Companies like Apple hurting creator economy, says Facebook
What you need to know
- Facebook thinks Apple is hurting the creator economy by charging high commission rates.
- That's according to the head of its app, Fidji Simo.
- She says Facebook believes not taking a cut of paid subscriptions and online events is the right thing to do.
The head of Facebook's app Fidji Simo has told attendees at Fortune's MPW Next Gen virtual conference that companies like Apple which take a "very large revenue share" are hurting the creator economy.
Facebook says that it will continue to let creators offer paid subscriptions and online events without any commission through 2023, it also says that when it does begin charging for the service its rate "will be much lower than the 30% that Apple takes", because it believes "that's the right thing to do for that creative economy to really rise."
Facebook and Apple have clashed publicly on numerous occasions over the last year, notably over Apple's new App Tracking Transparency feature in iOS 14, which Facebook says could decimate small businesses that rely on advertising. The 30% rate of commission on Apple's App Store and iOS, charged against digital goods and services, has also been a bone of contention. Last year, Facebook was forced to remove a passive-aggressive message within its app telling users that when they paid for goods online 30% of the money was going directly into Apple's pocket.
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Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.
Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9