Instagram CEO Adam Mosseri told CNBC that Facebook is looking for ways to encourage creators to do business offline, avoiding Apple’s 30% commission rate on its App Store.
Mosseri made the comments on CNBC’s Squawk Box, where he stated:
“When there are digital transactions that occur on iOS, Apple insists that they take 30% of that. There are very few exceptions. For transactions that occur on iOS, we will have to abide by their rules … but generally we will look for others ways to help creators earn a living and facilitate transactions that happen elsewhere. “
Mosseri said Facebook could help brands and creators “examine and find each other” so they “can make those transactions go offline,” turning affiliate marketing transactions into real goods rather than digital goods. Mosseri says Facebook “will try to lean on places where creators can really earn a stable living.”
All in-app purchases related to digital products on iOS are subject to Apple’s 30% commission rate (15% for small businesses), a key point of controversy in the recently concluded Epic Games lawsuit. As CNBC points out, Instagram and Facebook could push this “to circumvent” Apple’s rules “in an effort to make money off the iOS operating system.”
Facebook and Apple have publicly clashed before with the 30% commission rate. Last year, Facebook added a note to its app that told users that when they bought event tickets online, Apple would get 30% of the profits. Apple forced the company to remove the message, claiming that the information was not relevant to customers. Facebook and Apple have also clashed over recent changes made to iOS 14 that give users the option to opt out of third-party tracking. Apple made big privacy moves with iOS 15 at WWDC, announcing more changes to Siri and iCloud, including a new iCloud + feature with additional security measures.