Facebook says Apple stopped it telling users about in-app purchase fees

Facebook says Apple stopped it telling users about 30% in-app purchase ‘tax’


Facebook owns 4 of the top 10 apps of the past decade
Facebook is also taking shots at Apple's App Store commissions.
Photo: Ste Smith/Cult of Mac

Facebook claims Apple stopped it from telling users about the 30% commission that Cupertino takes from sales in a new online events feature.

According to a Reuters report published Friday, Apple said its rules stop developers from showing “irrelevant” information to users.

“Now more than ever, we should have the option to help people understand where money they intend for small businesses actually goes,” Facebook said in a statement. “Unfortunately Apple rejected our transparency notice around their 30% tax but we are still working to make that information available inside the app experience.”

Facebook said earlier this month that it was planning a tool that would allow online influencers and other businesses to stage paid online events. This could help make up some of the revenue lost due to shutdowns during the COVID-19 pandemic.

Facebook said it asked Apple whether it would drop the 30% fee it charges for in-app purchases, which would allow the social network to pass along all revenue to business owners. However, Apple reportedly would not alter its policy. Facebook planned to include a note to users about Apple’s cut, but Apple would not allow it. The social network ran into a similar problem on the Google Play Store, which also charges a commission.

Facebook hits out at in-app purchase fees

This latest challenge to the App Store commission policy is reminiscent of another recent incident involving Airbnb and ClassPass. As those companies started offering virtual events, they faced Apple’s demand for a 30% commission.

Right now, lots of companies are piling on to add their voice to the anti-Apple chorus. Apple argues that it is entitled to take a cut of payments to those who use its App Store infrastructure. (Analysts like Above Avalon’s Neil Cybart have also suggested that the App Store may not be quite the money-printing machine some people think it is for Apple.)

However, with investigations of tech giants currently underway around the world, the volume of complaints against Apple could push regulators to act. This week, the Democrat leading the House antitrust investigation into tech giants including Apple (and Facebook for that matter!) said these companies “abuse … their market power to maintain their market dominance, to crush competitors, to exclude folks from their platform and to earn monopoly rents.”

Source: Reuters


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