not making the best products.

    What Apple thought you might work out for yourself: it costs money to make the best products. Lots of money. 
    watto_cobraDetnator
  • Reply 15 of 16
    Rayz2016Rayz2016 Posts: 6,957member

    gatorguy said:
    Not at all surprised that Apple reconsidered. I don't think it has so much to do with Facebook as it does with the PlayStore (Google) waving their cut in the interest of "small business support" and the resultant bad PR if Apple didn't do the same. 
    Well, since you brought up the Play Store, it seems that all these folk complaining about having to pay for app hosting has got Google to look a little more closely at the ones circumventing their fees for years:

    https://www.bloomberg.com/news/articles/2020-09-25/google-to-increase-push-for-apps-to-give-cut-of-in-app-purchases

    If this turns out to be true (and it’s 70-30 against because, y’know … Bloomberg) It’ll be interesting to see if these companies attack Google over this, or just quietly use alternative app stores, as Google suggests. Let’s see if they really believe that having an official App Store to leach from has no intrinsic value. 

    watto_cobraDetnator
  • Reply 16 of 16
    Rayz2016Rayz2016 Posts: 6,957member

    rain22 said:
    This ‘house of cards’ 30% nonsense is going to come crashing down. 
    Another one for ignore list. 
    watto_cobraDetnator
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