Facebook hopes to promote “offline transactions” between creators and companies, allowing creators to bypass Apple’s 30% purchase fee from within the app.
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 said CNBC. “There are very few exceptions. For transactions that happen on iOS, we will have to abide by their rules … but generally we will 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 pressure creators to connect with customers outside of the app, allowing them to bypass Apple’s commission fee and keep doing business. Facebook would likely create a framework for creators to use that could be of mutual benefit 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 creators. However, the report indicates that the cut would be less than 30%.
The Facebook framework would only exist for those who create digital content, from artwork to services. The sale of physical goods does not carry a 30% fee on Apple 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 inform users that enabling tracking under Apple’s app tracking transparency policy “will help maintain “applications for free use.
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