Daily Management Review

Facebook Clobbers Apple Over The iPhone Maker’s Refusal Of Commission Waiver


Facebook Clobbers Apple Over The iPhone Maker’s Refusal Of Commission Waiver
With developers challenging the commission policy of Apple for listing of apps on iOS devices, social media giant Facebook Inc also took a dig at the iPhone maker saying that its requests for waiving off a 30 per cent fee for listing its app was declined by its US tech peer.
This latest barrage by Facebook is part of a long time running of a cold war between the two of the largest and most powerful tech companies of the world. The companies have previously disagreed on the manner in which teach approached user privacy even as both the firms are being investigated by regulators over alleged anti-competitive business policies.
The waiver was requested by Facebook to help small businesses avoid paying Apple's commission for a new paid online events product that is to be launched on the core platform of the largest social media company of the world, Facebook said.
No comments on the issue were available from Apple in the media.
The widely popular video game "Fortnite" was removed from its app store by Apple on Thursday over allegations that the video game makers had violated in-app payment guidelines. That move by Apple also triggered an online backlash and prompted the video game developer Epic Games suing Apple’s rules in a federal antitrust lawsuit.  
A commission of between 15 per cent and 30 per cent is taken by Apple for most app subscriptions and payments made inside apps. The company however offers some exceptions to those companies that already have a credit card on file for iPhone customers and ig such companies also offer an in-app payment format that benefits Apple.
The policy of commission of apple has been criticized by developers for long in addition to prohibitions imposed by Apple on encouraging customers to go for outside sign-ups. Many developers view these policies of Apple to be opaque and unpredictable process for vetting apps and developers.
Facebook planned to tell users that Apple would take 30 per cent of the purchase, showed a mock-up of the new events product on iPhone, provided by the company.
A commission of 30 per cent for payments within apps on its Android devices is also charged by Google. It was however not clear whether the search engine giant would make an assessment of this charge in the case of Facebook. In its Android mock-up, Facebook noted only that it would not take a fee, without disclosing its arrangement with Google.
Comments from both Google and Facebook on the fee arrangement were not available.
Whether Facebook had attempted to make use of Apple's "multiplatform" exceptions was not made clear by Facebook.
The new Facebook tool was announced in a media conference call featuring small business owners by Fidji Simo, who heads the core Facebook app. The effort of the company was praised by small business owners, saying that the tool was a good way to reach customers and generate revenues online in the environment of the novel 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."