Recently, Facebook and Instagram advertisers were hit with a new fee that requires them to pay an extra 30% when purchasing ads through an iOS device. This change, which was first introduced to U.S. advertisers in February, is now being expanded to all advertisers worldwide. The fee goes directly to Apple, and if advertisers want to avoid this additional cost, they must purchase ads through the desktop versions of Facebook and Instagram instead.
Meta, the parent company of Facebook and Instagram, has implemented new processes on their websites to facilitate boosting ads without incurring Apple’s extra charges. These new processes offer the same functionality as what is available on iOS devices. According to Meta’s Director of Privacy & Fairness Policy, Pedro Pavón, Apple’s new fee structure is seen as anti-competitive and unfair to advertisers and consumers. Pavón criticizes Apple for giving themselves an advantage over competitors and making it difficult for others to compete on pricing.
Apple’s new fee structure has faced criticism from regulators worldwide, with EU investigators already leveling charges against the tech giant. A federal judge in the U.S. has also criticized Apple for failing to comply with a court order related to their fee structure. Despite the pushback, Apple continues to charge advertisers more for in-app ad purchases. This has led to frustration among businesses, with many, including Epic Games, taking legal action against Apple for their app taxes.
For advertisers purchasing Facebook and Instagram ads through their devices, this new fee structure poses a challenge. The simple solution is to switch to a desktop PC to avoid the extra costs. However, this may not always be feasible for those working on the go. Apple’s strategy seems to favor their own interests, even at the expense of advertisers and consumers.
Meta has provided guidance on how advertisers can avoid paying Apple’s taxes by utilizing alternative methods. They have also suggested updating the approach to purchasing ads on their platforms to circumvent the additional fees imposed by Apple. While Meta has implemented some solutions for U.S. customers, these measures may not be sufficient for advertisers globally.
Apple’s 30% fee on Facebook and Instagram advertisers purchasing ads through iOS devices has sparked controversy and legal challenges. Advertisers are urged to adjust their strategies to avoid the extra costs associated with in-app purchases. While Meta has provided some guidance on bypassing Apple’s taxes, the ongoing battle between tech companies and regulators highlights the complex dynamics of the digital advertising industry.