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Facebook Says Apple Won't Let It Tell Users About The 'App Store Tax'

Facebook Says Apple Won't Let It Tell Users About The 'App Store Tax'

Facebook Inc (NASDAQ: FB) claims its attempts to inform users that Apple Inc (NASDAQ: AAPL) would take a 30% cut from its new online events feature was thwarted by the latter, Reuters reported Thursday.

What Happened: The Mark Zuckerberg-led social media platform was forced to remove a message that informed users of Apple’s cut in order to get its events tool aimed at helping small businesses affected by the COVID-19 pandemic to users, according to Reuters.

Apple allegedly referred to its App Store rules that prohibit developers from displaying “irrelevant” information, the social platform claimed. 

“Unfortunately Apple rejected our transparency notice around their 30% tax but we are still working to make that information available inside the app experience,” Facebook told Reuters.

A similar message due to appear on Alphabet Inc’s (NASDAQ: GOOGL) (NASDAQ: GOOG) Google Play Store reportedly doesn't show up on that marketplace either.

Why It Matters: Last week, the social media giant voiced criticism over what it referred to as the “App Store Tax” on its initiative to support small businesses through online events.

The platform wanted Apple to reduce its 30% commission or alternatively let users use Facebook Pay.

The Menlo Park, California-based company is also facing challenges related to advertising revenue, which it says would be significantly affected by changes the iPhone maker has made to its iOS 14 operating system.

Epic Games Inc sued Apple this month after its “Fortnite” game was removed from the App Store as it tried to circumvent the 30% cut by introducing alternative payment systems for in-game purchases.

Price Action: Facebook shares closed nearly 3.5% lower at $293.22 on Thursday and fell another 0.3% in the after-hours session.


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