Apple backs down on taking 30% cut of paid online events on Facebook
Facebook has temporarily shamed Apple out of taking a 30 percent cut of paid online events organized by small businesses and hosted on Facebookthings likecooking classes, workout sessions, and happy hours.
Apple says that it has a longstanding policy that digital products must be purchased using Apple's in-app payments systemand hence pay Apple's 30 percent tax.
In contrast, companies selling physical goods and services are not only allowed but required to use other payment methods .
But if the same business offers a virtual cooking class, Apple considers that to be a digital product and demands a 30 percent cutat least if the customer pays for the class using an iOS device.
The issue came to a head in late August when Facebook revealed that Apple wouldn't even allow Facebook to inform users about Apple's 30 percent take.
Apple says it has given Facebook until the end of the year to switch from Facebook Pay to in-app purchasesand hence start paying Apple 30 percentfor online events.
However, this grace period isn't available for Gaming Creators, which Apple argues are not brick-and-mortar businesses that have been affected by COVID-19.
We use cookies and analyse traffic to this site. By continuing to use this site, closing this banner, or clicking "I Agree", you agree to the use of cookies. Read our privacy poplicy for more information.