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Attack on AppleINTL

Attack on Apple

Has Apple (AAPL) been too greedy in its relationship with app creators? Its competitor Meta (FB) seems to think so. Last week, Mark Zuckerberg announced a new workaround to the 30% cut of transaction fees that Apple takes from content creators on its iOS platform. The new service will provide a link for users to pay for in-app transactions via a web-based Facebook native payments system. When users make in-app purchases through this payments system, 100% of the proceeds (minus tax) are sent to the app creator.

Did Zuckerberg take inspiration from South Korea? Like Apple, Google (GOOG) also takes a cut of in-app purchases made on its Android platform. Earlier this year, South Korea’s National Assembly passed a law aimed at Google that mandates mobile app store operators allow for outside payment handlers, giving users a choice of how to pay for in-app purchases.

Last week, Google finally bent to this new law, announcing it will begin giving developers the option of using alternative payment systems — and thereby avoiding giving Google a slice of the pie.

why it matters

Zuckerberg made clear his intentions for undercutting Apple's in-app fees. In a Facebook post by Zuck, he said "as we build for the metaverse, we're focused on unlocking opportunities for creators to make money from their work. The 30% fees that Apple takes on transactions make it harder to do that." How is Tim Cook going to respond to that one?