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Facebook wants to help digital creators sidestep Apple's 30% commission on digital goods

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Facebook hopes to promote "offline transactions," between creators and companies, allowing creators to sidestep Apple's 30% in-app purchase fee.

Apple's 30% fee on in-app purchases has always been a hot button issue, with many companies attempting to figure out ways to skirt the fee entirely. One notable case was Epic, who allowed customers to purchase items via credit card from within the Fortnite app. Unsurprisingly, this resulted in Fortnite being removed from the App Store, and spurred an ongoing legal battle.

Facebook, and its subsidiary, Instagram, now have plans to sidestep the fee, too, but without incurring the wrath of Apple's legal team.

"When there are digital transactions that happen on iOS, Apple insists that they take 30% of that." Adam Mosseri, Instagram's CEO told CNBC. "There's a very few number of exceptions. For transactions that happen in iOS, we're going to have to abide by their rules... but in general we're going to look for other ways to help creators make a living and facilitating transactions that happen in other places."

To avoid the 30% cut on digital goods, Instagram may push creators to connect with customers outside of the app, which would enable them to skirt Apple's commission fee and still do business. Facebook would likely create a framework for creators to use that could be mutually beneficial to both creators and Facebook itself, who would be able to charge its own commission fee.

CNBC notes that Facebook has yet to disclose what cut it would take from creators. However, the report does note that the cut would be less than 30%.

Facebook's framework would exist solely for those who create digital content, ranging from artwork to services. Sales of physical goods do not incur a 30% fee on Apple's platforms.

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 keep" the apps free to use.

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16 Comments

foregoneconclusion 12 Years · 2857 comments

Facebook is just providing more confirmation that the issue isn't really about 30% being too high, but rather that other companies (like Facebook, like Epic)  want to cut out a share of that commission revenue for themselves without having the added complication of developing phones/tablets and a mobile operating system as well. 

22july2013 11 Years · 3736 comments

without having the added complication of developing phones/tablets and a mobile operating system as well

Agreed. But Apple provides more free services for developers than just that. By “free services” I’m referring to 20 or more services that are covered through the 15% to 30% cut. 

genovelle 16 Years · 1481 comments

without having the added complication of developing phones/tablets and a mobile operating system as well
Agreed. But Apple provides more free services for developers than just that. By “free services” I’m referring to 20 or more services that are covered through the 15% to 30% cut. 

Apple should really get serious about games, social media, ad networks, and search. They should also take the gloves off on music. Increase the price a little on their products and all services become an included 4 year license. Make it free just like the OS upgrades are now. 


These companies want to awaken the bear, so let them have it. Or maybe they should have a spin off for these initiatives called Apple Juice. 

JinTech 9 Years · 1061 comments

genovelle said:
without having the added complication of developing phones/tablets and a mobile operating system as well
Agreed. But Apple provides more free services for developers than just that. By “free services” I’m referring to 20 or more services that are covered through the 15% to 30% cut. 
Apple should really get serious about games, social media, ad networks, and search. They should also take the gloves off on music. Increase the price a little on their products and all services become an included 4 year license. Make it free just like the OS upgrades are now. 
These companies want to awaken the bear, so let them have it. Or maybe they should have a spin off for these initiatives called Apple Juice. 

Or maybe these big time developers should suck it up and stop whining? 

auxio 19 Years · 2766 comments

Facebook would likely create a framework for creators to use that could be mutually beneficial to both creators and Facebook itself, who would be able to charge its own commission fee.

Not to mention incorporating information about the things you buy into their profile of you.  No thanks.