Apple berates Meta for hypocrisy
Meta plans to charge a 47.5% commission on virtual transactions on its Metaverse — a staggering fee compared to what other digital operators, including Apple, charge for transactions on their platforms.
Apple berates Meta for hypocrisy
Everyone probably knows about Apple’s problems with Meta. Not only does the company formerly known as Facebook have a business plan that relies heavily on collecting the kind of personal data Apple thinks is important, but the social and advertising company has Cupertino for the 30% ( actually 15%) added. it charges developers for App Store sales.
Because of this, Apple has gone public with a very dismissive reaction to Meta’s news. Apple spokesman Fred Sainz said in an email retrieved by MarketWatch:
“Meta has repeatedly targeted Apple for charging developers a 30% commission for in-app purchases on the App Store — and has scapegoated small businesses and developers at every turn,” the statement said.
“Well – Meta tries to charge the same creators significantly more than any other platform. [Meta’s] Announcement exposes Meta’s hypocrisy. It shows that while they’re trying to use Apple’s platform for free, they’re happy to benefit from the developers and small businesses using their own.”
game of Thrones
One might dismiss this as a quarrel between business rivals, but I think the quarrel will have far more impact than most business people immediately realize. That’s partly because we spend too much time focusing on utilizing VR technology for gaming without considering the impact it is and will be having in real life, including emerging medical, maintenance business cases , warehousing and more.
But what advocates in the industry understand – including Apple CEO Tim Cook, who has called the possibilities “profound” – is that VR/AR can be as transformative as the internet.
Consider how the always-connected nature of the internet has transformed every part of life. Now add real-life moment sharing and up-to-date information, all wrapped up in a format that feels way more human than TikTok, made available not just when you’re staring at a screen, but during each one waking moment of your day.
While a large part of me is horrified by this kind of merging of the internet with everyday life, we already see it every time we watch each other play games with a smartphone in a subway station. This oddly spiced salad of reality means that every waking second of our day suddenly invades the attention economy.
And Meta wants to take a 47.5% revenue cut in it.
how much is too much
In other words, in the new frontier that Meta wants to make, it hopes to take almost half the money.
These will not be insignificant amounts of money. The Internet already accounts for 12% of US gross domestic product.
Meta is betting on taking nearly half of a very large (albeit digital) chunk of it. That’s what I call concentrated market power. Indeed, Meta’s frugal ambition makes Apple’s 30 percent (again, 15 percent, in reality) cut in sales look cheap.
Meta has previously said it hopes to create an “iPhone moment” when it unveils the AR devices it hopes will run on its Metaverse; Meanwhile, Apple is expected to attempt to revisit one of its classic launch moments (previously marked by various launches, including those of the Mac, iPad, iPhone, and iPod) with its own take on the AR glasses, perhaps starting as early as WWDC .
But with Meta’s business proposition based on a seemingly unfettered use of customer data and Apple’s concepts of personal data sovereignty, Meta’s commission rates raise big questions for many businesspeople:
Who do you want to pay? Who will your extended semi-virtual company work for? You? Their customers? Apple? Meta? And what exactly is the reasonable commission anyone in Big Tech can charge for events in the virtual worlds of tomorrow?
The meta matter is important
With Apple mentioning today that 22% of all of its carbon emissions come from customers charging Apple devices, what’s the climate impact of an industry that Meta hopes to turn almost 50% profit from?
And what steps will Meta take to mitigate this?
Of course, companies already have to think about how to position themselves to get their own attention in virtual worlds, while the platform providers who will win this war will be the ones who turn light interest into deep engagement.
But how much are you going to charge your customers for trading in a virtual world, and to what extent are you going to happily pass on an additional fee of almost 50% to them?
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