Apple Forces Facebook to Remove Message Telling Users that Apple Takes 30% Cut of Sales

Facebook had earlier revealed how Apple was hurting small businesses by charging them 30 percent transaction fees for paid live streaming on the social media platform. The feature was introduced by Facebook amidst the pandemic to help small businesses that had to shut their retail stores to stop the spread of the virus. The company also noted that it was not taking any cut from the transaction to help small businesses.

Facebook had requested Apple to waive off the transaction fees or to let them use Facebook Pay as an alternative payment method but Apple had declined. In the app screenshots released then, Facebook highlighted on the payment page of the live stream transaction about Apple taking a 30 percent cut, though the company was unsure if Apple would approve its app with the said message.

The social media giant has now confirmed that Apple has rejected its app update attempts with the said message in place. The Cupertino company states an App Store Guidelines that prevents developers from showing “irrelevant” information to users.

Facebook Online Events - Payment flow
Mock up Screenshots released by Facebook earlier this month

“Now more than ever, we should have the option to help people understand where money they intend for small businesses actually goes. Unfortunately Apple rejected our transparency notice around their 30% tax but we are still working to make that information available inside the app experience,” Facebook said in a statement.

Facebook’s mockups for the Android version of the app also showed a small note about the company not taking a fee for such purchases, but that message is also missing now.

Apple is being heavily criticized by major app developers for its App Store policies. Epic Games has already taken on Apple head-on, with others like Facebook, Microsoft, and Spotify supporting the former in this battle. Apple had reduced the App Store commission to 15 percent to get Amazon’s Prime Video app on the App Store and there’s no reason the company cannot do the same for small businesses during the pandemic.

[Via Reuters]

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