Apple announced a 30% commission fee waiver extension for the companies that offer digital classes or virtual events through iPhone apps. Those companies would be able to charge their customers directly with Apple’s 30% commission as the companies do not need to use Apple’s App Store in-app purchases through June 2021.
The extension will help businesses by giving them more time to hold paid digital events rather than in-person events during the Covid-19 pandemic, without the additional fee.The extension was already in place till December 2020 which now has been extended till June30, 2021.
Apple was criticized for anticompetitiveplatform and fees and with the recent announcement,the company tries to control the criticism. Apple also announced earlier this month to reduce its commission to 15% for app developers making under $1 million on Apple’s platforms in 2021.
Apple followed the Facebook steps and waived the in-app purchase requirement for group classes and events in September. Facebook recently introduced a paid event feature and giving a warning to its customers that a cut of transactions for paid events would go to Apple. In Response Apple, extend its fee waiver till June 2021.
Apple 30% cut of total payment from iPhone apps has been an antitrust focus of policymakers around the world. In SeptemberApple, clarified that one-to-one person classes through an iPhone app could be billed directly but any virtual classes or group, with multiple people, were required to use App Store payments.
Apple CEO Tim Cook said that the Coronavirus pandemic is a tragedy for the whole world and Apple will never take any advantage of it. There are cases where something has moved to a digital service, which technically does need to go through our commission model.