Apple (NASDAQ: AAPL) agreed to temporarily suspend taking a 30% cut of paid online events organized by small businesses and hosted on Facebook (NASDAQ: FB) app.
According to Facebook, Apple’s decision will only last until December 31. Gaming companies are excluded from the temporary moratorium since they are not hurt by the COVID-19 pandemic.
Initially, Apple said its longstanding policy was non-negotiable. The Cupertino-based tech giant stressed that digital products must be purchased using Apple’s in-app payments system. It means everyone must pay Apple’s 30% fee. However, after weeks of a stand-off with the social network giant, Apple temporarily reversed its decision.
Apple has been blocking an update to the Facebook app because it displays a warning to users that a cut of their transactions for paid events would go to Apple.
Facebook plans to help small business with paid online events
The dispute began when Facebook asked Apple to waive fees on paid online events to support businesses and creators.