Meta Platforms has released new guidelines for small businesses that advertise on Facebook and Instagram to help them circumvent fees imposed by Apple. Meta advises companies to buy ads through a web browser rather than within the iOS apps of Facebook or Instagram, according to guidance released today. This will help them avoid Apple’s commission, which Meta claims will take effect this month.
Apple’s new policy requires advertisers to make an in-app purchase every time they pay to “boost” social media posts, a move that gives them more exposure. Apple takes as much as 30% of revenue from in-app purchases into its iOS software, meaning Meta will lose a chat of its ad revenue to the iPhone maker.
The policy change was announced by Apple back in 2022. The move has inflamed tensions between the tech giants, which have become two of Silicon Valley’s biggest rivals in recent years. At the time, Meta accused the company of “undercutting others in the digital economy”. The CEO Mark Zuckerberg has also often criticized Apple for having too much control over the App Store.
Apple CEO Tim Cook, meanwhile, has been an outspoken critic of the privacy practices of Meta, which relies on user data to sell ads. Apple’s previous changes affected Meta financially. In 2021, an iOS setting that restricted third-party data collection resulted in nearly 10 billion USD in lost ad revenue for Meta.
The iPhone maker has been criticized for its policies, and companies like Spotify Technology and Epic Games (the developer of Fortnite) have said the App Store’s rules aren’t fair. The company recently revised its approach in Europe to comply with new regional legislation, although these changes have caused further resentment.
Apple’s new policy goes into effect in the US first before rolling out to other countries later this year. The change will require advertisers to pay upfront for ads when they buy them through an iOS app. The change will largely affect smaller Meta advertisers, some of whom use boosted posts as their only form of advertising, the company says.
