On October 25, Apple quietly updated its rules in the App Store, requiring iOS developers who use the in-app shopping feature to share Apple 30% of the "sales turnover" of posts running ads in a social media application.
This mainly affects Facebook and Instagram, platforms that allow users to pay to increase access to their posts. This is the first time Apple has directly taxed in-app advertising.
Of course, Meta was unhappy with the company's move. Metay spokesperson Tom Channick sent The Verge a statement as follows: Apple continues to make policies to develop its own business while taking commissions from other companies in the digital economy.
Apple has previously said it does not take a portion of the developer's advertising revenue, and now it appears to have changed its mind. We are still committed to providing small businesses with simple ways to run ads and develop their businesses on our application.
Paying to increase post coverage (Boost) is a popular feature not only available on Meta's apps but also active on other social apps such as Twitter and TikTok.
The difference between Facebook and Instagram is that they do not currently use Apple's "In-app" payment system for this feature. Meanwhile, Twitter, TikTok and other social networks do.
In May last year, in Epic's antitrust lawsuit against Apple, App Store leader Phil Schiller certified that the company had never taken a portion of the iOS developer's advertising revenue. But it seems that this has changed.
According to some sources inside Meta, the new policy will not have a significant impact on the company's revenue. But it raises concerns that Apple will eventually require the same rule for Meta's independent ad manager app.
In a statement to The Verge, Apple spokesperson Peter Ajemian downplayed the importance of introducing the new rule, saying that the App Store has long deducted revenue from digital goods and services.
Over the years, the principles of the App Store have clearly demonstrated that selling digital goods and services in an application must use an In-app Buying system.
The Boost feature allows an individual or organization to pay to increase the reach of a post or profile, which is a digital service - so of course the fee must be calculated using the "In-app purchase" process. This always happens and there are many examples of apps that do it successfully, added Peter Ajemian.
By getting into the process of promoting social media posts and deducting 30% of the fee, Apple is reducing the effectiveness of advertising spending for small businesses and influencers, said Eric Seufert, a prominent advertising analyst.
