Alexander Lewis 
Feb 16, 2024
Meta has unveiled fresh guidelines tailored for small businesses advertising on Facebook and Instagram, aiming to navigate around the fees levied by Apple.
According to guidance unveiled on Thursday, Meta is suggesting that companies purchase ads via a web browser rather than through the Facebook or Instagram iOS apps. This strategy is intended to sidestep an Apple commission slated to take effect this month.
Apple's new directive mandates advertisers to use its In-App Purchase feature whenever they pay to "boost" social media posts, enhancing their exposure. Under this move, Apple claims a cut of up to 30% on app purchases within its iOS ecosystem, a move that would result in Meta losing a portion of its ad revenue to the iPhone giant.
The policy shift, initially announced by Apple in 2022, has escalated tensions between the tech giants, with Meta and Apple emerging as two of Silicon Valley's prominent adversaries in recent times. Meta had previously accused Apple of "undercutting others in the digital economy," with CEO Mark Zuckerberg routinely criticising Apple's dominance over its App Store.
Apple defended its stance on Thursday, asserting that treating boosts as an In-App Purchase aligns with its longstanding principles regarding the App Store. The tech titan stated that it had engaged in over a year of discussions with Meta regarding the boosting policy, affording them ample time to comply.
Apple CEO Tim Cook has been an outspoken critic of Meta's privacy practices, which hinge on user data for ad monetisation. Prior Apple alterations have dealt substantial blows to Meta's bottom line, with a 2021 iOS tweak restricting third-party data collection estimated to have cost Meta approximately $10 billion in ad revenue.
Beyond Meta, Apple's policies have sparked broader condemnation, with companies like Spotify and Epic Games, the creator of Fortnite, decrying the fairness of App Store regulations. While Apple has recently revamped its approach in Europe to adhere to new regional legislation, these changes have elicited further outcry.
The new Apple policy will initially take effect in the United States before rolling out to other countries later this year. The adjustment will also necessitate advertisers to make upfront payments when purchasing ads through an iOS app. This shift is poised to significantly impact Meta's smaller advertisers, some of whom rely solely on boosted posts for advertising, according to Meta.
