Apple reverses course, temporarily removes fees for Facebook events
What you need to know
- Apple will not charge small businesses its 30% fee for virtual events on the Facebook app.
- It will hold off on collecting its fee until December 31.
- Facebook says that is not enough, as it plans to waive fees until at least August of 2021.
Reported by CNBC, Apple has temporarily reversed its decision to take a 30% cut of transactions from the Facebook app for virtual events that have been booked by small businesses. Last month, Facebook had publicly complained that the company collected 30% of these revenues, saying that it was hurting the small businesses that relied on these virtual events during the pandemic.
Apple has now told CNBC that it will temporarily remove its 30% fee for virtual events booked through the Facebook app to allow time for businesses to adapt to becoming more digital. It also said that it only charges these fees for digital events and that Facebook has until the end of the year to enable in-app payments for real-world events, an offering that Apple would not collect a fee for.
Facebook shot back at Apple after the announcement, saying that waiving the fees until the end of the year was not long enough, as it already plans to waive its own fees until August of next year. It also pointed out that Apple is still collecting fees for gaming companies, but Apple says that, since gaming companies have always been digital, it does not make sense to waive the fee.
Facebook is one of many companies that are complaining about Apple's App Store fees. The most public is Epic Games, which is currently locked in a legal battle with Apple to offer Fortnite through the App Store without having to pay Apple's fees. Most recently, the company joined the 'Coalition for App Fairness' for its latest dig at Apple.
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Joe Wituschek is a Contributor at iMore. With over ten years in the technology industry, one of them being at Apple, Joe now covers the company for the website. In addition to covering breaking news, Joe also writes editorials and reviews for a range of products. He fell in love with Apple products when he got an iPod nano for Christmas almost twenty years ago. Despite being considered a "heavy" user, he has always preferred the consumer-focused products like the MacBook Air, iPad mini, and iPhone 13 mini. He will fight to the death to keep a mini iPhone in the lineup. In his free time, Joe enjoys video games, movies, photography, running, and basically everything outdoors.