Apple's most recent revision to its App Store policies regarding in-app purchases has upset Meta.
For post "boosts," or adverts that appear in the same app they are purchased on, in social networking apps, the revised rule mandates that iOS app developers use Apple's system of in-app purchases. This means that when users use the app to pay to enhance their posts and profiles to a wider audience, Apple receives 30% of the in-app sales made in Meta-owned apps like Facebook or Instagram.
A Meta spokesman told Insider in a statement that "Apple continues to modify its policies to grow their own business while undercutting others in the digital market." "Apple originally stated that it did not take a cut of developer advertising money, but it appears to have now revised its position.
Phil Schiller, who is in charge of running the App Store, testified in the Epic v. Apple trial in May that Apple never took a portion of the advertising money generated by iOS developers.
According to an Apple spokeswoman, the rules for the App Store have "been clear for many years that the selling of digital products and services within an app must use In-App Purchase."
The spokesman explained that since boosting is a digital service, in-app purchases are necessary.
The representative added, "This has always been the case, and there are numerous instances of apps that accomplish it well.
Other apps that use in-app purchases for boosts include Twitter and TikTok.
The App Store update isn't expected to have a significant impact on Meta's revenue, according to conversations Alex Heath had with Meta employees earlier this week for The Verge, but "there is concern about the precedent set and that Apple will eventually require the same rule for Meta's standalone ads manager app," Heath wrote.
According to Eric Seufert, an analyst for the advertising sector, those that purchase boosts for their social networking applications will be more impacted by the new App Store standards because they will have to pay more for the same reach they previously had.
The CEO of Meta, Mark Zuckerberg, addressed some of Apple's recent adjustments during the company's earnings call on Wednesday, including its most recent App Store policy language regarding boosted performance.
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