Meta's Intervention in "How to Avoid Apple Fees"... What's the Reason?

Meta, the parent company of Facebook and Instagram, has struck a blow at Apple.

On the 15th (local time), The Wall Street Journal (WSJ) reported that Meta presented a way for advertisers to avoid paying the 30% service fee to Apple. This has drawn attention as another big tech company has suggested a kind of tip that could reduce Apple's revenue.

[Image source=Yonhap News]

The method is simple. According to the tip shared by Meta, advertisers should not buy 'Boost Posts' through the iPhone and iPad apps but instead purchase them on Facebook and Instagram’s websites. Boost Posts are a type of paid advertisement that advertisers can use on Facebook and Instagram.

Boost ads are a significant source of revenue for Meta, generating billions of dollars annually. Starting at the end of this month, Meta plans to charge advertisers an additional 30% fee for purchasing Boost Posts through the iPhone and iPad apps. This is due to a pricing policy change announced by Apple at the end of 2022. The additional fee goes to Apple.

The problem is that charging an additional 30% fee for Apple could increase costs for advertisers, potentially shrinking Meta’s revenue business. For this reason, Meta appears to be encouraging advertisers to make payments through Facebook and Instagram websites instead of the Apple App Store.

The conflict between Meta and Apple over Boost Posts is expected to continue. Meta and Apple have been at odds over Boost Posts for several years.

Meta argues that since Boost Posts are advertisements widely used by small businesses, additional fees should not be applied, but Apple insists that since purchases are made through the App Store, they should be considered in-app purchases subject to up to a 30% fee.