Apple Gives Facebook Temporary Reprieve, Won't Collect Fees on Paid Events Until 2021

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Author: Juli Clover

Apple has decided to temporarily waive the 30 percent cut that it takes from in-app purchases for Facebook's in-app paid event feature, reports CNBC. Facebook had accused Apple of hurting small businesses by collecting fees from the new feature, which lets users attend online classes and events through Facebook.

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The policy update will pertain to ClassPass and Airbnb, two companies that are also offering new digital experiences and classes within their apps.

In a statement, an Apple spokesperson said that it reversed its decision on the Facebook event fees because of the pandemic and because Apple wants to give businesses more time to adapt to digital business models. Apple says that Facebook will not have to pay fees through the end of the year, with Apple to resume taking its standard 30 percent cut in 2021.

Despite the reprieve, Facebook has complained that the rules are not applicable to gaming businesses that want to sell online access to their events.

According to Apple, the decision is not applicable to gaming businesses because those have always been digital only. Facebook also plans to waive its own fees for the Paid Events feature through at least August 2021, even though Apple will begin collecting fees again after December 31.
"This is a difficult time for small businesses and creators, which is why we are not collecting any fees from paid online events while communities remain closed for the pandemic," Facebook spokesperson Joe Osborne said in a statement. "Apple has agreed to provide a brief, three-month respite after which struggling businesses will have to, yet again, pay Apple the full 30% App Store tax."
With the in-app purchase Facebook fees waived for now, small business owners who set up online classes or events using the Facebook Paid Events feature in the Facebook app on iPhone or iPad will be able to keep the all of the money customers pay to attend.
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This article, "Apple Gives Facebook Temporary Reprieve, Won't Collect Fees on Paid Events Until 2021" first appeared on MacRumors.com

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