Apple has finally taken back its decision of charging around 30 percent of fees for the transactions made through the Facebook app for conducting the virtual events booked by small businesses. Facebook had admonished the move made by Apple in which the company charged 30 percent of the revenue of virtual events citing significant loss to the small businesses already struggling to make ends meet in times of pandemic.
Apple Pulls Back Decision To Charge Fees For Conducting Virtual Events Through Facebook
Apple reversed its decision last week saying that the fee collection is stalled till December 31 2020. Facebook said that
“We asked Apple to reduce its 30% App Store tax or allow us to offer Facebook Pay so we could absorb all costs for businesses struggling during COVID-19. Unfortunately, they dismissed both our requests and SMBs will only be paid 70% of their hard-earned revenue. While Facebook is waiving fees for paid online events we will make other fees clear in the product.”
Relaxation Until December 31, 2020
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The tech giant would not charge any fees for the virtual events booked from Facebook until the small businesses are fully accommodated to the digital platforms said Apple. It also cited that the costs are only charged for the events conducted virtually, and it allows Facebook to bring in the in-app purchases for all the real-world events. Apple would not be charging any fees for real-world events.
Apple also boasted of providing an excellent business opportunity to developers across the world by giving exposure to half-billion visitors every week in 175 countries. It pressed on its standard, clear and consistent guidelines.
Facebook Still Complacent of Apple’s Move
When Apple announced waiving the fees till December, Facebook complained that the duration is not very long and the social media giant has waived fees until August 2021 since the small businesses face turbulent times right now. Facebook also took shots at Apple for charging fees from the gaming companies. Recently Apple and Epic games are having a legal battle over the Fortnite game for which Apple is charging substantial fees.