Meta to charge nearly 50% commission on metaverse sales

Meta, the parent company of Facebook, intends to charge a 47.5% commission on sales of digital goods in the Horizon Worlds metaverse, CNBC reports, citing a company spokesperson.

The fee structure comprises a 30% cut in favour of the Meta Quest Store, the app store for VR headsets, and a 17.5% commission for Horizon Worlds.

On April 11 the corporation announced that it had opened for some users the ability to create and sell virtual items in Horizon Worlds, including NFTs. The fee amount was not specified in the announcement.

The largest NFT marketplace by trading volume, OpenSea, takes 2.5% per transaction, while its competitor LooksRare charges 2%.

Apple takes a 30% cut on sales via the App Store. Meta CEO Mark Zuckerberg and other executives have previously criticised the company for the high fees.

In November 2021, Zuckerberg said the company aimed to help creators sidestep the high App Store fee.

“As we build the metaverse, we are focused on giving creators the opportunity to earn from their work. Apple’s 30% transaction fee makes this difficult, so we are updating our subscription product to enable authors to earn more,” he said.

Meta’s stated fee rate was higher than Apple’s, but Horizon vice president Vivek Sharma told The Verge that it was “quite competitive in the market.”

The size of the Horizon Worlds fee provoked a furor in the community—from sarcasm to outrage.

Just because you changed your name to Meta doesn’t mean you understand the value of Web3.

47.5% Creator Fees👀

I hate you Facebook.

— TradingFemale.nft (@TradingFemale) April 13, 2022

“Just because you changed your name to Meta does not mean you understand the value of Web3. The commission is 47.5%. I hate you, Facebook,” said Ilana Dikman, co-founder of TheGirlsTable and a venture investor.

I wonder who read the document to approve the 45.7% royalty fees on Facebook and said:

«yeap, looks good to me»

— lefkosp.eth (@0xLefy) April 13, 2022

“I’d be surprised if anyone read the document proposing a 45.7% fee on Facebook and said: yes, that looks good to me,” wrote Web3 developer lefkosp.eth.

A user going by ThreadGuy.eth suggested Meta “talk to the IRS” about the fee rate.

If Meta wants 47.5% of NFT sales they gotta talk to the IRS because I don’t even have that after taxes 😭

— ThreadGuy.eth 👑 (@notthreadguy) April 13, 2022

“Because I don’t have that after taxes,” he added.

Another community member noted that “everyone complains about OpenSea fees,” accompanying the post with a meme featuring Zuckerberg.

Everyone complaining about Open Sea fees. Facebook: pic.twitter.com/BKhUCDRvr1

— Carl (@Carl_m101) April 12, 2022

Earlier, former Meta employee and whistleblower Frances Haugen warned of the possibility that the company’s abuses could spill into the metaverse.