Apple Clashes With Meta Over Higher Commission Cuts

Meta is trying to become the next big thing and attract a user base that rivals the number Facebook has. In their effort to do that, the company has released a new virtual reality based social media application called, Horizon Worlds. This type of social media application knows no bounds as the users can connect, create and explore in ways that they never have before.

One thing is for sure, with every new application, there has to be a way the company makes their money back, and Meta does that by providing items and goodies in the Metaverse. These items can be purchased and can be used in Horizon Worlds too. But the issue here is that the commission that Meta will be taking over these purchases is unlike any other platform.

To get an idea, all the purchases for Horizon Worlds will have a 25% cut for Meta, which does not sound all too bad at first, but there’s more to it. Another 30% of commission will be charged if the user makes the purchase through the Oculus Store, making the total come up to a whopping 47.5%, which is more than any other platform is charging at the moment.

Apple was quick to jump on them for this unrealistic cut as Meta has always been on their case for charging 30% commission on purchases on their platform. Apple feels that it is unfair for Meta to be expecting Apple to not take a cut, but charge a higher percentage themselves, calling them hypocrites. To which Meta replied that their virtual reality hardware is highly subsidised, therefore they charge a higher percentage for their software. Check out the tweets and statements enlisting these details below:

Apple’s spokesperson, Fred Sainz’s statement to Marketwatch:

Meta has repeatedly taken aim at Apple for charging developers a 30% commission for in-app purchases in the App Store and have used small businesses and creators as a scapegoat at every turn. Now Meta seeks to charge those same creators significantly more than any other platform. Meta’s announcement lays bare Meta’s hypocrisy. It goes to show that while they seek to use Apple’s platform for free, they happily take from the creators and small businesses that use their own.

“Meta has repeatedly taken aim at Apple for charging developers a 30% commission for in-app purchases in the App Store… it goes to show that while they seek to use Apple’s platform for free, they happily take from the creators & small businesses that use their own.” Absolute ????

— Sami Fathi (@SamiFathi_) April 14, 2022

Apple takes 30% of software and a significant margin on their devices. They’ve capitalized on their market power to favor their own business interests, which comes at great expense to developers. https://t.co/ZPjgLR8Woq

— Boz (@boztank) April 14, 2022