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Airbnb and ClassPass Claim Apple Wrongly Demanded Commission on Sales of Virtual Classes

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Airbnb and ClassPass have claimed that Apple's demand to take a cut of online sales was wrong, reports The New York Times.

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ClassPass helps users to book classes at local gyms, but due to the global situation, they were forced to move their business online and offer virtual classes instead. ClassPass claims that it received a "concerning" message from Apple stating that a 30 percent commission on sales was now required. Apple reportedly explained that long-standing App Store rules entitle it to a significant cut of online sales, although none were required previously because classes were held in person.

With gyms temporarily shut, ClassPass rolled back its usual commission on virtual classes, passing 100 percent of sales directly to gyms. ClassPass explains that Apple was therefore, in effect, asking for a cut of sales from struggling independent fitness centers, yoga studios, and boxing gyms. Instead of complying with the rule, ClassPass pulled virtual classes from its iPhone app.

Airbnb reports a similar experience when it began to offer "online experiences," such as virtual cooking classes and meditation sessions, to respond to the changing demands of customers in recent months. When demanding commission on these online sales, Apple said that it believed that Airbnb had intended to offer virtual experiences for some time, and despite establishing its multibillion-dollar business with the help of its iPhone app, Apple never previously asked for fees. Apple's negotiations with Airbnb are ongoing, but Apple has cautioned that if the two companies cannot come to terms, it may remove Airbnb's app from the App Store.

Apple commented that waiving the commission in these cases would not be fair to many other app developers that have paid commission for similar services. "To ensure every developer can create and grow a successful business, Apple maintains a clear, consistent set of guidelines that apply equally to everyone," the company said in a statement. Apple said a small fraction of iPhone apps were subject to its commission, which is in line with the fees other platforms charge, according to a study released by Apple last Wednesday.

Many companies and app developers have recently complained that Apple forces them to pay commission to be included in the App Store, which is essential to reach the 900 million potential customers with iPhones. Many complain about Apple's "capricious enforcement" of rules, which can lead to their apps' removal from the App Store and damage to their business.

Both Airbnb and ClassPass have discussed Apple's demands with congressional offices that are investigating how Apple controls the App Store as part of a year-long antitrust inquiry. Tim Cook and various other big tech CEOs are set to participate in an antitrust hearing on Wednesday.

Article Link: Airbnb and ClassPass Claim Apple Wrongly Demanded Commission on Sales of Virtual Classes
 
Article Link
https://www.macrumors.com/2020/07/28/airbnb-classpass-claim-commission-wrong/
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Reactions: macfacts and supremedesigner
That's ****ed up. And you people keep wondering why the App Store is under scrutiny.

Again, it's not the 30%. It's what they keep doing to get get that 30%.

Let me guess, more people disagreeing without offering a point a view? ****ing shocker.
 
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Reactions: 4nNtt, u+ive, AlexGraphicD and 24 others
Today's congressional hearing is going to be very interesting. I bet the EU will be listening in to see how much they can get in fines.
 
When will people realize there is never any freebies with Apple, every move is carefully assessed be it direct $ or indirect kudos etc that are likely deductibles
 
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of course both companies could simply offer sign up and payment on their own web sites, and then it would be free to use through apple store. Ho hum, facts give you a headache, don't they?
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SteveJUAE said:
When will people realize there is never any freebies with Apple, every move is carefully assessed be it direct $ or indirect kudos etc that are likely deductibles
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of course both companies could simply offer sign up and payment on their own web sites, and then it would be free to use through apple store
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oneMadRssn said:
No, you can't. That's the problem. There is literally no alternative to Apple/Google in distributing mobile software. If your business is built on mobile software, then there is nowhere else to leave to.
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of course both companies could simply offer sign up and payment on their own web sites, and then it would be free to use through apple store
 
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I can understand if they want to protest to Apple and all that, but the rules are what they are. They should have worked with Apple beforehand.
 
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oneMadRssn said:
No, you can't. That's the problem. There is literally no alternative to Apple/Google in distributing mobile software. If your business is built on mobile software, then there is nowhere else to leave to.
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Safari will allow you to run any application you want. Especially when almost all of these services that have complaints might as well just be a wrapper for their website.
 
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supremedesigner said:
I agreed with Apple on this one. It isn't fair to other companies if they are exempted.

If you don't like it, then you can leave anytime.
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Or, you can do what is sensible, create your own web site signup and payment system and then not use a third party which may charge you a fee. Not rocket science here
 
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MauiPa said:
Or, you can do what is sensible, create your own web site signup and payment system and then not use a third party which may charge you a fee. Not rocket science here
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"You download the app and it doesn’t work, that’s not what we want on the store,” says Schiller. This, he says, is why Apple requires in-app purchases to offer the same purchasing functionality as they would have elsewhere.
 
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MauiPa said:
Or, you can do what is sensible, create your own web site signup and payment system and then not use a third party which may charge you a fee. Not rocket science here
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It is against the appstore rules to direct a user to use something other than in-app payments.

Companies are free to make such systems....then hope the users can find it on their own.
 
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Stevez67 said:
No different than every retailer ... go to any store (online or brick & mortar) and ask them to let you advertise their service or software for free and see how far you get.
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That is such a stupid comparison. You're basically saying that they can't advertise that service on the app store. No kidding. I'm talking about inside of their own app.

That's like saying you buy a PS4 from Best Buy, but because Best Buy wants a cut, Sony can't advertise PS+ on the PS4.
 
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