Facebook ‘won’t take cut from creators until 2023’

The news was announced by Facebook CEO Mark Zuckerberg in a post on Facebook this week. The move is an extension of the company's initial commitment in March that it would not collect revenue from its creator tools up until August.

“To help more creators make a living on our platforms, we’re going to keep paid online events, fan subscriptions, badges, and our upcoming independent news products free for creators until 2023,” Zuckerberg said adding that when the company does start taking a commission, it will be less than 30%.

In the post, Zuckerberg referred to the ‘Apple tax’, which is a 30% commission that Apple charges on all products sold through apps that users download from its App Store. Last month, the European Commission accused Apple of distorting competition in music streaming, and said the company abused its dominant position for the distribution of music streaming apps through the App Store. Google also takes the same cut as Apple from creators’ revenue.

Facebook and Instagram have introduced a number of tools to help businesses sell directly to their audiences on social media since the negative impact of the COVID-19 pandemic took effect. The decision not to take a cut from creators could attract more talent and boost the adoption of the services. Facebook is also expected to launch a new payout feature that allows content creators to determine how different companies’ fees and taxes will impact their earnings from those platforms.

Meanwhile, Instagram on Tuesday introduced an affiliate programme and Shops for creators to help them monetise their content on the social media platform. Zuckerberg made the announcement during the keynote of the company’s first Creator Week conference, which took place online.

“I believe people are naturally creative. We want to share what we make with others. A lot of times, we want to turn that into a career as well. Everyone here today is proof of that. You just need access to the correct tools,” he said.

Instagram says that in the coming months, it will begin testing tools that will enable creators to build a business by recommending products to followers and earn a commission for the purchases that they drive.