Meta Unveils Solution for Small Advertisers to Avoid Apple Fees
Meta Platforms Inc. has released guidelines for small businesses to avoid Apple fees by purchasing ads through a web browser. Apple's new policy requires advertisers to use In-App Purchase for boosting social media posts, resulting in a commission for Apple. The policy change has intensified the rivalry between Meta and Apple, with Meta accusing Apple of undercutting others in the digital economy.
In a bid to help small businesses navigate the fees imposed by Apple Inc., Meta Platforms Inc. has released new guidelines for advertisers on Facebook and Instagram. The social media giant is advising companies to purchase ads through a web browser instead of using the Facebook or Instagram iOS apps. This move is aimed at circumventing the Apple commission that is set to take effect this month.
Apple's new policy mandates advertisers to utilise its In-App Purchase feature when paying to "boost" social media posts, which increases their visibility. However, Apple takes a significant cut of up to 30% on app purchases made through its iOS software. As a result, Meta will lose a portion of its ad revenue to the iPhone maker.
The policy change, initially announced by Apple in 2022, has intensified the tension between the two tech giants, who have emerged as fierce rivals in Silicon Valley. Meta accused Apple of "undercutting others in the digital economy." Mark Zuckerberg, Meta's CEO, has also been vocal about Apple's excessive control over its App Store.
Apple defended its decision, stating that treating boosts as an In-App Purchase aligns with its longstanding approach to the App Store. The company claims to have engaged in over a year of discussions with Meta regarding the boosting policy, giving them ample time to comply.
Tim Cook, Apple's CEO, has been a vocal critic of Meta's privacy practices, as the company heavily relies on user data for targeted advertising. Previous changes implemented by Apple have already impacted Meta's revenue, with an estimated $10 billion loss in ad revenue in 2021 due to an iOS tweak that limited third-party data collection.
Apple's policies have faced broader criticism, with companies like Spotify Technology SA and Epic Games Inc., the maker of Fortnite, claiming that the App Store rules are unfair. While Apple has recently made changes to comply with new regional legislation in Europe, these modifications have also sparked further outcry.
The new policy will first take effect in the United States before being rolled out to other countries later this year. Advertisers will also be required to pay for ads upfront when purchasing them through an iOS app. This change will primarily impact Meta's smaller advertisers, some of whom rely solely on boosted posts for their advertising efforts, according to Meta.
Meta Platforms Inc. has released guidelines for small businesses to avoid Apple fees by purchasing ads through a web browser.
Apple's new policy requires advertisers to use In-App Purchase for boosting social media posts, resulting in a commission for Apple.
The policy change has intensified the rivalry between Meta and Apple, with Meta accusing Apple of undercutting others in the digital economy.
Source: YAHOO