Meta passes in-app ‘Apple tax’ to advertisers

Meta plans to capitalize on the discontent among advertisers in its own conflict with Apple regarding in-app purchase fees by announcing its intention to transfer the 30% service charge imposed by Apple to its own customers. Starting later this month, advertisers who wish to promote a post in the Facebook or Instagram iOS app will now be billed through Apple where this additional charge will be applied.

Meta offers an alternative for advertisers to avoid the additional charge imposed by Apple by paying to boost posts from the web on Facebook or Instagram, accessible through both desktop and mobile browsers. However, it recognizes that customers may not perceive this as a convenient option since in-app purchases are the most convenient way to transact on Apple’s devices. Therefore, those who opt for in-app purchases will now incur higher costs.

By passing on the burden of Apple’s commission to advertisers, Meta hopes to garner public support and, ultimately, influence lawmakers and regulators to bring about a change in Apple’s business practices. The current commission rates and the introduction of the ‘core technology fee’ have also faced criticism from companies such as Epic and Spotify.