Apple is temporarily allowing Facebook to process fees for its online paid events through Facebook Pay, its digital payment system. That basically means the 30% App Store fee will be waived for the social networking giant's new feature, which was announced last month.
The temporary easing of Apple's tax will run through December 31 and businesses that will create paid events on the platform will receive all of the earnings after tax deduction. Facebook spokesperson Joe Osborne has this to say:
“This is a difficult time for small businesses and creators, which is why we are not collecting any fees from paid online events while communities remain closed for the pandemic. Apple has agreed to provide a brief, three-month respite after which struggling businesses will have to, yet again, pay Apple the full 30% App Store tax.”
However, this will not apply to game creators. Regarding this exception, Facebook Gaming Vice President Vivek Sharma said, “We unfortunately had to make this concession to get the temporary reprieve for other businesses.”
Facebook announced in August its paid online events for small businesses. In an effort to help them monetize their live streams, Facebook said it won't take a cut from the money page owners would collect from viewers and that it asked Apple to do the same. However, the Cupertino-based company refused to waive its App Store fees.
Apple's latest concession is a welcome development for small businesses. The reversal comes after Facebook's series of moves calling out Apple to reverse its initial decision.