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Facebook revises virtual money terms after antitrust complaint

Friday 8 July 2011 13:46 CET | News

Social networking website Facebook has revised the terms for the game developers using its Facebook Credits following an antitrust complaint to the Federal Trade Commission mentioning that the company has imposed all game developers to exclusively use Facebook’s virtual currency. Facebook charges game developers with 30 percent when they use Credits to sell virtual goods and other items.

As a result, Facebook’s revised terms stipulate that a developer is now able to offer price competition on other platforms as long as the player is not logged into Facebook. The old policy prevented game developers from offering lower prices for virtual goods when they used a different platform for a game than Facebook such as My Space, Yahoo or their own website. Nevertheless, Facebook still requires developers to use Facebook Credits exclusively to sell virtual goods in their games and to pay a 30 percent fee for redeeming credits so they can be paid.

Until 1 July 2011, game developers have carried out payments for their games virtual goods directly using such methods as PayPal or credit cards. Facebook has changed this rule beginning with 4 July 2011.

The virtual goods market is expected to produce revenue of USD 2.1 billion in 2011, up from USD 1.6 billion as compared to the prior year, according to Consumer Watchdog, a non-profit consumer education and advocacy organization. The social network controls over 50 percent of the market for virtual goods offered in social gaming, according to the organization.


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Keywords: Facebook, Credits after antitrust complaint
Categories: Payments & Commerce
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Countries: World
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