And the piling on continues as Facebook is criticizing Apple over its 30% cut of in-app purchases in connection to a new events streaming service the social network has launched. Facebook is suggesting Apple’s 30% cut of the action is hurting small businesses during the COVID-19 pandemic.
Facebook launched its criticism toward Apple today as it launched a new service that hosts paid livestream events such as seminars and fitness classes.
Bloomberg reports Facebook says that it asked Apple to skip wetting its beak for the next year when it comes to the livestreams to help small businesses and creators, but says the Cupertino firm declined. Facebook says it is not taking a cut of income from the fees for the events it’s hosting “for at least the next year.” Google agreed to waive the fees for Android devices.
To support small businesses and creators, Facebook will not collect any fees from paid online events for at least the next year. For transactions on the web, and on Android in countries where we have rolled out Facebook Pay, small businesses will keep 100% of the revenue they generate from paid online events.
We asked Apple to reduce its 30% App Store tax or allow us to offer Facebook Pay so we could absorb all costs for businesses struggling during COVID-19. Unfortunately, they dismissed both our requests and SMBs will only be paid 70% of their hard-earned revenue. Because this is complicated, as long as Facebook is waiving its fees, we will make all fees clear in our products.
Facebook appears to be using Apple’s latest antitrust issues and its legal battle with Epic Games over Fortnite in-app purchases to put some pressure on the iPhone maker. Facebook certainly is aware that if Apple agreed to their request, it would open itself to a wave of similar requests from other companies and developers and possible legal action by those that may turn down.
The Facebook criticism comes on the heels of Facebook launching its new gaming service last week without any games on its iOS app due to Apple’s restrictions on allowing any game streaming apps on its platform. Facebook is also concerned over iOS 14’s more strict privacy features, which the social network says could impact its advertising revenue.