Meta, the parent company of Facebook and Instagram, has announced that it will be passing on Apple’s 30% service charge to advertisers who pay to boost posts on its platforms. This move comes as a response to Apple’s in-app purchase fees and is expected to impact thousands of small business advertisers on iOS.
Key Takeaway
Meta’s decision to pass on Apple’s 30% service charge to advertisers for boosting posts on Facebook and Instagram reflects the ongoing battle between tech giants over in-app purchase fees and control of the app economy.
Adapting to Apple’s Guidelines
Meta had previously avoided Apple’s rules by offering the pay-to-boost option without passing on the additional charge to its customers. However, in order to comply with Apple’s guidelines, Meta has decided to implement the 30% fee for in-app purchases on iOS. This means that advertisers who choose to boost posts on Facebook or Instagram through the iOS app will now be billed through Apple, incurring the additional charge.
Impact on Advertisers
Advertisers have the option to avoid the upcharge by paying to boost posts from the web on Facebook.com or Instagram.com. However, Meta acknowledges that in-app purchases are the preferred method for many customers, and the added cost may not be well-received. As a result, advertisers using in-app purchases will now have to pay more for the privilege, affecting their advertising budgets.
Broader Implications
Meta’s decision to pass on Apple’s 30% charge is part of its broader efforts to challenge Apple’s control over the iOS app economy. By raising the price for boosts on iOS, Meta aims to generate outrage and rally support from other companies that are also seeking changes in how Apple conducts its business. The move is expected to impact not only advertisers but also the overall dynamics of the app ecosystem.
