Meta Inc has gone on the offensive against Apple Inc, criticizing new terms in its App Store for "taking away" some of Meta's advertising revenue and accusing Apple of "undercutting other tech companies in the digital economy," media reports said on Wednesday.
in terms announced this week, Apple requires its users and advertisers to use its "in-app purchase" channel when they buy "promoted" posts in apps like Instagram and Tiktok, in return for a commission of up to 30 percent from Apple.
Under the new terms, for example, an Instagram blogger (iPhone user) who wants to promote a personal post will need to pay Instagram through Apple's "in-app purchase" channel, and Apple will take a cut.
The change means that some advertising revenue will flow from the pockets of social media companies like Meta to Apple.
Meta's social media applications include Facebook, Instagram, Whatsapp and others.
"Apple has apparently changed its mind after previously saying it would not take a share of developers' AD revenue," Meta charged in a statement on Tuesday.
Apple says the requirements in the new terms are simply an extension of its existing strategy. "The terms of the App Store have long been clear that in-app sales of digital goods and services must use an 'in-app purchase' system."
Some social media companies, such as ByteDance and Twitter, did not immediately respond to requests for comment.
It was a long time ago
Meta's feud with Apple has long been over.
Earlier this year, Apple made changes to user privacy on its IOS software, requiring social media companies to obtain users' explicit permission to track their data. And iPhone users are increasingly demanding that apps not track their devices.
Meta says the change prevents advertisers from better targeting users, and Meta expects to lose $10 billion in AD revenue this year.
Meta also criticized Apple for taking a 30% cut. CEO Zuckerberg has said that "when we introduce the revenue sharing rule, it will be less than the 30 percent that Apple and other companies get."
"We remain committed to providing small businesses with an easy way to advertise and grow their business on our apps," he added.
In early October, Zuckerberg said that Apple was the company's main rival when talking about metaverse competition. "Apple likes to build a closed system and Meta wants to keep it open," he said. "There's a battle of ideas."