Meta introduces a new method for small advertisers to bypass Apple’s fees on Facebook and Instagram.
Meta Platforms Inc. has unveiled fresh guidelines for small businesses advertising on Facebook and Instagram, with the intention of assisting them in circumventing the fees imposed by Apple Inc.
According to the guidelines published on Thursday, Meta advises companies to buy ads through a web browser instead of Facebook or Instagram’s iOS applications. This will help them avoid Apple’s commission, which Meta says will take effect this month.
Apple’s new policy requires advertisers to make in-app purchases whenever they pay to “boost” social media posts — a move that gives them more exposure. Apple takes a cut of up to 30% of in-app purchases on its iOS software, which means Meta loses some of its advertising revenue to the iPhone maker.
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Apple first announced the policy change in 2022. The move heightened tensions between the tech giants, which have become two of Silicon Valley’s biggest rivals in recent years. At the time, Meta accused the company of “undercutting others in the digital economy.” CEO Mark Zuckerberg has also often criticized Apple for having too much control over its App Store.
Apple CEO Tim Cook, meanwhile, has been a vocal detractor of Meta’s privacy practices, as Meta relies on user data to sell ads. Previous Apple changes have hit Meta’s pocket book. In 2021, an iOS tweak that limited third-party data collection resulted in Meta losing an estimated $10 billion in ad revenue.
The iPhone maker has come under wider criticism for its policy, with companies including Spotify Technology SA and Fortnite maker Epic Games Inc. saying the App Store’s rules are unfair. The company recently revamped its approach in Europe to comply with new regional legislation, though the changes have added to the uproar.
Apple’s new policy will take effect in the United States first, before rolling out to other countries later this year. The change also requires advertisers to pay for ads in advance when purchasing them through the iOS app. The change largely affects Meta’s smaller advertisers, some of whom use boosted posts as their only form of advertising, Meta said.
