Meta Platforms Inc. claimed that Apple Inc. was “undercutting others in the digital economy” by altering the conditions of the App Store to take a part of social media advertising revenue.
The recently announced policy change mandates that users and advertisers complete an in-app purchase in order to “boost” postings on applications like TikTok and Instagram from Meta. A business like Meta would lose some of its ad revenue to Apple as the iPhone maker charges a fee of up to 30% on in-app purchases.
After finishing Tuesday at $137.5, Meta’s shares decreased 3.4% during pre-market trading in New York on Wednesday. The stock of the business has dropped 59% for the year to date.
The company Meta, which also owns Facebook and WhatsApp, said in a statement on Tuesday that Apple has evidently changed its mind about taking a cut of developer advertising revenue. We are still dedicated to providing small businesses with easy options to advertise on our applications and expand their brands.
Apple, which is developing its own advertising business, claimed that making boosts an in-app purchase is only an extension of its current regulations and that other apps already adhere to them.
The business stated in a statement that “the App Store criteria have been clear for many years now that the selling of digital goods and services within an app must use in-app purchasing.”
“Boosting,” which enables a person or business to pay to expand the reach of a post or profile, is a digital service, therefore an in-app purchase is obviously necessary. There are numerous instances of apps that accomplish it successfully, and this has always been the case.
TikTok and Twitter Inc., two additional social media platforms that offer the ability to enhance posts, also failed to react right away to requests for comment.
