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Apple ‘hurting’ small businesses, says Facebook

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Facebook clearly is painting Apple as a ‘villain’ — a company who isn’t willing to reduce App Store fees to he…Read More

Facebook and Apple are not really the best of friends and have often accused each other of being wrong on many issues. Facebook, however, has now openly accused Apple of being an ‘enemy’ of small businesses. The social media giant launched a new events feature where businesses can create pain online events. Fidji Simo, vice president, head of Facebook App, in a blog said that the company requested Apple to reduce App Store ‘tax’ but they refused.
“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,” said Simo in the blog post.
Facebook has clarified that it will not make any money out of these events “at least till next” year. Simo further said that, “For transactions on the web, and on Android in countries where we have rolled out Facebook Pay, small businesses will keep 100% of the revenue they generate from paid online events.” In other words, Google too has decided to not take any fee from these events on Facebook.
Facebook clearly is painting Apple as a ‘villain’ — a company who isn’t willing to reduce App Store fees to help small and medium businesses. In fact, in an image shared of the app by Facebook clearly mentions that “Apple takes 30% of this purchase” on the iOS version. On the Android version of the app, users will see the message “Facebook doesn’t take a fee from this purchase.”
Apple has been under pressure from several big name app developers to reduce the App Store fees. Epic Games, developer of Fortnite, has sued Apple for banning the app on similar grounds as well. It will be interesting to see if and how Apple does react to Facebook’s cloaked criticism.

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