Facebook Strikes Deal to Skirt Apple's App Store Commission -- Update
September 25 2020 - 2:32PM
Dow Jones News
By Sarah E. Needleman
Apple Inc. said it is giving some businesses a reprieve from
paying a 30% commission on paid events and experiences through
mobile apps, a move that comes as the App Store owner faces
scrutiny from software developers and regulators over how its
digital marketplace operates.
The announcement Friday follows Facebook Inc. confirming that
Apple approved its request to exempt businesses hosting live online
events through its app from being required to pay a cut of sales to
Apple.
Apple's exemption, which will last until the end of the year, is
significant because it doesn't normally allow app developers to
process payments for in-app purchases themselves or use third-party
services, saying those alternative platforms could pose security
risks.
The technology company instead makes developers use its own
payment system and takes a 30% cut of sales from paid apps and
in-app purchases, as well as from digital subscriptions in the
first year. Apple has said that amount is in line with what most
other app marketplaces charge and helps cover the cost of store
services it provides, such as user privacy.
An Apple spokesman said the move is a recognition that some app
developers, including home-rental company Airbnb Inc., have
expressed interest in selling online experiences as the pandemic
halted many in-person gatherings and events. He said Apple will
closely monitor any customer issues and contact developers to
quickly and decisively resolve any that arise.
"To ensure every developer can create and grow a successful
business, Apple maintains a clear, consistent set of guidelines
that apply equally to everyone," the company said.
Write to Sarah E. Needleman at sarah.needleman@wsj.com
(END) Dow Jones Newswires
September 25, 2020 14:17 ET (18:17 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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