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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.

On August 4, Facebook announced its plan to support small businesses that are being hurt by the COVID-19 pandemic. The social network giant wanted small business owners to host paid events like networking sessions, cooking classes, workout sessions, and happy hours on their Facebook page. Demand for these kinds of online events has soared since the coronavirus hit.

Facebook claimed it is giving page owners “the ability for businesses, creators, educators, and media publishers to earn money from online events on Facebook. Now Page owners can create an online event, set a price, promote the event, collect a payment, and host the event, all in one place.”

This plan was “designed to make it easier for millions of people and small businesses to make money on Facebook.” 

On August 14, Facebook amended its statement saying, “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. While Facebook is waiving fees for paid online events we will make other fees clear in the product.” 

On Friday, September 25 Facebook said businesses will be able to keep all of their paid online event earnings from now until December 31. Facebook Pay will process all paid online events purchases, meaning that businesses and creators will not pay the 30% Apple App Store tax for the remaining three months of 2020.