Apple “undermines” meta and now charges commissions for social media ads
Apple has quietly changed the rules in its App Store. So-called social media boosts will therefore be considered in-app purchases in the future. This means that Apple can charge a commission of 30 percent for advertisements on Facebook, Instagram and Co.
According to Apple, paying for so-called social media boots will in future be considered an in-app purchase. For the first time, the US group is demanding a share of the advertising revenue within social media. The company charges a 30 percent commission on in-app purchases.
This means that Facebook, Twitter, Instagram and Co. will have to cede part of their income to Apple in the future. In particular, Facebook parent company Meta sharply criticized the new app store rules. A company spokesman said according to the news agency Bloombergthat Apple is “undermining other companies in the digital economy”.
Apple: Social media ads are now in-app purchases
The new guidelines in the App Store were only announced a few days ago. Meanwhile, Apple held back with an announcement. But other companies reacted promptly. For example, Meta explained in a statement:
Apple previously said it doesn’t take a share of developers’ ad revenue, and has now apparently changed its mind. We remain committed to providing small businesses with easy ways to advertise and grow their business on our apps.
The iPhone company countered, saying the new rules are based on existing guidelines in the App Store. Other providers would also already meet these requirements. In a statement, the company said:
For many years, App Store policies have been clear that the sale of digital goods and services within an app must be through in-app purchases. Boosting, where a person or company can pay to increase the reach of a post or profile, is a digital service – so an in-app purchase is obviously required.
Meta loses billions over new app tracking rules
If influencers advertise their posts via Instagram and Co. and pay to reach more people, Apple will in future demand a 30 percent share of the advertising revenue from social media companies. It is still unclear how they will deal with the new guidelines.
However, it would be possible for the platform operators to pass on some of the losses to the advertisers. Still, the new App Store rules are controversial. Critics complain that Apple is abusing its market power. The company previously changed its app tracking rules.
According to this, companies must explicitly ask their users for permission when they collect data. Since Meta in particular relies on such data in order to place advertising, the Facebook group lost massive revenue. The rules are estimated to cut the company’s sales by $10 billion this year alone.
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