Feb 16, 2024

Meta Encourages Advertisers to Ditch iPhone in Latest Spat With Apple

Meta, the parent company of Facebook, has advised advertisers on a strategy to bypass a 30% service fee imposed by Apple. This fee applies to "boosted posts," a significant revenue source for Meta, particularly from small businesses. In response to a rule change by Apple in late 2022, Meta will soon implement a 30% surcharge […] 
 Feb 16, 2024

Meta Encourages Advertisers to Ditch iPhone in Latest Spat With Apple

Meta, the parent company of Facebook, has advised advertisers on a strategy to bypass a 30% service fee imposed by Apple. This fee applies to "boosted posts," a significant revenue source for Meta, particularly from small businesses. In response to a rule change by Apple in late 2022, Meta will soon implement a 30% surcharge for U.S. advertisers using boosted posts through iPhone and iPad apps, directing this additional cost to Apple. To avoid the fee, Meta is guiding advertisers to purchase boosted posts via Facebook and Instagram websites on computers or mobile web browsers.

Apple maintains that its app store guidelines, including the service charge, apply uniformly to all developers. The tech giant has engaged with Meta for over a year to ensure compliance with this rule change. Meta's workaround involves encouraging advertisers to prepay for campaigns via its websites, thereby avoiding the Apple service fee for boosted posts within Facebook and Instagram iOS apps.

This development is part of the ongoing conflict between Meta and Apple, which intensified in 2021 with Apple's privacy changes, costing Meta an estimated $10 billion in revenue. The dispute has resurfaced in 2024, with Meta CEO Mark Zuckerberg critiquing Apple's plan to open its mobile devices to third-party app stores, a move intended to comply with European legislation. Additionally, Zuckerberg has publicly favored Meta's Quest 3 headset over Apple's new Vision Pro, citing better value and user experience despite the Vision Pro's higher price and brand reputation.

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