- Apple will apply fees to advertisers who purchase ads in-app on iOS
- This includes ads on Facebook and Instagram, so Meta is pointing advertisers to desktop
In a move set to significantly impact advertising costs on iOS devices, Apple is extending its infamous 30% fee from today, July 1st.
This extension means that Apple will apply fees to advertisers who purchase ads on Facebook and Instagram apps on iOS, similar to the “Apple tax” imposed on mobile games when players spend in-app.
The shift was first introduced this February in the US and rolls out globally today, despite concerns raised by marketers and developers.
Au revoir, apps!
Akin to mobile game makers pointing players to web shops, companies like Meta are already directing potential advertisers away from apps to dodge Apple’s 30% fee. By purchasing ads on the desktop versions of its social media platforms – meaning facebook.com and instagram.com – Apple’s latest fees should not apply as they do on the Facebook and Instagram apps.
Ultimately, this means costs to advertisers on desktop should remain unchanged.
“Now, when businesses use the Facebook or Instagram app on their iPhone or iPad to boost a post, they’ll have to pay a 30% additional fee that goes to Apple. This fee isn’t charged by Meta, but by Apple due to their in-app payment rules,” Meta director of privacy and fairness policy Pedro Pavón posted on LinkedIn.
“It’s clear to me that Apple is creating a highly-controlled system that limits user choices, increases costs for users and app developers, and reduces competition for Apple. The 30% Apple tax gives them an unfair advantage over competitors, making it harder for them to compete on pricing. None of this strikes me as a good outcome for users or fair dealing with competitors.”
Facebook has also provided potential advertisers with more information about “boosted posts” and avoiding Apple’s 30% fee, stating clearly that this is imposed “by Apple, not Meta“.
Apple‘s fees and anti-competitive practices continue to get the company in trouble with the EU, as the DMA is officially biting back at the tech giant’s lack of adherence.
