Apple’s new App Store rules over ‘boosted ads’ provoke Facebook again

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  • Apple recently updated its App Store guidelines with changes that again affect Facebook’s advertising business.
  • The new rule says that companies like Meta can offer apps that allow people to buy and manage ad campaigns in a dedicated app without using Apple’s payment system, but it can’t convert buying an ad in a social media app to a digital one. Assess the purchase, from which Apple takes a 30% deduction.

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Apple It recently updated its App Store guidelines with changes that again affect Facebook’s advertising business.

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New rule introduced on Monday says companies prefer metaFacebook and Instagram, which owns Facebook and Instagram, may offer apps that allow people to buy and manage ad campaigns in dedicated apps without using Apple’s payment system, but it doesn’t make buying an ad in a social media app an option. Assumes digital purchases, giving Apple a 30% cut.

Meta was not happy with the change. “Apple continues to develop its policies to grow its own business while underpinning others in the digital economy,” a spokesperson for Meta told CNBC.

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The episode is the latest flurry from companies like Meta that feel that Apple has too much power over mobile distribution and the ever-expanding and changing rules of Apple’s App Store, which is the only way to install apps on the iPhone.

Meta and Apple have battled for years, but the rivalry has heated up more recently after Apple introduced app tracking transparency to the iPhone operating system last year. The privacy feature allows users to refuse to provide a unique device ID to app developers like Meta that can be used to track ad performance. Meta says the change could cost $10 billion this year.

Meta and Apple also appear poised to compete in the consumer hardware world, after Meta released the Quest Pro headset and Apple has been developing a competing VR headset for years that could reportedly launch next year.

Apple told CNBC that even before the new guideline, the company considered Social Boost to be the kind of digital purchase required to use Apple in-app purchases, and that the rule is more an explanation than a new restriction.

“For several years now, App Store guidelines have been clear that sales of digital goods and services within apps must use in-app purchases,” an Apple spokesperson told CNBC. “Boosting, which allows an individual or organization to pay to increase the reach of a post or profile, is a digital service – so of course there is a need for in-app purchases. This has always been the case and many such There are examples which apps do this successfully.”

This personal ban has long been a moot point, and Meta, when it was still renamed Facebook, negotiated with Apple over social media boosts and whether they fall under Apple’s digital purchase rules, according to wall street journal,

Boosting features are offered by many social media companies. But most, like TwitterThe Boosted post lists for $9.99 on Apple’s App Store, which already use Apple’s in-app purchase mechanism. TikTok also sells coins, or the currency used to promote posts, through in-app purchases.

As for Meta, it thinks Apple’s recent clarification crosses a line in taking a slice of ad revenue, not just app sales. The meta points to previous Apple executive statements, some made as part of Epic Games’ testing on App Store rules, where it said it did not cut ads.

A Meta spokesperson told CNBC, “Apple previously stated that it did not share a share of developer ad revenue, and has now apparently changed its mind. We encourage small businesses to run ads and grow their business on their apps.” Committed to.”

Apple isn’t asking for cuts in every ad served through the Facebook or Instagram apps. But Meta clearly feels targeted by Apple’s growing power on its platforms, and worries that the company may argue it deserves a slice of Meta’s total ad sales through its Ads Manager app. , according to The VergeWho first reported the complaint to Meta.

It’s not clear how big the boost market is. Most of the big advertisers use dedicated portals or apps to buy ads. Eric Seifert, ad industry watcher and founder of Mobile Dev Memo, written monday That they suspect is a “negligible proportion of revenue” for social media companies.

Credit: www.cnbc.com /

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