Meta is looking to capitalize on advertiser anger in its battle with Apple over in-app purchase fees by announcing it will soon pass on 30% of Apple's service fees to customers. In an announcement, the social networking giant said that starting later this month, advertisers who wish to pay to promote their posts on Facebook or Instagram's iOS apps will be billed through Apple, and this additional fee will be collected. explained.
Meta is apparently circumventing Apple's rules with its paid boost option, as the company says you are now required to either “follow Apple's guidelines or remove boosted posts from your app.” It seems like it was. They obviously don't want the latter, so they're simply increasing the cost of in-app purchases so that the impact on their own bottom line remains intact.
Advertisers can avoid additional fees by paying for more posts from the web on Facebook.com or Instagram.com that work on both desktop and mobile browsers. But Meta understands that customers don't find this convenient. In-app purchases are the easiest way to transact on Apple devices. So those who choose in-app purchases will have to pay more for that benefit.
The company is likely hoping that raising the price of iOS Boost will generate anger and help broader efforts to break Apple's stranglehold on the iOS app economy. Meta, like other big tech companies like Epic Games, Spotify, and Match, wants to offer its own payment system in its apps and not have to use Apple's in-app purchases, and its As a result, in-app purchases are subject to a 30% handling fee. The company is among the companies pushing lawmakers and regulators to change the way Apple operates. Shifting his 30% share of Apple's burden to his thousands of small business advertisers on iOS may gain a few more allies in the war with Apple.
Additionally, Apple's move to in-app purchases means advertisers must pay upfront, rather than after a boosted post has been published, as was previously the case. To do so, Mehta explains that you will need to add up-front funds to your account to withdraw the boost, for which he will incur a 30% fee. However, there are no fees involved when you add funds to your account from the web.
The changes will first apply to Meta apps in the US, but will roll out to other markets later this year.
Meta and Apple are at odds as Apple expands its advertising business, putting pressure on Meta's profits. With the launch of App Tracking Transparency, which allows consumers to opt out of app tracking, Meta lost advertising market share as Apple grew. The company has also long argued that Apple's ATT would reduce its advertising revenue, and warned investors that “headwinds” from ATT would impact its ability to monetize advertising. Meta has since recovered from the impact of ATT, tripled its profits in the fourth quarter, and just announced its first dividend.
The social networking giant was also among those criticizing Apple for its compliance with the EU's new Digital Markets Act, with CEO Mark Zuckerberg warning investors that Apple DMA rules are “very onerous” and he doubts developers will opt-in.