Facebook hopes to promote “offline transactions” between creators and companies. With this, Facebook wants to help digital creators bypass Apple’s 30% in-app purchase fee.
Facebook wants to help digital creators bypass Apple’s 30% fee
Apple’s 30% fee on in-app purchases has always been a hot topic, with many companies trying to find ways to bypass the fee altogether. One notable case was Epic, which allowed customers to purchase items via credit card from within the Fortnite app. Unsurprisingly, this resulted in Fortnite’s removal from the App Store and spurred an ongoing legal battle.
Facebook, and its subsidiary Instagram, now also have plans to bypass the fee, but without incurring the ire of Apple’s legal team.
“When there are digital transactions that happen on iOS, Apple insists that they take 30% of that.” Adam Mosseri, CEO of Instagram, told CNBC. “There are very few exceptions. For transactions that happen on iOS, we are going to have to abide by their rules… but generally we are going to look for other ways to help creators earn a living and facilitate transactions that happen elsewhere. “
To avoid the 30% cut on digital products, Instagram can push creators to connect with customers outside of the app, allowing them to bypass Apple’s commission and keep doing business. Facebook would likely create a framework for creators to use that could be mutually beneficial to both creators and Facebook itself, which could charge its own commission.
CNBC notes that Facebook has yet to reveal what cut it would take from the creators. However, the report indicates that the cut would be less than 30%.
Facebook is known as one of several companies leading the charge against Apple. In May, it was discovered that the social media giant would consider adding new screens for both its main app and Instagram, to educate users that enabling tracking under Apple’s app tracking transparency policy “will help maintain Free to use applications.