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Apple-Meta Feud Rages Over Insane Fees Charged to Developers
The Apple-Meta feud continues. This time, it’s over their cuts from sales from their digital developers. Facebook called out Apple on their practice of charging cuts from sales. Now that Meta will now do the same, Apple is calling it out for hypocrisy.
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Apple-Meta Feud Continues to Boil Over
Facebook’s parent company Meta recently announced its plans to charge almost 50% of sales made by developers over its platforms.
The tech company said it plans to take a cut from digital goods sold over its metaverse platform Horizon Worlds. Meta will now impose charges of as much as 47.5% of a developer’s total sales.
Now, Apple is calling out Meta and said that this decision “lays bare Meta’s hypocrisy”. Fred Sanz, an Apple representative, called out the social media company for its hypocrisy.
“Meta has repeatedly taken aim at Apple for charging developers a 30% commission for in-app purchases in the App Store. Meta seeks to charge those same creators significantly more than any other platform.”
Apple Calls Out Meta For Hypocrisy
Previously, Meta’s Facebook complained of Apple’s practice of taking a 30% cut from sales made on its App Store. The cut also includes sales made within apps.
Meta’s Facebook, which has a lot of social platforms and apps available for Apple users, does not agree with the policy.
The iPhone maker’s decision cuts through the revenue generated by Meta’s flagship products: Facebook, Instagram, and WhatsApp.
Eventually, Meta sought to have the courts end Apple’s predatory policy. The company even supported a lawsuit from “Fortnite” maker Epic Games.
The video game maker sued Apple for its monopolistic behavior of restricting the sales of apps only through its App Store.
This ensures that the tech company will get a percentage of revenues not only from app sales but also from in-app purchases. In fact, Meta CEO Mark Zuckerberg complained that this policy allows Apple to charge monopoly rents” on developer revenues.
Apple-Meta Feud is the Pot Calling The Kettle Black
Now, Apple is laughing at Meta for announcing its plans to charge developers itself. With its Horizon Worlds metaverse, the company will collect its cuts from developers.
Meta will charge developers for revenue generated from its virtual reality headset, the Meta Quest, and within the HW platform.
Formerly known as Oculus Quest 2, the virtual reality headset is now marketed as Meta Quest. It allows users to step into a 3D virtual world where their digital likeness can explore worlds, and make friends.
It also allows users to buy virtual items to customize their appearance and experience. Meta hopes to cash in on this by taking a cut from third-party developers.
Meta Charging Developers for its Metaverse
The Apple-Meta feud reignited when Apple discovered Meta plans to charge its developers with even higher rates. The social media company will charge creators 47.5% for selling digital goods within Horizon Worlds on the Meta Quest platform.
All other developers will get a 30% sales fee for selling on the Meta Quest store. Out of the remaining revenue, Meta will charge another 25% for goods sold through Horizon Worlds.
Meanwhile, Kamran Mumtaz, Meta’s representative, said that the company charges a 30% fee to offset the cost of Quest devices at retail.
This means that Meta will make up for the headset’s price by getting a cut from apps made by developers that use the headset. Retail, the Meta Quest headset’s price is $299 suggested retail price.
Meta CTO Fires Back At Apple
In addition, Mumtaz explained the reason for offering VR headsets at lower prices. “Our approach is to grow the market for VR by shipping affordable devices,” he said. “This revenue is critical to maintaining an accessible headset retail price.”
Not wanting to give the tech company the last laugh in the Apple-Meta feud, the social media company fired its own shot.
Meta CTO Andrew “Boz” Bosworth took aim at Apple yet again even as they announced their own developer fees. “Apple takes 30% of software and a significant margin on their devices,” he tweeted. “They’ve capitalized on their market power to favor their own business interests, which comes at great expense to developers.”
Apple-Meta Feud Traces Origins To Difference In Business Model
At the heart of the Apple-Meta feud is the difference between the two companies’ leaders over philosophy. Specifically, Apple CEO Tim Cook disagrees with Meta CEO Mark Zuckerberg’s foundational business model.
Over the years, Zuckerberg provides users with free downloads of its popular social media apps such as Facebook, Instagram, and WhatsApp.
In return, users give consent for Meta to harvest user data that Meta sells for targeted advertising. Apple’s recent decision to restrict apps from collecting user data by default irked Meta.
Consequently, Apple’s decision cost the social company to lose billions in advertising revenue.
Watch the LaterClips video discussing how Tim Cook Blasts Mark Zuckerberg over developer fees:
Loading ...What do you think of the Apple-Meta feud over their practices of charging developers fees for using its platform/store? Also, do you agree that they deserve to take a cut of digital sales made by third-party developers?
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