Apple and Facebook have been at odds for a long time now, with Apple requiring apps to ask users to opt in to cross-app advertising tracking. During the next few months, Facebook spoke out against Apple's plans and predicted revenue instability, but the feature was released in the spring of 2021. According to a new report from The Wall Street Journal, Facebook and Apple were working on a revenue sharing agreement.
An ad-free version of the platform was being considered by Apple and Facebook. It could have been a lot of money if Apple took a cut of in-app purchases.
Apple taking a cut of "boosted posts", which is essentially paying to put a post in front of a larger audience, was one of the points of contention. According to the Journal, small businesses often use boosted posts to reach more people on Facebook. Apple said that boost should be considered in-app purchases, which would result in a 30 percent revenue cut. Facebook maintained that those were not subject to Apple's cut.
Insider Intelligence claims that 37 percent of iPhone users have opted in to allowing companies to track their activity. Last quarter, Meta reported the first revenue decline in the company's history, because of the change.
We are a long way off from these talks. Meta is trying to make the Metaverse a thing and Apple is trying to position itself as a defender of privacy. Meta's only notable way of making revenue is through advertising, so the company will have to adapt to a world in which most users take advantage of app tracking protection
All Rights Reserved © 2024
