Facebook Strikes Deal to Skirt Apple's App Store Commission

By Sarah E. Needleman 

Facebook Inc. said Apple Inc. approved a request to give businesses a temporary reprieve from paying a 30% commission on paid online events, a special arrangement that comes as the App Store owner faces criticism over how its digital marketplace operates.

The agreement, which runs through the rest of this year, allows Facebook to use its own payment system to process transactions for the live events.

Apple doesn't normally allow app developers to process payments for in-app purchases themselves or through third parties, as it has said that external services could pose security risks.

The technology giant instead makes developers use its own payment system and takes a 30% cut of sales from paid apps and in-app purchases as well as from digital subscriptions in the first year. Apple has said that amount is in line with what most other app marketplaces charge and helps cover the cost of store services it provides such as user privacy.

Write to Sarah E. Needleman at [e-mail]

(END) Dow Jones Newswires

September 25, 2020 12:20 ET (16:20 GMT)

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