Apple Blocked Facebook Update Highlights Apple’s Purchase Cost

Apple blocked Facebook’s attempt to tell users about the 30% fee Apple would take on all in-app purchases made through a new online event feature, Facebook said Reuters. Apple reportedly told Facebook that the update violated an App Store rule that prevents developers from displaying “irrelevant” information to users.

Facebook was planning to launch a new tool in its app that allows online influencers and other businesses to host paid online events as a way to get revenue lost in the global health crisis. With the feature, Facebook users can purchase tickets directly for the events through the app.

Apple’s long-standing ‌App Store‌ rules state that the iPhone maker takes a 30% discount on all in-app purchases. When Facebook asked Apple to wait for the fee so it could pass on all event revenue to business owners, Apple would refuse.

The feature is now available in the Facebook app, just without the message notifying users about Apple’s 30% fee. The image above was released by Facebook earlier this month to show what the message looked like.

Facebook would presumably show a message on Android that “Facebook does not charge a fee for this purchase”, however Reuters said the message does not appear in the version of Facebook currently available in the Google Play Store.

“Now more than ever, we need to have the option to help people understand where the money they are aiming for for small businesses actually goes. Unfortunately, Apple rejected our transparency message about their 30% tax, but we work still to make this information available in the app experience, ”Facebook said in a statement.

Apple did not respond to a request for comment.

Nothing about Apple’s actions is new here – the company has been consistent in preventing other apps like Netflix and Spotify from discussing the ‌App Store‌ policy, such as explaining that users can pay for their services via the web without Apple taking a cut .

What’s different in this case is that Facebook, by clearly looking at the message prior to the submission of Apple’s ‌App Store‌ process, is fueling debate over the way Apple policies on its iOS platform, at a time when Apple is already antitrust lawsuits and government probes over alleged competitive actions.

One particular focal critic has been the creator of Fortnite Epic Games, who has repeatedly referred to the ‘App Store’ as a monopoly. Earlier this month, Apple removed Fortnite from the App Store after Epic Games introduced an in-app payment option for its in-game currency, in violation of the App Store rules. In a seemingly orchestrated move, Epic Games immediately filed a lawsuit against Apple, accusing the company of anti-competitive behavior.

Spotify and Microsoft have been on the side of Epic since the issue, and Facebook’s latest action suggests they have picked up another ally in the growing controversy over Apple’s App Store‌ policy.

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