Meta Platforms Provides Workaround for Apple's App Store Charges on Small Firms

  • Mary Brown
  • Feb-17-2024
  • 56
Meta Platforms Provides Workaround for Apple's App Store Charges on Small Firms

In a recent development, Meta Platforms Inc. highlighted alternative methods for small businesses to sidestep charges levied by Apple Inc. on their advertisements on Facebook and Instagram. Meta is suggesting these businesses purchase ad space via web browsers and not through Facebook or Instagram apps for iOS, according to recently released guidelines. This approach can help businesses evade the Apple commission, which, according to Meta could start affecting them this month.

Apple's latest policy compels advertisers to utilize their In-App Purchase function whenever they pay for "boosting" their social media content for greater visibility. Apple charges up to a hefty 30% on in-app purchases within its iOS software. This means that Meta stands to lose a considerable chunk of its advertising revenue to Apple.

This policy shift, initially declared by Apple in 2022, has heightened the tension between the two tech behemoths, infamous for their feuds in recent years within the Silicon Valley. Meta has previously called out Apple for trying to gain an unfair edge in the digital economy. Further, CEO Mark Zuckerberg often criticizes Apple for exerting an excessive amount of control over its App Store.

Apple has defended its decision, stating that their boosting policy has been under discussion with Meta for over a year, providing enough time for compliance. It also stated in-app purchases have always been a requirement for purchasing digital goods and services and boosting, a digital service, is no exception.

The new policy is scheduled to roll out first in the USA, with an international launch to follow later in the year. This policy will affect Meta in particular, as some of its smaller advertisers rely solely on boosted posts. It also means that advertisers will have to pay upfront for ads purchased through an iOS app.

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