Apple’s Meta Slam on its latest advertising policy, says iPhone maker ‘undercuts others’ in digital economy

Meta criticized Apple for changing the terms of its App Store to take a slice of the social media advertising revenue, saying the iPhone maker had “degraded others in the digital economy.” . The policy change, unveiled this week, requires users and advertisers to make in-app purchases when they pay to “promote” posts in apps like Meta’s TikTok and Instagram. Apple takes commissions of up to 30% on in-app purchases, which means a company like Meta would lose a portion of ad revenue to the iPhone maker.

“Apple previously said that they don’t take a share of the developer’s ad revenue, and now appear to have changed their mind,” Metaalso own Facebook and WhatsApp, said in a statement Tuesday. “We remain committed to providing small businesses with simple ways to run ads and grow their businesses on our app.”

Apple, which is building its own ad business, says that asking for in-app purchases to raise prices is just an extension of its existing policies – and other apps have follow.

“For many years now, App Store The company said in a statement there were clear guidelines that selling digital goods and services within an app must use in-app purchases. “Promotion, which allows an individual or organization to pay to increase the reach of a post or profile, is a digital service – so, of course, in-app purchases are required. This happens all the time and there are plenty of examples of apps that do it successfully. “

Other social media companies have the option to boost posts, including TikTok and Twitteralso did not immediately respond to requests for comment.

According to Apple policy, apps whose sole purpose is to enable marketers to purchase ads and manage campaigns across different media – such as television and billboards, in addition to apps – no cuts required for Apple. But “digital purchases of content experienced or used within an app, including the purchase of ads to display within the same app (such as selling “enhances” for posts) in-app social media) must use in-app purchases,” the company said.

For example, if an influencer pays Instagram To promote individual posts to more viewers through the iPhone app, Apple will cut back, under new rules. The social media companies have yet to say how they will comply with the change.

Social media companies are reeling from the impact of recent privacy changes to Apple’s iOS software, which require companies to explicitly ask users for permission to collect data whether about them. Meta, which relies on such data for better ad targeting, has said that this change will cut $10 billion (about Rs 82,000) from this year’s revenue.

However, the policy of increasing revenue may be the first time Apple has directly cut advertising revenue. Apple has previously touted advertising as an area where it allows developers to earn as much revenue as they want from their customers.

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