The company that was formerly Facebook has announced plans to avoid Apple's notorious platform fees. This is the latest in a long-running battle between major software companies with the creator of iOS. Metas Mark Zuckerberg, the founder of Facebook, announced Wednesday that it would offer eligible creators new links on its platform that will allow them to accept direct payments, bypassing Apple's 30% cut.
Zuckerberg stated that we are focused on creating opportunities for creators to earn money as we build for the metaverse. Apple's 30% transaction fees make it difficult to do so, so we updated our Subscriptions product in order for creators to earn more.
Facebook creators with Facebook pages that are eligible for subscriptions may share the promo links via text or email. This will direct their followers to a payment portal operated by Facebook Pay. Facebook announced a bonus program for creators that will give them between $5 and $20 per new subscriber until the end. This is part of its $1 billion creator program.
Facebook's Patreon-like subscriptions product allows people who have popular Facebook pages to access special monetization tools that allow them to make monthly recurring payments. The current eligibility requirements for signing up are to have at least 10,000 followers, more than 250 returning viewers, and 50,000 post engagements.
Facebook stated that it will not be collecting fees from creator payments until 2023. However, given its aggressive approach to the space, the company certainly has plans for cashing in on the booming economy. It also promised that it would not collect any fees from creator payments after giving people an initial year rent-free. Although the company had previously intended to take 30% of subscription earnings, it has rescinded those plans at this time.
Apple has always collected a standard 30% charge from paid apps. This is a significant revenue source for the company. Apple reduced the 15% cut for developers earning less than $1 million per year to give smaller app makers a break.
Many large software developers find Apple's app store fees a problem. Epic Games, Fortnite's maker, sued Apple over its in-app fees. This was in the context of a campaign that promoted Epic as the small guy standing up for developers all around the world. Meta, valued at $923 billion as of the writing, is positioned similarly in the fight for creator payments it has just won with Apple.
A judge in California's Epic Games v. Apple case ruled on September that Apple could not block developers from pointing users to external payment options that bypass Apples high fees. This decision allowed Facebook to create a new way around. Apple appealed and requested a stay of the injunction by the judges last month.
Facebook's new solution for creator payments is not the first time it has clashed with Apple. Nor is it the first instance in which Facebook tried to align itself with the common man. Facebook was so concerned by iOS 14's anti-tracking features that they were attempting to improve user privacy, it ran full-page print ads in protest.