Up to 30% of app purchases made through Apple’s iOS software are taken out by the company.

 

In an effort to assist small companies advertising on Facebook and Instagram in avoiding costs levied by Apple Inc., Meta Platforms Inc. has announced new recommendations.

 

According to guidelines posted on Thursday, Meta is recommending the companies to purchase advertisements using a web browser instead of on the Facebook or Instagram iOS apps. They will be able to dodge the Apple commission that Meta stated would be implemented this month thanks to it.

 

In order to increase the visibility of their material, advertisers are now required by Apple’s new policy to use the In-App Purchase function anytime they pay to “boost” social network posts. Apple takes a 30% share from app purchases made through its iOS software, thus Meta will lose some of its ad revenue to the manufacturer of iPhones.

 

The tech giants have been Silicon Valley’s main competitors in recent years, and the policy shift, which was initially proposed by Apple in 2022, has increased animosity between them. Meta charged the business with “undercutting others in the digital economy” at the time. Additionally, Apple’s CEO, Mark Zuckerberg, has regularly chastised the company for having excessive control over its App Store.

 

Apple stated on Thursday that handling boosts like an in-app purchase is in line with the way it has always handled the App Store. The business claimed that it had discussed the boosting policy with Meta for more than a year, giving them enough of time to comply.

 

“We have always required that purchases of digital goods and services within apps must use In-App Purchase,” Apple said in a statement. “Boosting, which allows an individual or organization to pay to increase the reach of a post or profile, is a digital service — so of course In-App Purchase is required. This has always been the case and there are many examples of apps that do it successfully.”

 

Tim Cook, the CEO of Apple, has openly criticized Meta’s privacy policies, saying that the company uses user data to sell advertisements. Previous Apple adjustments have resulted in financial hardship for Meta. An iOS update in 2021 that restricted third-party data harvesting cost Meta an estimated $10 billion in lost ad revenue.

 

Companies including Spotify Technology SA and Epic Games Inc., the creators of Fortnite, have voiced their disapproval of the iPhone maker’s restrictions, claiming that the App Store’s regulations are unjust. The business recently redesigned its strategy in Europe to adhere to new regional laws, but the adjustments have sparked even more criticism.

 

Later this year, Apple’s new policy will be implemented in additional nations after taking effect in the US. Additionally, when purchasing advertising through an iOS app, advertisers will now have to pay for them up front due to the change. According to Meta, the majority of the affected advertisers are smaller ones, some of which rely solely on boosted posts for their advertising.

 

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