Meta criticizes Apple for charging App Store tax on ads

Meta is again upset with Apple because of its new App Store Review Guidelines for advertising management apps like Facebook. Meta accuses the tech giant’s new rules are designed to grow its own business.

Following the release of iOS 16.1, iPadOS 16.1, and other software updates, Apple also released new App Store Review Guidelines for iOS and iPadOS developers this week. The new guidelines related to advertisements mandate developers to run ads that are appropriate to their apps’ age ratings and only visible in the main app.

Facebook

Furthermore, the apps that allow advertisers to purchase and manage advertising campaigns are not required to use in-app purchases but the apps that “boost” or manage ad campaigns and do not display ads themselves have to use in-app purchases.

As the latter change impacts Meta because social media apps like Facebook and Instagram charge businesses a fee to run their ad campaigns on the platforms. Now, those platforms are subjected to paying 15%-30% App Store commission for in-app purchases.

Apple to earn a cut from apps’ ad revenues under new App Store rules

Prior to the new changes in App Store Review Guidelines, apps that boosted posts did not use Apple’s in-app purchase system. In a statement to The Verge, Meta’s spokesperson Tom Channick said:

“Apple continues to evolve its policies to grow their own business while undercutting others in the digital economy. Apple previously said it didn’t take a share of developer advertising revenue, and now apparently changed its mind. We remain committed to offering small businesses simple ways to run ads and grow their businesses on our apps.”

Apple

In addition to Meta-owned social media apps, the new rules apply to TikTok, Twitter, Snapchat, and all apps which run ad campaigns.

On the other hand, Apple defended its new rule by saying that it has always charged a commission for digital goods and services sold via App Store. The company’s spokesperson Peter Ajemian said that the service to boost organizations or individuals is a digital service subjected to the in-app purchase system.

“For many years now, the App Store guidelines have been clear that the sale of digital goods and services within an app must use In-App Purchase,” Ajemian said in the statement. “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 In-App Purchase is required. This has always been the case and there are many examples of apps that do it successfully.”

Meta is already very critical of Apple’s ATT feature which has led to a significant drop in its ad revenue.

About the Author

Addicted to social media and in love with iPhone, started blogging as a hobby. And now it's my passion for every day is a new learning experience. Hopefully, manufacturers will continue to use innovative solutions and we will keep on letting you know about them.

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