Last month, Facebook introduced support for paid online events — and because many of the businesses offering those events have struggled during the coronavirus pandemic, the company also said it would not collect fees for the next year. At the same time, it complained that Apple had “dismissed” its requests to waive the App Store’s customary 30% fee on in-app purchases.
Today, Facebook is announcing a reversal on Apple’s part: Online event fees will be processed through Facebook Pay, without Apple collecting its 30% cut, meaning businesses will receive all of the earnings from their online events, minus taxes. This arrangement will last until December 31 and will not apply to gaming creators.
The news comes after Facebook publicly pressured Apple to change its stance. It even submitted an iOS app update stating that “Apple takes 30% of this purchase” in the events payments flow. (Facebook said Apple rejected the update for including information that’s “irrelevant” to users.)
And while the two companies appear to have come to an agreement, today’s statements from Facebook are still a bit barbed.
“This is a difficult time for small businesses and creators, which is why we are not collecting any fees from paid online events while communities remain closed for the pandemic,” said Facebook spokesperson Joe Osborne. “Apple 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.”
Similarly, in discussing the exception for gaming creators, Facebook Gaming Vice President Vivek Sharma said, “We unfortunately had to make this concession to get the temporary reprieve for other businesses.”
When asked about the change, Apple provided the following statement: “The App Store provides a great business opportunity for all developers, who use it to reach half a billion visitors each week across 175 countries. To ensure every developer can create and grow a successful business, Apple maintains a clear, consistent set of guidelines that apply equally to everyone.”
More specifically, Apple said it’s giving Facebook until the end of the year to implement in-app payments for these events and bring them into compliance with App Store rules.
This also comes as Fortnite-maker Epic Games is waging a legal battle and publicity campaign against Apple’s App Store fees, with Fortnite removed from the iOS App Store. Epic is also part of a just-announced group of publishers called the Coalition for App Fairness, which is pushing for app store changes or regulation.
TechCrunch an American online publisher focusing on the tech industry. The company specifically reports on the business related to tech, technology news, analysis of emerging trends in tech, and profiling of new tech businesses and products.