Apple’s 30% Rate Hurts – Apple has established itself as the ‘company of the rich’.
Anyone who’s seen possessing any electronic device. It has a half-eaten apple logo on it is categorically deemed as belonging to an upper class.
Recently, according to an announcement made by the widely popular company clears one thing, i.e, the customers will not be very happy from now on.
In simplified terms, any transaction that happens within the apps installed on Apple devices will be levied about 30% of taxes or revenues.
New policy and emerging traders : Apple’s 30% Rate Hurts
There have been extensive debates around the topic since the news came in.
While some companies adopted a ‘no say’ policy, other significant competitors.
Facebook criticized the policy and accused Apple of giving financial hurt and a backward push to the new and emerging traders.
The company owned by Mark Zuckerberg emphasized the harsh times of pandemic and how it will contribute to worsening the situation.
- A new social media feature is present in every app.
- It promotes the events and related activities that take place on the online platforms with the sole involvement of money in it.
- Live concerts and performances are being organized by small businesses.
People who wish to attend streams charged an affordable and appropriate entry fee.
- The newly added feature provides aid to those who can earn from this medium.
Especially when we are all stuck in our homes, unable to do anything. This gave impetus to Facebook for logging in a complaint.
Facebook’s Payment method
To make matters worse, Apple has put a prohibition to pay using Facebook’s payment method, i.e, Facebook Pay on Friday in about 20 countries. Apple users will not be able to process transactions on their devices using Facebook Pay. This also creates a potential barrier and streamlines the options available with the users to make their payments on iOS.
Along with limiting the choices, this decision also eliminates the user’s only available chance of lowering the total payment.
Every time we are in the process of money exchange, we always get some discount coupons. Facebook has also expressed its grief on the step announced by the company by taking the support of the statement that in a difficult time.
Like this, all the well-grounded firms should lend a helping hand to the aspiring traders, and if not help, then they should at least mend the ways to cooperate with small businesses. Notably, despite the strong accusations made by Facebook. The company itself dives in and makes a public announcement that it will not entertain or support any discount on the taxes levied
This step has been extended until 2021,conveyed by the executive of Facebook, Fidji Simo.
A growing- list of app developers are accusing the newly made decision concerning the revenue- sharing policy for in-app purchases.
Telegram on the way : Apple’s 30% Rate Hurts
While Facebook and Apple share an old frenemy relation by never leaving a chance to criticize each other’s new policies and steps. Like Microsoft, Epic Games, and Telegram are also strongly condemning the decision taken by Apple, they describe the action as being ‘anti-competitive’.
Telegram is taking every necessary step and has launched a comment to gain support on censoring the app from every available App store.
However, Apple did not respond or gave any stances to the requests made by firms for comment.
Developers of Apple require users to pay using their credit cards. Therefore it has made some amends and does not take the 30% commission providing a stimulus to services. Like ride-sharing or in-person classes.
However, the in-person services are not in person right now, they have also gone virtual complimenting the given time. So, the rules still charge the fee. If we take a closer look at the recent decision made by Apple, then it will unravel new meanings and explanations. Anyone who uses the device by Apple has to pay a 30% tax on any payment he makes includes the transaction they go through to attend a live stream or concert.
Since 30% is a huge amount which is paid in taxes. Only a handful of people must be willing to pay the tax and attend the event. We should also not turn a cold shoulder on the smaller services available over live streams.
To take an example, some workshops on yoga classes. These are the services that are inevitable at this time.
Also, we are not foreign to the fact,
A large fraction of people are using devices that have been owned by Apple.
A lingering question persists, whether the customers will continue their purchases or will there be a large drop in the transactions they initiate. This step has a direct impact on the pockets of the budding traders.