Apple suspended a 30% commission fee for businesses offering paid events and experiences through apps after the tech giant faced complaints over its app store rules.
Apple will halt the fees until the end of 2020, according to the Financial Times. The move is viewed as extraordinary for the company, which usually doesn’t allow app developers to process payments for in-app purchases directly or through third-party services due to security risk concerns.
Due to the coronavirus pandemic, many companies were prompted to sell tickets to online classes through iPhone apps. Facebook had launched a feature to allow businesses to host events through its app and said Apple had relented in allowing the site to use its own system, Facebook Pay, to process payments for businesses.
“Apple has agreed to provide a brief, three-month respite after which struggling businesses will have to, yet again, pay Apple the full 30 per cent App Store tax,” Facebook said.
Gaming apps will remain exempt from the suspended fees as they’re not forced to operate differently due to the pandemic.
App developers have increasingly become critical of the fees Apple collects, describing them as a monopolistic practice, reports the Wall Street Journal. Companies including Epic Games (which makes Fortnite), Spotify, and Match Group, the owner of Tinder, recently formed a coalition dedicated to pushing legal and regulatory changes as to how the app marketplaces operate.
A coalition spokesperson disputed Apple’s recent decision to halt its app fees, describing it as a distraction from other issues. Though the group said it’s pleased with the move, it believes fees should stop for all developers indefinitely.
