Facebook Joins Apple Attack on App Store Commission

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Facebook has joined companies attacking Apple over issues related to its App Store.

San Francisco, United States:

Facebook joined the attack on Apple’s operation of its App Store on Friday after the iPhone maker refused to give up its commission on live online events hosted on the social network that allow people to earn money. money during the pandemic.

Facebook’s comments follow a successful lawsuit by video game maker Fortnite, Epic Games, on Thursday that accused Apple of abusing its monopoly position in its online market.

Facebook said it would not charge any fees on paid online events that educators, artists, or others can host due to a new addition to the platform, but that Apple has refused to do so. withdraw from its standard share of transactions managed through the App Store. .

“We have asked Apple to reduce its 30% tax on the App Store or allow us to offer Facebook Pay so that we can absorb all the costs for struggling businesses during COVID-19,” said the Facebook vice president, Fiji Simo, in a blog post.

“Sadly, they rejected our demands and (small and medium-sized businesses) will only be paid 70% of their hard-earned income.”

The new paid events feature was launched by Facebook in response to the global coronavirus pandemic which has forced many in-person gatherings to be canceled.

This feature allows the use of Facebook’s live streaming service to create, promote and host paid events, concerts and theatrical performances at yoga classes and cooking classes.

It’s being tested for use with “more personal gatherings” in Messenger group video chat rooms, according to Simo.

“With social distancing mandates still in place, many companies and creators are bringing their events and services online to connect with existing customers and reach new ones,” Simo said.

Facebook’s criticisms are part of an in-depth review of Apple’s policies regarding its online marketplace.

Apple has defended the commission to cover the costs of running the App Store and protecting user safety, but critics say the commission is an abuse of position.

The latest version of Fortnite contains a payment system that allows player transactions to bypass Apple’s App Store and Google Play, preventing businesses from collecting their typical 30% discount.

Fortnite sought to direct users to the App Store and ended up off the platform, and Epic immediately filed an antitrust complaint.

The game’s creator called on a federal judge to order Apple to end its “anti-competitive behavior” and strike down the tech giant’s rules requiring app developers to pay the company 30 percent of transactions.

The lawsuit said Epic is not seeking favorable treatment, but is asking the court to order Apple to change its commission structure for all developers.

Apple said Fortnite was pulled after “Epic Games made the unfortunate decision to violate App Store guidelines which are applied equally to every developer and designed to keep the store secure for our users.”

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