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Facebook taunts Apple: Social network won’t take a cut on creators’ revenue until 2023

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Facebook plans to not take a cut revenue from creators who make money on its platforms until 2023, Facebook CEO Mark Zuckerberg said Monday.

In a direct shot during Amid its ongoing public spat with fellow big tech rival Apple, Zuckerberg said in a post that it would be less than what the iPhone maker will take.

“To help more creators make a living on our platforms, we’re going to keep paid online events, fan subscriptions, badges, and our upcoming independent news products free for creators until 2023. And when we do introduce a revenue share, it will be less than the 30% that Apple and others take,” said Zuckerberg, who didn’t add what the exact percentage would be. 

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Zuckerberg’s comments about creators’ fees for Facebook and Instagram come on the same day as Apple is making a slew of software announcements during its Worldwide Developers Conference. Zuckerberg’s post also comes after growing developer dissatisfaction with Apple’s revenue-sharing fees and Apple’s trial against “Fortnite” creator Epic Games accusing Apple that its App Store is monopolistic. 

Also on Monday, Facebook introduced a new payout interface “to help creators better understand their payouts.” The company said that starting with paid online events, creators will see what their payouts will be after taxes, refunds, and In-App Purchasing fees from purchases made on iOS and Android devices where applicable. The interface will be initially launched web-only for paid online events, Facebook said.

For its part, in November Apple first announced its App Store Small Business Program for developers. The program will allow developers who earn less than $1 million in annual sales per year from all of their apps to qualify for a reduced Apple App Store cut of 15%, half of Apple’s standard 30% fee, on all paid app revenue and in-app purchases.

If developers earn less than $1 million in a future calendar year, they can re-qualify for the 15% commission the year after. Apple said if they make more than $1 million, the standard commission rate will apply to future sales.

Facebook has also been preparing for Apple’s recent privacy changes that could affect the social media platform’s revenues. In April, Facebook COO Sheryl Sandberg told analysts during a call with investors that the company is doing a huge amount of work with its customers, especially small businesses dependent on the platform to make money, to help mitigate the changes by having access to fewer user data.

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