Facebook CEO Mark Zuckerberg speaks at the F8 Facebook Developers Conference on April 30, 2019 in San Jose, California.
Justin Sullivan | Getty Images
Facebook took a shot at Apple on Friday, saying the company can only pay small businesses a share of the sales of a new feature for paid online events as a result of the iOS App Store policy.
“We are asking Apple to reduce its 30% App Store tax or allow us to offer Facebook Pay so that we can absorb all costs for companies that wrestle during COVID-19,” said Fiji Simo, head of the Facebook app in a blog post. “Unfortunately, they have rejected both our applications and SMEs will only be paid 70% of their hard earned income.”
An Apple spokesman did not immediately respond to a request for comment.
Unlike Apple, Google will not take any sales cut through its Android service. As a result, Facebook said it would be clear to users in the iOS version of its app that Apple is taking a cut from its sales.
A screenshot of the iOS version of the feature says “Apple takes 30% of this purchase.” Simo said Facebook is not sure if this label will be successfully obtained through the Apple review process, but she said it is important for users to know where their money is going.
“If people pay $ 20 for a paid online event and they assume that the $ 20 all goes to the local business they are trying to support – if 30% goes to a nearly $ 2 trillion business, that’s relevant information for people to have. , “Simo said in a press release. “We found this to be an important thing to call out.”
The shot of Facebook is the latest blow in a long-running auction between the social media company and Apple. Facebook warned investors last month that their revenue could be affected by an upcoming feature in Apple’s iOS 14 that could make it harder for the social media company to target ads to its users.
Apple’s App Store is the only way to install software on iPhones, and in recent weeks, top app makers have begun to rebel against its rules and the 30% cut it takes on payments.
Facebook and Microsoft complained earlier this month about Apple’s App Store policy.
“Apple stands alone as the sole general purpose platform to deny consumers cloud game services and game subscriptions such as the Xbox Game Pass,” Microsoft said in announcing the launch of its upcoming streaming service for games in September.
“Unfortunately, we had to completely remove gameplay functionality to get Apple’s approval on the standalone Facebook Gaming app – which means iOS users will have an inferior experience for those using Android,” said Facebook management officer Sheryl Sandberg .
On Thursday, Epic Games decided to test Apple’s rules and introduced a way for gamers to pay Epic directly for features. Apple removed Fortnite from the App Store and Epic Games filed a lawsuit against Apple shortly thereafter. Google also removed Fortnite for breaking its Play Store rules, but Android allows users to install third-party app stores, meaning people can still install and play Fortnite.
Match Group, makers of Tinder and Hinge, Spotify have also called for a closer look at App Store business practices.
–CNBC’s Kif Leswing contributed to this report.
This news is evolving. Please check back for updates.
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