Facebook and Instagram advertisers using iOS devices are facing a new challenge starting next week. Apple has implemented a 30% fee for ads purchased via iOS devices, which will directly impact advertisers unless they choose to purchase ads through facebook.com or instagram.com on desktop instead. This change, which was first introduced to U.S. advertisers in February, is now expanding to all advertisers in all regions.
Meta’s Response
Meta, the parent company of Facebook and Instagram, has responded to this change by implementing new processes on the web to facilitate boosting without incurring Apple’s extra charges. Advertisers will have access to all the same functionality available on iOS devices, but they will need to switch to a desktop PC to avoid paying the additional fee. Meta’s Director of Privacy & Fairness Policy, Pedro Pavón, has criticized Apple’s new fee structure as anti-competitive, stating that it gives Apple an unfair advantage over competitors by making it harder for them to compete on pricing.
Pavón’s concerns are echoed by regulators worldwide, as EU investigators have already leveled charges against Apple for the change. Additionally, a federal judge in the U.S. has criticized Apple for failing to comply with a court order related to its fee structure. Despite these criticisms, Apple is moving forward with charging advertisers more for in-app ads. Advertisers who wish to avoid the extra costs will have to wait until they can access a desktop PC, although this may not always be a feasible option for those who work on the go.
Many businesses, including Epic Games, the maker of Fortnite, have pushed back against Apple’s app taxes. Epic Games took Apple to court over its fees, leading to concessions that now allow app makers selling to U.S. customers to include links and buttons in their apps that redirect users to an external website for payment. However, Apple imposes pop-up security warnings and requires that Apple Pay be listed as an option on these external pages. While Meta could potentially implement similar solutions, these changes are limited and only apply to the U.S. market at this time.
For advertisers purchasing Facebook and Instagram ads through their devices, it is essential to update their approach in response to Apple’s new fee structure. Meta has provided guidance on how to avoid paying Apple’s taxes, but the reality is that advertisers will need to adapt to these changes and potentially incur higher costs unless they shift their purchasing behavior. As the situation continues to evolve, advertisers must stay informed and adjust their strategies accordingly to navigate the impact of Apple’s new 30% fee.
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