Explained: Why Apple’s latest move will not go down well with these social media users – Times of India
Earlier this year, Meta (formerly known as Facebook) during its quarterly results earnings call revealed that it had lost $10 billion because of Apple’s strict app tracking transparency feature. If you thought that was bad then there could be worse in store for Meta and its family of apps. Apple tweaked its developer guidelines for the App Store and that could mean trouble for a lot of apps, including Facebook, Instagram and others.
What is the change that Apple has made?
Apple made an alteration to one if its App Store Developer Guidelines. Apple has made it mandatory for iOS developers — ones who use in-app purchases — to give Apple 30% ‘promoted’ posts. “Digital purchases for content that is experienced or consumed in an app, including buying advertisements to display in the same app (such as sales of “boosts” for posts in a social media app) must use in-app purchase.”
How does it affect Meta’s family of apps?
Now, here’s where Facebook, Instagram come in the picture. You see those “promoted” posts on these platforms? Developers will have to pay Apple ‘tax’ for advertising on their iOS apps. If you’re wondering what is Apple tax then simply put: most app developers have to pay Apple a commission which Apple charges for using its in-app payment system. Before the change in guidelines, Apple never charged this on in-app advertising. So in a sense a lot of the so-called big advertisers will not feel the hurt. But its the individuals — the so-called influencers —and relatively small players that will feel the pinch. These are users who use the “boost” post feature rather infrequently and now when they do, they end up losing 30% as it goes to Apple. So in a sense they might just stop promoting those posts as it does affect them and in turn Facebook and Instagram. For the record, Meta’s family of apps don’t really use App Store’s in-app purchases system but the likes of Twitter, TikTok and other apps do.
What does Meta and Apple have to say about it?
As expected, Meta isn’ too happy. The two companies rarely see eye to eye on many things. A Meta spokesperson told The Verge that Apple earlier didn’t want to take share of developers’ ad revenue but changed its mind. “Apple continues to evolve its policies to grow their own business while undercutting others in the digital economy.
Apple, on the other hand, feels that this is nothing out of the ordinary. An Apple spokesperson told The Verge in a statement, “For many years now, the App Store guidelines have been clear that the sale of digital goods and services within an app must use In-App Purchase. Boosting, which allows an individual or organisation to pay to increase the reach of a post or profile, is a digital service — so of course In-App Purchase is required. This has always been the case and there are many examples of apps that do it successfully.”
What is the change that Apple has made?
Apple made an alteration to one if its App Store Developer Guidelines. Apple has made it mandatory for iOS developers — ones who use in-app purchases — to give Apple 30% ‘promoted’ posts. “Digital purchases for content that is experienced or consumed in an app, including buying advertisements to display in the same app (such as sales of “boosts” for posts in a social media app) must use in-app purchase.”
How does it affect Meta’s family of apps?
Now, here’s where Facebook, Instagram come in the picture. You see those “promoted” posts on these platforms? Developers will have to pay Apple ‘tax’ for advertising on their iOS apps. If you’re wondering what is Apple tax then simply put: most app developers have to pay Apple a commission which Apple charges for using its in-app payment system. Before the change in guidelines, Apple never charged this on in-app advertising. So in a sense a lot of the so-called big advertisers will not feel the hurt. But its the individuals — the so-called influencers —and relatively small players that will feel the pinch. These are users who use the “boost” post feature rather infrequently and now when they do, they end up losing 30% as it goes to Apple. So in a sense they might just stop promoting those posts as it does affect them and in turn Facebook and Instagram. For the record, Meta’s family of apps don’t really use App Store’s in-app purchases system but the likes of Twitter, TikTok and other apps do.
What does Meta and Apple have to say about it?
As expected, Meta isn’ too happy. The two companies rarely see eye to eye on many things. A Meta spokesperson told The Verge that Apple earlier didn’t want to take share of developers’ ad revenue but changed its mind. “Apple continues to evolve its policies to grow their own business while undercutting others in the digital economy.
Apple, on the other hand, feels that this is nothing out of the ordinary. An Apple spokesperson told The Verge in a statement, “For many years now, the App Store guidelines have been clear that the sale of digital goods and services within an app must use In-App Purchase. Boosting, which allows an individual or organisation to pay to increase the reach of a post or profile, is a digital service — so of course In-App Purchase is required. This has always been the case and there are many examples of apps that do it successfully.”
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