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Facebook accuses Apple of robbing small businesses of their hard-earned revenue

By Nadeem Sarwar August 15, 2020, 2:46 pm

Facebook has today announced that businesses and creators can now host paid online events to help them make money as they struggle with shutdowns during the pandemic era. Notably, Facebook says it will not charge any fees for these online events “for at least the next year,” which means small businesses can keep 100% of the revenue they generate from these paid online events, but only on Android and the web.

However, the company says Apple won’t let Facebook achieve that goal. “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,” the social media giant mentioned in a blog post.

And since Apple won’t agree to lose the 30% fee it charges, Facebook is going to let users know exactly how things are. For transactions made on the web and the Facebook app for Android via Facebook Pay, users will see the “Facebook doesn’t take a fee for this purchase” message, which means businesses keep 100% of the revenue they generate from paid online events. But for purchases made via the Facebook app for iOS, Apple will take its cut, so there will be a clear message below the purchase button that says “Apple takes 30% of that purchase.”


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