Meta Platforms Inc., formerly known as Facebook Inc., has recently updated the guidelines for small businesses advertising on Facebook and Instagram. The objective of this initiative is to aid businesses in circumventing charges levied by Apple Inc.
Meta has communicated it will impose a 30% fee on advertisers who wish to enhance the visibility of their posts on the Facebook and Instagram iOS applications. This measure is designed to offset the transaction fee charged by Apple.
In order to steer clear of Apple's commission, Meta is advising businesses to buy ads via web browsers rather than using Facebook or Instagram's iOS apps. As per the guidelines, any advertiser who persists in boosting posts through iOS apps will be required to pay for campaigns in advance.
Apple categorizes boosted posts as in-app purchases and therefore imposes a 30% service fee on them. Meta, on the other hand, argues that these posts are in fact advertisements and should be exempted from the fee as they generate significant yearly revenue for the company from small businesses.
With its updated policy, Apple now requires social media posts to boost through its In-App Purchase function, which will result in a 30% charge. Failure to comply with Apple's rules could lead to the removal of boosted posts from Meta's applications. This could have serious implications for small businesses that rely on this tool for their marketing efforts.
The ongoing dispute between Meta Platforms and Apple extends beyond this recent update. In 2021, Apple implemented a series of privacy modifications to its mobile devices, which, according to Meta, could lead to a potential revenue loss of $10 billion in 2022. The dispute has further intensified in 2024 with Meta CEO Mark Zuckerberg publicly criticizing Apple's recent moves, such as permitting third-party app stores on its mobile devices to conform with European regulations.
