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Apple backs down on taking 30% cut of paid online events on Facebook

Posted on September 25, 2020 by Xordac Prime
Apple backs down on taking 30% cut of paid online events on Facebook

Enlarge (credit: Facebook)

Facebook has temporarily shamed Apple out of taking a 30 percent cut of paid online events organized by small businesses and hosted on Facebook—things like cooking classes, workout sessions, and happy hours. Demand for these kinds of online events has soared during the COVID-19 pandemic.

Apple says that it has a longstanding policy that digital products must be purchased using Apple’s in-app payments system—and hence pay Apple’s 30 percent tax. In contrast, companies selling physical goods and services are not only allowed but required to use other payment methods (options here include Apple Pay, which doesn’t take such a big cut).

For example, an in-person cooking class is not a digital product, so a business selling cooking class tickets via an iPhone app wouldn’t have to give Apple a 30 percent cut. But if the same business offers a virtual cooking class, Apple considers that to be a digital product and demands a 30 percent cut—at least if the customer pays for the class using an iOS device.

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Source: Ars Technica – Apple backs down on taking 30% cut of paid online events on Facebook

This entry was posted in Ars Technica, Unfiltered RSS and tagged Ars Technica by Xordac Prime. Bookmark the permalink.
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