By promoting “offline transactions,” Facebook wants to assist digital creators in avoiding Apple’s 30% commission on digital goods.
Many companies have tried to find ways to circumvent Apple’s 30% fee on in-app purchases, which has always been a hot button issue. Epic offered credit card payment for items within the Fortnite app, which was a notable example. Fortnite was pulled from the App Store as a result of this, and a legal battle continues today.
Additionally, Facebook and its subsidiary, Instagram, are planning to sidestep the fee as well, but without incurring Apple’s wrath.
As Adam Mosseri, Instagram’s CEO, told CNBC, Apple insists on taking 30% of digital transactions made on iOS. We have to follow iOS’ rules on transactions on iOS, but on the whole, we’re looking for additional ways to help creators make a living and facilitate transactions that happen in other places.”
By requiring creators to connect with customers outside of Instagram, Instagram could avoid Apple’s 30% commission fee on digital goods and still make money. Creators would likely benefit from a Facebook framework that would benefit both Facebook and the creators, which would be able to charge its own commission fee.
Facebook has not yet disclosed what cut it would take from creators, according to CNBC. A small percentage of the budget cut is nevertheless noted in the report.
Facebook would offer its framework only to developers of digital content, including artwork, apps, and services. With Apple’s platforms, the sale of physical goods does not incur a 30% fee.
One of several companies leading the charge against Apple is Facebook. In May, the social media giant announced plans to add new screens to its main app as well as Instagram, to educate users about how enabling tracking under the App Tracking Transparency policy will “help” keep the apps free.