Home » Technology » Facebook and Instagram boosts now need to cut Apple; Meta calls it a tax

Facebook and Instagram boosts now need to cut Apple; Meta calls it a tax

Facebook and Instagram boosts are a popular way for creators to give their posts an extra reach by paying Meta to show them to more people. Apple updated the App Store rules to state that all boosts purchased through iOS apps must use in-app purchases (IAP), offering the iPhone maker a 30% discount.

Meta called it Apple’s tax on advertising and claims the Cupertino company is growing its advertising business while undermining competitors …

Explanation of Facebook and Instagram boosts

Businesses looking to advertise on Facebook and Instagram can purchase paid ads, but Meta offers a second option, often used by creators who want to reach a wider audience: boosted posts.

Posts are created in the usual way, so creators pay a commission to “boost” them, indicating that they will be shown to more people. If people are exposed to featured posts like them or are following the creator, it can be a way to grow your audience.

Apple now wants a 30% discount.

Until now, Facebook and Instagram boosts could be purchased through their respective iOS apps, paying for Meta directly. But The edge noted that Apple has now quietly changed its rules on the App Store, to require the purchase of boosts via IAP, indicating that the iPhone maker is getting a 30% discount.

The new wording refers specifically to boosters:

Digital purchases for content experienced or consumed within an app, including the purchase of advertisements to be displayed within the app itself (such as “boost” sales for posts within an app social media), must use in-app purchase.

Currently, the wording makes it clear that apps used specifically to book and manage advertising campaigns, such as Meta’s ad management app, are not affected, as those apps do not display ads in the same app.

You don’t need to use in-app purchase. These apps are intended for campaign management purposes and do not show the advertisements themselves.

The new policy cancels Phil Schiller’s statement

Meta points out that this represents a reversal of a policy referred to by Phil Schiller.

Last May, during Epic’s antitrust lawsuit against Apple, App Store chief Phil Schiller said the company never took ad revenue for iOS developers. In the future this will no longer be true […]

Company spokesman Tom Channick sent The edge the following statement: “Apple continues to evolve its policies to grow its business while undermining others in the digital economy. Apple previously stated that it does not take a share of the ad revenue from developers and has now apparently changed its mind. We stay engaged. to provide easy ways for small businesses to advertise and grow their business on our apps. “

The social media company obviously says it cares about small businesses, not their own revenue, a stance it also took when attacking the transparency of app tracking.

Apple says nothing has changed

Apple has released a statement saying that nothing has changed – the policy has always been in place. The statement implies that the rule has simply not been applied and that the new wording is a clarification rather than a modification of the rule.

“For many years now, the App Store guidelines have made it clear that selling digital goods and services within an app must use in-app purchase,” Ajemian said in the statement. “Boost, which allows an individual or organization to pay to increase the reach of a post or profile, is a digital service, so obviously in-app purchase is required. It has always been that way and there are. many examples of apps that do this successfully.

The controversy follows Apple showing additional search ads in the App Store, even when you’re not looking for an app.

Photo: Gabrielle Henderson / Unsplash


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