CUPERTINO (dpa-AFX) - Meta Platforms Inc. (META) has issued updated guidelines for small businesses advertising on Facebook and Instagram, which aims to assist businesses in avoiding fees imposed by Apple Inc. (AAPL).
Meta announced that a 30% fee will be charged when advertisers boost the visibility of their posts in Facebook's and Instagram's iOS apps to cover Apple's transaction fee.
To avoid the Apple commission, Meta advises companies to purchase ads through web browsers instead of Facebook or Instagram iOS apps, as advertisers continuing to boost posts via iOS apps will need to prepay for campaigns.
Boosted posts, classified as in-app purchases by Apple, incur a 30% service charge. Meta contends that boosted posts are ads and should be exempt from this fee, as these posts contribute substantial annual revenue to Meta from small businesses.
Apple's updated policy mandates the use of its In-App Purchase function for boosting social media posts, leading to a 30% charge. Non-compliance with Apple's regulations could result in the removal of boosted posts from Meta's apps, affecting small businesses that depend on this tool for marketing.
The dispute between Meta Platforms and Apple goes beyond boosted posts. In 2021, Apple introduced privacy changes to its mobile devices, which Meta predicted would cause a revenue loss of $10 billion in 2022. Tensions have escalated in 2024, as Meta CEO Mark Zuckerberg has openly criticized Apple's recent actions, such as allowing third-party app stores on mobile devices to adhere to European regulations.
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