Apple grants temporary waiver of 30% charge for funds raised through Facebook's new events function

by WarriorForum.com Administrator
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A new article on Social Media Today reports that Apple has granted a waiver for funds raised through Facebook's new Paid Events function, which got launched just last week. Some see this move as being a way for Apple to allow businesses another avenue for raising cash during the COVID-19 crisis.



Back when the Paid Events function got launched, Facebook made clear its opposition to the way Apple intended to generate revenue because that meant the platform needed to pay 30% of any funds raised through the function on an iOS device to Apple:

"For transactions on the web, and on Android in countries where we have rolled out Facebook Pay, small businesses will keep 100% of the revenue they generate from paid online events. 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."

This isn't the first time Facebook and Apple have clashed over the 30% in-app charge. Facebook has made its opposition clear a few times before. However, this is the very first time that Apple has decided to back down. That's possibly because the organization has had a change of heart or a realization regarding the fact Paid Events represents a chance for businesses to make some much-needed revenue during a global pandemic that has affected business on nearly every level in every corner of the world.

"Today, Facebook is announcing a reversal on Apple's part: Online event fees will be processed through Facebook Pay, without Apple collecting its 30% cut, meaning businesses will receive all of the earnings from their online events, minus taxes."
Yet, is this really Apple being benevolent? The more eagle-eyed among you will no doubt remember recent criticism of Apple for the 30% in-app charge coming from the likes of Epic Games - publisher of Fortnite, and the fact that dispute is heading to court.
#30% #apple #charge #events #facebook #function #funds #grants #raised #temporary #waiver
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  • Profile picture of the author Matthew Stanley
    Yeah - suspect this precedent will not carry over to their normal "landlord 30% tax" charged (and strongly opposed by) to Epic, Tinder, et al...
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  • Profile picture of the author Jamell
    Smart move on Apples behalf for making a smart compromise which will help business during these difficult times.
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