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Business September 28, 2020 5 mins read

Apple approves temporary moratorium on fees for Facebook plan for online events

Business ı By Jackie Allen

1,312 0 Comments

All businesses are eligible except gaming creators. Facebook will not collect any fees from paid online events while businesses remain closed for the pandemic, until at least August 2021.

Apple issues a statement or a rebuttal

A spokesperson for Apple told CNBC that it reversed its decision on the Facebook event fees “due to the pressures businesses are facing from the pandemic and that Apple wants to give those businesses more time to adapt to digital business models.

Additionally, the spokesperson said the App Store rule that requires a 30% fee does not apply to ticket real-world events, only digital events and Facebook has until the end of the year to implement in-app payments for real-world events. Airbnb and ClassPass also have until the end of the year to add the in-app payments for events."

“The App Store provides a great business opportunity for all developers, who use it to reach half a billion visitors each week across 175 countries. To ensure every developer can create and grow a successful business, Apple maintains a clear, consistent set of guidelines that apply equally to everyone," according to the Cupertino-based tech giant in a statement.

Apple vs. Facebook 

On the other hand, Facebook spokesperson Joe Osborne said, “This is a difficult time for small businesses and creators, which is why we are not collecting any fees from paid online events while communities remain closed for the pandemic.”

“Apple has agreed to provide a brief, three-month respite after which struggling businesses will have to, yet again, pay Apple the full 30% App Store tax.”

Facebook executives have become increasingly critical over Apple’s App Store rules, saying the company has a monopoly over how apps work across over an estimated one billion devices in use.

Facebook CEO Mark Zuckerberg reportedly said in an August all-hands meeting that Apple has “this unique stranglehold as a gatekeeper on what gets on phones” and that the company charges “monopoly rents” to app makers.

Apple vs. Microsoft and Google

Apple has blocked Google and Microsoft (NASDAQ: MSFT) from launching new streaming video game services on the App Store. It is arguing that each game should be submitted individually for a fee. Microsoft and Google want their consumers to be allowed to stream a library of console games through one app to a device.

“This remains a bad experience for customers. Gamers want to jump directly into a game from their curated catalog within one app just like they do with movies or songs, and not be forced to download over 100 apps to play individual games from the cloud,” a Microsoft spokesperson told CNBC earlier this month.

Apple vs. Developers 

Most companies that build iPhone apps are complaining about the App Store fee policies. There has been recent litigation with Epic Games.

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Jackie Allen
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Jackie Allen

Jackie is a freelance journalist and technology geek. She worked as a telecom project director for AT&T and BellSouth. Before joining the USA Herald she has written books, articles, blogs and whitepapers. Her clients include Samsung and other technology companies.

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