Facebook attempted to tell its user about Apple’s 30% App store tax which was instantly blocked by Apple. A new feature was announced by Facebook earlier this month providing paid opportunity to host virtual meetings and events. Facebook’s request to let go of the 30% revenue on app purchase for this new feature was rejected by apple.
In an attempt to explain to the users the new-feature, Facebook informed its users that they would get only 70% of their earning as Apple also charges 30% on all the purchases. Later, Facebook stated that Apple blocked its attempt. Facebook now intends to help people in understanding where the big chunk of their money goes. However, Facebook is still trying to incorporate the information removed by Apple.
Mark Zuckerberg did not refrain from commenting and reportedly said: “Apple has a “stranglehold as a gatekeeper on what goes on phones.” He further added that this blockage will lead to blocking the way for innovation and healthy competition. However, no further comments have been made by either party so far.
Apple is facing a similar issue and is involved in a lawsuit with epic games. The lawsuit is a result of the introduction of a direct payment plan by the Epic games which claimed apple’s 30% share in-app purchase process. Apple removed Fortnite from its app store over the direct payment plan issue upon which Epic games have sued Apple.
The new feature was introduced by Facebook to facilitate people in challenging times. To avoid in-person events and meetings, people can now have virtual events by using this tool. Facebook has made clear that no charges would be applied from the next year and people would get their 100% revenue. Moreover, people living in countries having Facebook pay will get their 100% revenue generated through this new feature. Furthermore, Facebook asked Apple to allow it to charge through Facebook pay or to reduce its 30% tax so that it can help people in these tough times. However, both requests were declined by Apple and now people will get 70% of their earnings.