September 24, 2022
Facebook Reveals Apple In-App Fees Hurt Businesses During Pandemic

This is not the first time Apple is being criticized for its App Store fees. Epic Games put up a display of resistance by bypassing App Store commissions on Fortnite. Apple acted swiftly and removed Fortnite from the App Store. Other companies have now joined Epic Games and are publicly criticizing Apple. Facebook has joined the bandwagon and says iPhone’s fee structure has hurt small businesses during the pandemic.

Facebook introduced a new feature that allowed business owners to charge for live streaming. The paid event was rolled out in 20 countries and included yoga class, cooking class, or an informative seminar. Apple didn’t agree to waive off its 30% fees for all transaction that takes place within the app even during the pandemic. Moreover, they didn’t allow Facebook to use their payment system and process the payment.

Things were a little bit different on Android. According to Facebook, even Google didn’t waive off a 30% fee. However, it allowed Facebook to use its payment system, thus effectively bypassing Play Store fees. Facebook added that it was not taking any part of the revenue generated during the live streaming.

DON’T MISS: Fortnite Adds Direct Payment Option Bypassing iOS, Android App Store Fees

Facebook says, “We went through our usual channels to suggest strongly to them to waive their fee or to let us use Facebook Pay — one of the two –, and they declined.” Facebook agreed that it makes use of Apple’s App Store to distribute its apps. However, it feels Apple’s fee structure is unfair.

READ MORE:  Facebook and Apple Wanted to ‘Build Businesses Together’ Prior to Privacy Fall Out

[via Bloomberg]

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