Apple rigid over App Store commission, says Facebook
Facebook on Friday joined the attack on Apple’s procedure of its App Store following the iPhone maker refused to forgo its commission on live online events hosted on the social networking that allow persons to make money through the pandemic.
The comments from Facebook come in the wake of a blockbuster lawsuit from gaming sensation Fortnite maker Epic Games on Thursday which accused Apple of abusing its monopoly position in its online marketplace.
Facebook said it could not collect any service fees from paid online events that educators, entertainers, or others can host due to a brand new addition to the platform, but that Apple declined to cool off from its standard share of transactions which are handled through the App Store.
“We asked Apple to lessen its thirty percent App Store tax or allow us to provide Facebook Pay so we're able to absorb all charges for businesses struggling during COVID-19,” Facebook vice president Fidji Simo said in a weblog post.
“Unfortunately, they dismissed both our requests and (small- and medium-size businesses) will only be paid 70 percent of their hard-earned revenue.”
The new paid events feature was launched by Facebook in response to the global coronavirus pandemic which includes forced the cancellation of many in-person gatherings.
The feature lets Facebook Live streaming service be used to create, promote and host paid events from concerts and theatrical performances to yoga classes and cooking lessons.
It really is being tested for use with “more personal gatherings” at Messenger group video chat feature Rooms, according to Simo.
“With social distancing mandates still in place, many businesses and creators are bringing their events and services online to hook up with existing customers and reach new ones,” Simo said.
Facebook’s criticism comes amid heightened scrutiny of Apple’s policies because of its online marketplace.
Apple has defended the commission to cover the expenses of managing the App Store and protecting users security, but critics say the commission can be an abuse of its position.
The most recent version of Fortnite contains a payment system that lets player transactions bypass Apple’s App Store and Google’s Play, avoiding the businesses from collecting their typical thirty percent cut.
Fortnite sought to direct users around the App Store and found itself booted off the platform, and Epic immediately filed an antitrust complaint.
The game-maker called on a federal judge to order Apple to avoid its “anti-competitive conduct” and invalidate the tech giant’s rules requiring application developers to pay the business thirty percent of transactions.
The suit said Epic isn't seeking favourable treatment, but is asking the court to order Apple to improve its commission structure for all developers.
Apple said Fortnite was pulled after “Epic Games took the unfortunate step of violating the App Store guidelines that are applied equally to every developer and made to keep carefully the store safe for our users.”
