Apple increases its Facebook and Instagram ad fee by 30% globally

Starting July 1, purchasing ads via an iOS device will incur an additional 30% fee directed to Apple, unless you opt to buy through facebook.com or instagram.com on a desktop platform.

This policy, initially introduced to U.S. advertisers in February, is now being extended globally. Meta has introduced new web-based processes to facilitate ad boosting while circumventing Apple’s surcharges, providing equivalent functionalities available on iOS devices. To avoid the extra fee, advertisers will need to shift to desktop PCs instead of quickly boosting ads in-stream.

Meta’s Director of Privacy & Fairness Policy, Pedro Pavón, criticizes Apple’s expansion of its fee structure to more regions effective July 1st, condemning it as anti-competitive.

According to Pavón, “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. And I’m not the only one who thinks so. Regulators worldwide are siding with app developers and consumers who stand to benefit from more choices and lower fees.”

Pavón adds that EU regulators have already filed charges against Apple for this change, while a U.S. federal judge has criticized Apple for not complying with a court order related to its fee structure.

Currently, the company will increase charges for advertisers purchasing in-app ads. The straightforward solution is to wait until you can use a desktop PC to avoid these additional expenses, although this may not always be feasible for those who need to work on the go. Apple appears to be banking on this constraint, suggesting it is favouring its own interests to some extent.

Apple argues that these companies would not reach their audiences without its platform, justifying its right to impose fees for this access.

Several companies, including Epic Games, the creator of Fortnite, have resisted Apple’s app taxes by taking legal action. Following the court case, Apple made concessions allowing app developers selling to U.S. customers to include links and buttons in their apps, redirecting users to external websites where they can enter credit card details. However, it mandates pop-up security warnings and requires Apple Pay to be an option on these pages. Additionally, while Meta could potentially implement similar measures, this is not a comprehensive solution and currently applies only in the U.S. context.

Source: Social Samosa