Facebook and Apple Photograph:( Reuters )
Facebook claims it made the request so that the small businesses do not have to pay Apple's cut
The cold war between two of the biggest tech companies is only escalating with every passing day. Facebook Inc (FB.O) and Apple Inc (AAPL.O) have against locked horns — this time the topic is commission fee.
Facebook announced that Apple has now declined its request to waive a 30 per cent commission fee the iPhone maker charges apps listed on iOS devices. Facebook claims it made the request so that the small businesses do not have to pay Apple's cut for a new paid online 'events' product that Facebook is launching on its core platform.
Apple, much like Google, charges a commission fee between 15 to 30 per cent for app subscriptions and payments made inside apps, except for them companies that already have a credit card on file for iPhone customers. This practice by tech company has been criticised earlier too by various developers.
Recently, 'Fortnite' developer Epic Games also got into a legal and social war with Apple over similar issues.
The issue came to light after a mock up of the new feature of Facebook on iPhone showed that the company planned to tell users that Apple would take 30 per cent of the purchase.
While the same process is followed by Google, it is not clear if Google would walk the oath of Apple in this case, or let go of the fee for a greater cause.
Google and Facebook declined to reveal their arrangement, though.
Fidji Simo, head of the core Facebook app, announced the tool in a media conference call featuring small business owners who praised it as a way to reach customers and earn revenue online during the coronavirus pandemic.
She said Facebook considered it “important to be transparent, when people are supporting small businesses,” as users might not be aware that part of their payments could be “going to an almost $2 trillion company.”
Apple has not yet responded to the controversy.