For the remainder of 2020, Apple will stop collecting a 30% App Store tax on Facebook Function for paid online events, which is geared towards helping small businesses get started during the Covid-19 pandemic. On Friday, Facebook announced that companies can keep all income from paid online events, net of applicable taxes, through December 31.
Facebook Pay is used to process all paid online event purchases. This means businesses and creators won't have to pay that 30% App Store tax for the rest of the year.
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"This is a difficult time for small businesses and developers, which is why we are not charging for paid online events while communities remain closed due to the pandemic," said Joe Osborne, a Facebook spokesman, in a statement. "Apple has agreed to give a short three month grace period after which companies in trouble will have to pay Apple the full 30% App Store tax again."
The new measures apply to all companies with the exception of game developers, Facebook announced in a blog post. According to Apple, apps that offer physical services in addition to the app always had to provide payment options other than in-app purchases such as Apple Pay or a credit card. Given that the pandemic has hampered developers' ability to securely deliver personal experiences, the iPhone maker is giving them more time to match their virtual experiences. According to Apple, game developers are not included as they are not physical companies that have been affected by the pandemic.
"The App Store offers a great business opportunity for all developers, reaching half a billion visitors in 175 countries every week," said a statement from Apple. "To ensure that every developer can build and grow a successful business, Apple maintains clear, consistent guidelines that apply to all equally."
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