The Fight between Epic Games and Apple has caused other companies to jump on the polemic train and take sides with one side or the other. Following the steps of Spotify, is now Facebook who charges against Apple for charging the 30% tax on purchases from the App Store.
Facebook ad an initiative for businesses and creators to carry out payment events online in order to get new customers or connect with existing ones. The idea of Facebook is that small businesses can create events to fundraise and cope with the COVID-19 pandemic.
While Facebook stated that it does not plan to charge a tax for the use of this feature on its platform, the company attacked Apple because it will keep 30%, as set by the use policies of the App Store.
“We asked Apple to reduce the tax but they rejected our requests”
In an entry in his blog, Fidji Simo, responsible for the Facebook app, stated that the company asked Apple to lower the tax but they refused:
“We asked Apple to reduce their App Store tax of 30% or to allow us to offer Facebook Pay so that we could absorb all the costs of businesses struggling during COVID-19. Unfortunately, they rejected our applications and SMEs will only receive 70% of their hard-earned income. ”
Facebook, who now seeks to position itself as the champion of those suffering from the pandemic, does not launch this initiative for charity. The company knows that video consumption has exploded in recent months and that social distancing has caused many creators and artists to turn to platforms such as Instagram or Facebook Live to carry out concerts from a distance.
Facebook makes it clear that Apple will keep 30% of each transaction
The paid events will be available in Spain, Mexico, Brazil, USA and 15 other countries. Those interested who seek to contribute to their favorite artist or business will be specified that 30% of the payment is kept by Apple and that Facebook does not charge a commission for each purchase.
“Facebook will not charge any event fees paid online for at least the next year. For transactions on the web and on Android in the countries where we have implemented Facebook Pay, small businesses will keep 100% of the revenue they generate of paid online events. ”
While the company assures that only 19% of the businesses are receiving some financial aid due to the pandemic, it also takes the opportunity to mention that live events on your Pages doubled in March 2020, with respect to the same month of the previous year.
In the long run, Facebook you will continue to benefit from the money you get from selling our information to advertisers while selling us the idea that supports medium-sized companies. The payment event option will charge a commission for each payment starting in 2021.
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