I thought the relationship between Apple and Meta wouldn't get any worse.
On Monday, Apple quietly updated its App Store rules to require that developers use in-app purchases in order to give Apple 30 percent of their sales. People can pay to increase the reach of their posts on social media. It is the first time Apple has taxed advertising in an app.
Meta is unhappy. Apple continues to evolve its policies to grow their own business while undercutting others in the digital economy, according to a company spokesman. Apple used to say it didn't take a share of developer advertising revenue. We want to make it easy for small businesses to grow their businesses on our apps.
While undercutting others in the digital economy, Apple continues to evolve its policies.
Paying to boost posts is a feature that is found in many social apps. While other apps use Apple's in-app purchase system for boosting posts, Facebook andInstagram don't. I am told that Apple pressured Facebook to start using the App Store to route boosted post payments. You can read more about that at The Wall Street Journal
Meta is correct in saying that this policy is an about-face from Apple. The boss of the App Store testified during the trial that the company never took a cut of developer ad revenue. That won't be true in the future.
The company's revenue shouldn't be affected by the new policy. There is concern that Apple will eventually require the same rule for Meta's ad manager app. The app is exempt from having to use in-app purchases for boost because the ads that are bought aren't displayed in the app itself.
Peter Ajemian said that the App Store has taken a cut of digital goods and services.
The sale of digital goods and services within an app must use in-app purchase according to the guidelines of the App Store. In-app purchase is required for boosting, which allows an individual or organization to pay to increase the reach of a post or profile. There are many examples of successful applications that do it.
It doesn't explain why Apple needed to update its policy.
Apple's newest squeeze won't affect Meta's biggest advertisers. Eric Seufert, a respected ad industry analyst, said that it will be the individuals who buy one-off boost that will be affected the most since they will have to pay more. Apple is reducing the effectiveness of advertising spend for small businesses by adding itself to the social media post boosting process.
It is hard to see Apple's policy as anything other than an attack on Meta, which has lost over $10 billion in ad revenue due to the iPhone's ad tracking Apple is growing its own ads business rapidly and is sticking ads in more parts of its platform.
Apple is going to be competing with Meta in virtual reality headsets.
It was added by Apple.
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