Facebook Avoids Apple’s App Store Fees by Introducing New Subscriptions Payment Link
Facebook is launching a new tool for content creators to help them earn money on the platform. The company will soon enable creators to use custom web links, directing fans to support them using Facebook’s own payment system. This method will thus avoid Apple’s 30-percent App Store commission.
This week, Facebook announced that its Subscription payment link would begin rolling out to creators. As reported by The Verge, the feature will be available in 27 countries, including Canada. Those who meet the eligibility criteria will begin seeing the ability to direct fans to Facebook’s payment system. The benefit of using the link rather than Apple’s in-app subscription is that Facebook is providing creators with all the money they earn from the direct link with the exception of taxes until 2023 at the earliest. On top of that, creators will earn a bonus of between $5 to $20 for every subscriber they add, regardless of the subscription method.
A Facebook spokesperson told The Verge that the method the company is taking to avoid Apple’s App Store commission is believed to have always been allowed on iOS. Although Facebook provides alternate payment options, something that is strictly forbidden on the App Store, the company teeters around the rules. Facebook’s method provides an alternative to benefit the creators and not the developer. Additionally, the method of using Apple’s payment system will remain.
Meta CEO, Mark Zuckerberg also spoke about the new payment system. In a Facebook post, Zuckerberg stated that the company is “focused on unlocking opportunities for creators to make money from their work.”
Apple’s App Store commission rate has been criticized by developers and publishers in the past. Although the company has decreased its commission rate down to 15-percent for small businesses, some believe that Apple’s regulations fall under anti-trust and have challenged the iPhone maker in court, including Fortnite developer Epic Games.