Facebook and Instagram advertisers using iOS devices will now have to pay an additional 30% fee directly to Apple when purchasing ads. This change was first introduced to U.S. advertisers in February and is now expanding to all regions. To avoid these extra charges, advertisers can opt to purchase ads through facebook.com or instagram.com on a desktop instead of an iOS device.
Meta’s Director of Privacy & Fairness Policy, Pedro Pavón, has criticized Apple’s new fee structure as anti-competitive. According to Pavón, the 30% Apple tax gives them an unfair advantage over competitors, making it challenging for them to compete on pricing. This move has garnered support from regulators worldwide, app developers, and consumers who value more choices and lower fees. EU investigators have already raised charges against Apple, while a federal judge in the U.S. has criticized Apple for not complying with a court order regarding its fee structure.
While Apple continues to enforce the additional fees for in-app advertisements, advertisers can avoid these costs by switching to a desktop PC for ad purchases. However, this option may not always be feasible for those who work on the go. Apple’s strategy seems to leverage the convenience of in-app purchases to benefit their own agenda. Epic Games, the creator of Fortnite, has previously taken legal action against Apple’s app taxes, resulting in some concessions allowing app makers to include links and buttons that redirect users to external websites for payment.
Implications for Facebook and Instagram Advertisers
For Facebook and Instagram advertisers, it is essential to update their approach to ad purchases to avoid Apple’s taxes. While Meta has provided guidelines on how to circumvent these fees, the issue remains a concern for advertisers worldwide. By understanding the impact of Apple’s fee structure and exploring alternative methods of ad purchase, advertisers can navigate this challenge effectively.
The implementation of Apple’s 30% fee on in-app ad purchases has sparked debate and criticism from various stakeholders. Advertisers using Facebook and Instagram now face additional costs that can impact their advertising strategies. By staying informed, exploring alternatives, and adapting their purchasing methods, advertisers can mitigate the impact of Apple’s fees and continue to reach their target audiences effectively.
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