Facebook Instructed Not To Inform Users Of 30-Percent Tax From Apple

Facebook made it known last week that it disagreed with Apple’s policy of demanding a 30-percent tax on subscriptions or in-app transactions revenues from applications hosted via the App Store. News agency Reuters reported that the social media firm had recently shared further information that could further land the iPhone maker in hot water.

According to the report, Apple had instructed Facebook to remove any mention of the revenue cut from the transparency notice in its newly launched paid live streaming service. The notice was intended to provide awareness to users of any additional taxes imposed on their live stream earnings, either from Facebook themselves or other parties. Apple deemed the information as “irrelevant” and cited an App Store rule that prohibits developers from showing such details to users, the social media company added.

“Now more than ever, we should have the option to help people understand where money they intend for small businesses actually goes,” Facebook said in a statement. “Unfortunately Apple rejected our transparency notice around their 30-percent tax but we are still working to make that information available inside the app experience.”

As previously reported, the social media company had initially asked Apple to waive the revenue cut so that all proceeds gained from live streams will be passed directly to users, but the request was declined. Facebook is the third major company to join Microsoft and Epic Games in scrutinising the iPhone maker’s App Store policy.

(Source: Reuters)

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