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Meta Platforms Inc. has announced new guidelines for small businesses advertising on Facebook and Instagram to help them avoid fees charged by Apple Inc.

According to guidance released Thursday, Meta advises companies to buy ads through web browsers rather than the Facebook or Instagram iOS apps. This will help Meta avoid the Apple commission, which he said will take effect this month.

Apple’s new policy requires advertisers to use in-app purchases whenever they pay to “enhance” their social media posts. This is to ensure that your content gets more exposure. Apple takes up to a 30% cut on app purchases from its iOS software. This means Meta will lose some of its advertising revenue to the iPhone maker.

The policy change, first announced by Apple in 2022, has heightened tensions between the two tech giants, who have become Silicon Valley’s biggest enemies in recent years. At the time, Mehta accused the company of “undermining other companies in the digital economy.” CEO Mark Zuckerberg has often criticized Apple for exercising too much control over the App Store.

Apple said Thursday that treating Boosts as in-app purchases is consistent with its long-standing approach to the App Store. The company said it spent over a year discussing its meta and boosting policy, giving it ample time to comply.

“We have always required that you use in-app purchases to purchase digital goods and services within apps,” Apple said in a statement. “Boosting, which allows individuals or organizations to pay to increase the reach of their posts or profiles, is a digital service and therefore naturally requires an in-app purchase. This has always been the case and there are many examples of apps that have done this successfully.”

Apple CEO Tim Cook has heavily criticized the privacy practices of Meta, which relies on user data to sell advertising. Previous Apple changes affected Meta. In 2021, Meta lost about $10 billion in advertising revenue due to iOS tweaks limiting third-party data collection.

The iPhone maker has faced broader criticism over the policy, with companies like Spotify Technology SA and Fortnite maker Epic Games Inc. saying the App Store rules are unfair. The company recently overhauled its approach in Europe to comply with new local laws, but the changes sparked further backlash.

Apple’s new policy will first go into effect in the United States and will roll out to other countries later this year. This change also requires advertisers to pay for ads upfront when purchasing ads through iOS apps. The change will have a major impact on Meta’s smaller advertisers, some of which use promoted posts as their only form of advertising, Mehta said.

© 2024 Bloomberg LP

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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