Apple and Facebook are “butting heads” over the latter’s plan for a new subscription tool in its mobile app, according to recode. The tool will put paywalls around some articles in Facebook’s news feed, and then send users to publishers’ sites to buy subscriptions.
Apple wants to take as much as 30% of any subscription revenue Facebook helps generate, while Facebook wants all of the money to go to publishers, reports recode, quoting unnamed “people familiar with both companies,” adding that the two have been discussing the impasse for months.
Apple takes a cut of up to 30% of subscription revenue from “in app” sales. Facebook’s plan calls for users to sign up for subscriptions outside of its apps, on publishers’ individual web sites, Apple officials consider that an “in-app” purchase, since the impetus for the transaction kicked off inside Facebook’s app, according to recode.