Apple is not backing down. The tech giant rejected Facebook’s update feature. The feature informed users about its 30% cut from in-app purchases. The FB update was in the new feature that allows online small-businesses to host events.
Hindrance in Respite to Small Businesses?
The whole world has gone into a turmoil following the COVID-10 pandemic. The small business owners have been struggling. To help them out, Facebook came up with the online event option.
The social media giant wanted the 100% proceedings to go to the business owners. It seems Google accepted the proposal. Owners get all the income from the purchases made from Android and web. But, Apple chose to take the 30% cut from the transaction.
Earlier, Facebook had requested Apple to discount the 30% cut but got rejected. Thus, in the latest update, the social media giant tried to spotlight Apple’s part in every purchase.
A Facebook spokesperson informed CNBC about their plans,
“Now more than ever, we should have the option to help people understand where money they intend for small businesses actually goes.
He added that they are still working out the issue with Apple,
“Unfortunately Apple rejected our transparency notice around their 30% tax but we are still working to make that information available inside the app experience.”
30% Cut Controversy
30% cut issue has been hounding Apple for quite a while. Earlier companies like Spotify and Match Group voiced their concerns of the commission. The latest to join the bandwagon is Epic games. Epic games-owner of Fortnite- challenged Apple’s app policy. The company allowed users to buy Fortnite character’s outfit and weapons at a discount from it. The move prevented Apple from getting it’s 30% cut.
In response to Epic’s move, Apple removed Fortnite from its app store. The company’s spokesman said,
“Today, Epic Games took the unfortunate step of violating the App Store guidelines that are applied equally to every developer and designed to keep the store safe for our users,” As a result their Fortnite app has been removed from the store.”
Epic Games’ Response
The issue was far from over. In retaliation, the gaming company sued the tech giant. Epic said,
“Rather than tolerate this healthy competition and compete on the merits of its offering, Apple responded by removing Fortnite from sale on the App Store, which means that new users cannot download the app, and users who have already downloaded prior versions of the app from the App Store cannot update it to the latest version.
After Epic games sued Apple, Google also removed Fortnite from its Play store. The gaming company later sued Google too.
The removal of the game from the Apple store is stringent than the Play store. Google allows the third-party installation of the app, but Apple doesn’t. Apple has always maintained that a 30% cut is necessary to keep a level playing field for developers.
But, Epic games is not backing down. Leveraging its billions of hours of playtime a month, the company has created a parody ad. The ad is played in Fortnite. Titled, “Nineteen Eighty-Fortnite” some of the clip’s lines reads,
“Epic Games has defied the App Store Monopoly. In retaliation, Apple is blocking Fortnite from a billion devices. Join the fight to stop 2020 from becoming’ 1984′.”
The company has also put not such a subtle hashtag “#FreeFortnite”.
According to Epic games, they do not want monetary compensation. They aim to change Apple’s policies.
We will have to wait and watch how the legal battle pans out.