Facebook wants to help digital creators sidestep Apple's 30% commission on digital goods
Facebook hopes to promote "offline transactions," between creators and companies, allowing creators to sidestep Apple's 30% in-app purchase fee.
Apple's 30% fee on in-app purchases has always been a hot button issue, with many companies attempting to figure out ways to skirt the fee entirely. One notable case was Epic, who allowed customers to purchase items via credit card from within the Fortnite app. Unsurprisingly, this resulted in Fortnite being removed from the App Store, and spurred an ongoing legal battle.
Facebook, and its subsidiary, Instagram, now have plans to sidestep the fee, too, but without incurring the wrath of Apple's legal team.
"When there are digital transactions that happen on iOS, Apple insists that they take 30% of that." Adam Mosseri, Instagram's CEO told CNBC. "There's a very few number of exceptions. For transactions that happen in iOS, we're going to have to abide by their rules... but in general we're going to look for other ways to help creators make a living and facilitating transactions that happen in other places."
To avoid the 30% cut on digital goods, Instagram may push creators to connect with customers outside of the app, which would enable them to skirt Apple's commission fee and still do business. Facebook would likely create a framework for creators to use that could be mutually beneficial to both creators and Facebook itself, who would be able to charge its own commission fee.
CNBC notes that Facebook has yet to disclose what cut it would take from creators. However, the report does note that the cut would be less than 30%.
Facebook's framework would exist solely for those who create digital content, ranging from artwork to services. Sales of physical goods do not incur a 30% fee on Apple's platforms.
Facebook is known as one of several companies leading the charge against Apple. In May, it was discovered that the social media giant would consider adding new screens for both its main app and Instagram, to educate users that enabling tracking under Apple's App Tracking Transparency policy will "help keep" the apps free to use.
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Apple's 30% fee on in-app purchases has always been a hot button issue, with many companies attempting to figure out ways to skirt the fee entirely. One notable case was Epic, who allowed customers to purchase items via credit card from within the Fortnite app. Unsurprisingly, this resulted in Fortnite being removed from the App Store, and spurred an ongoing legal battle.
Facebook, and its subsidiary, Instagram, now have plans to sidestep the fee, too, but without incurring the wrath of Apple's legal team.
"When there are digital transactions that happen on iOS, Apple insists that they take 30% of that." Adam Mosseri, Instagram's CEO told CNBC. "There's a very few number of exceptions. For transactions that happen in iOS, we're going to have to abide by their rules... but in general we're going to look for other ways to help creators make a living and facilitating transactions that happen in other places."
To avoid the 30% cut on digital goods, Instagram may push creators to connect with customers outside of the app, which would enable them to skirt Apple's commission fee and still do business. Facebook would likely create a framework for creators to use that could be mutually beneficial to both creators and Facebook itself, who would be able to charge its own commission fee.
CNBC notes that Facebook has yet to disclose what cut it would take from creators. However, the report does note that the cut would be less than 30%.
Facebook's framework would exist solely for those who create digital content, ranging from artwork to services. Sales of physical goods do not incur a 30% fee on Apple's platforms.
Facebook is known as one of several companies leading the charge against Apple. In May, it was discovered that the social media giant would consider adding new screens for both its main app and Instagram, to educate users that enabling tracking under Apple's App Tracking Transparency policy will "help keep" the apps free to use.
Follow all the details of WWDC 2021 with the comprehensive AppleInsider coverage of the whole week-long event from June 7 through June 11, including details of all the new launches and updates.
Stay on top of all Apple news right from your HomePod. Say, "Hey, Siri, play AppleInsider," and you'll get latest AppleInsider Podcast. Or ask your HomePod mini for "AppleInsider Daily" instead and you'll hear a fast update direct from our news team. And, if you're interested in Apple-centric home automation, say "Hey, Siri, play HomeKit Insider," and you'll be listening to our newest specialized podcast in moments.
Comments
Amazon has the Kindle reader app on all of Apple’s platforms but you can’t purchase books directly from Amazon from within Amazon’s apps. You have to purchase books on Amazon and then they get delivered and maintained out-of-band into your Kindle apps. Other than the clumsiness for customers it does work.
If you want to call it a “framework” go ahead. As a customer I call it a workaround or a kluge, but it’s worth it for me because Amazon’s Kindle reader apps are far superior to anything Apple has on these same platforms. It’s not even close.
The big difference between what Amazon is doing and what Facebook is trying to do is that Amazon’s “framework” is their massive online store. Facebook doesn’t have a store. But if they had a store and had a way for their herd of data cattle to consume the social silage they feed them, they wouldn’t find themselves beholden to Apple. Heck, they could do it using web technology, just like Amazon does.
Face it, Facebook is just plain lazy and doesn’t want to do the work necessary to take control over their own destiny. They have all that cash on hand and unquestioned influence and loyalty from their compliant herd. But still they refuse to invest in the proper care and feeding of their own herd. It’s cruel. It’s mean. It’s pathetic. It’s Facebook.
I doubt it could be seen as such, as Apple does not really compete with Facebook… And their service is still available via web browser. However, it would be an anti-user move as it is a bit more convenient to use the app over the website.
So this is one mega-corporation trying to shift a revenue share from another mega-corporation to them, for the slight benefit of large enterprise developers.
And yes, I am firmly stating that if you take in more than $1MM in revenue per year from being a developer, then you are not a "Little Guy"