Meta to charge metaverse developers about 50 per cent fee, much higher than Apple

Highlights:

• Apple attacked Facebook’s parent company Meta, this week.
• The two tech giants are fighting over who treats developers worse.
• Apple called out Meta’s “hypocrisy” for charging nearly 50% of developer revenues from digital asset sales.

Facebook’s parent company Meta recently announced its plans of charging nearly 50 percent on all metaverse purchases and sales, drawing criticism from fellow tech giant Apple. Meta announced in a blog post, that it will start allowing a select number of creators on its Horizon Worlds metaverse to start selling virtual items. The company also stated that it would be taking a 47.5 percent cut on each of the transactions –  a “hardware platform fee” of 30 percent through its Meta Quest Store with a 17.5 percent cut in Horizon Worlds itself.

Meta will charge creators fees of up to 47.5%

According to Meta spokesman Kamran Mumtaz, the business charges a 30% fee on its virtual reality Quest storefront to “balance the cost of our Quest devices at retail” – Meta is making up for the headset’s cost by charging developers a fee for the goods they sell. $299 is the suggested retail price for the Meta Quest headset. Revenue produced on their virtual reality headset, the Meta Quest, and within its metaverse platform, Horizon Worlds is charged separately.

“If a creator sells an item for $1.00, then the Meta Quest Store fee would be $0.30 and the Horizon Platform fee would be $0.17 (25% of the remainder), leaving $0.53 for the Creator before any applicable taxes,” the spokesperson said.

They continued: “Over time, we plan to bring Horizon Worlds to more platforms and so the platform fee won’t always be going to Meta. As Horizon Worlds rolls out to more platforms like mobile, we expect those platforms to charge their own fee. The Horizon Worlds fee which is 25 percent of the remainder would be applied after any relevant hardware platform fee has been applied.”

The commission of 47.5 percent that the company has proposed is, however, much higher than what Apple charges developers, 15 to 30 percent. Meta was among the few companies that criticized Apple for its cut in App Store payments. “The 30% fees that Apple takes on transactions make it harder to do that, so we’re updating our Subscriptions product so now creators can earn more,” CEO Mark Zuckerberg said in November.

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Megha Gupta

Megha Gupta is one of the leading writers of techzimo.com. She is working on Tech Zimo for the last 4 years, Apart from a writing job, she is a professional lecturer in a technology university, Know more about her here on Facebook.