Meta (recognized as an extremist organization in Russia), the parent company of Facebook, intends to charge a 47.5% commission on sales of digital goods in the Horizon Worlds meta-universe, CNBC reported, citing a corporate representative.
The fee structure includes a 30 percent fee to the Meta Quest Store for virtual reality headset apps, as well as a 17.5 percent Horizon Worlds commission.
On April 11, the corporation announced that it had opened up the ability for some users to create and sell virtual items in Horizon Worlds, including NFTs. The fees were not specified in the announcement.
OpenSea, the largest NFT marketplace by volume, charges 2.5% per transaction; its competitor LooksRare has a 2% rate.
Apple charges app developers 30% for sales through the App Store. Meta CEO Mark Zuckerberg and other executives have previously criticized the company for high fees.
In November 2021, Zuckerberg said the corporation intends to help creators avoid high App Store fees.
“As we’re building a meta-universe, we’re focused on giving creators opportunities to make money from their work. Apple’s 30% transaction fee makes that difficult, so we’re updating our subscription product so creators can get more”he said
Meta’s stated commission rate was higher than Apple’s, but Horizon VP Vivek Sharma called it “pretty competitive in the marketplace” in a comment for The Verge.
Horizon Worlds’ commission size sparked a strong reaction in the community, ranging from sarcasm to outrage.
“Just because you changed the name to Meta doesn’t mean you understood the value of Web3. The commission is 47.5%. I hate you, Facebook”, said TheGirlsTable co-founder and venture capitalist Ilana Dickman.
“I’d be surprised if someone read the document introducing a 45.7% fee on Facebook and said: yeah, looks good to me”, wrote Web3 developer lefkosp.eth.
A user nicknamed ThreadGuy.eth suggested Meta “negotiate with the IRS” regarding the levy rate.
“Because I don’t have that much after taxes”he added
Another community member noted that “everyone complains about OpenSea fees,” accompanying the message with a Zuckerberg meme.
Previously, former Meta employee Frances Haugen, who became a whistleblower, warned of the possibility of the company’s abuses being transferred to the created meta universe.