“We asked Apple to reduce its tax on the App Store by 30% or allow us to offer Facebook Pay so that we can absorb all costs for businesses struggling during COVID-19,” Facebook wrote in a post on blog. “Unfortunately, they rejected both of our claims and SMB will only be paid 70% of their hard-earned income.”
The social network said it plans to warn its users on its app that Apple gets a 30 percent discount on their purchase, and that it has been handed the update for Apple approval and is awaiting a response. Apple did not immediately respond to a request for comment.
On the Facebook app and website, events will use Facebook Pay so business owners can get the full amount, according to the company.
“What we are pushing is for all the technology companies that can afford to do this to join us in supporting small businesses,” Facebook VP Fidji Simo told reporters on Friday.
The move makes Facebook the latest tech giant to rally Apple as it faces antitrust scrutiny over its App Store policies. Comes a day later Fortite manufacturer Epic sued iPhone maker after it opened Fortnite outside the App Store for its attempt to bypass Apple’s 30 percent commission. Since then, Spotify and Tinder-owner Match Group have issued statements in support of Epic’s fight against Apple’s “unfair” policies.
But this is far from the first time a dispute between Facebook and Apple has been played out publicly. Apple has repeatedly criticized Facebook for its privacy policies, and Apple has briefly staged Facebook’s internal applications after the company was caught violating its rules on enterprise applications.
Simo said the new feature of the event is intended to help businesses that have been hit hardest by closures due to COVID-19. The feature will use Facebook Live, and is also being tested with Messenger Rooms. It will be available in 20 countries, including the United States, the United Kingdom and Australia, on sites that meet its monetization rules.