Facebook and Instagram advertisers need to be aware of a significant change coming their way. Starting next week, a 30% fee will be added to ads purchased via an iOS device, with the money going directly to Apple. This additional charge, first introduced to U.S. advertisers in February, is now being rolled out to all regions. To avoid this fee, advertisers will need to purchase ads through facebook.com or instagram.com on a desktop instead of an iOS device. This change has prompted Meta to implement new processes on the web to enable boosting without incurring Apple’s extra charges.
Pedro Pavón, Meta’s Director of Privacy & Fairness Policy, has criticized Apple’s fee structure, referring to it as an anti-competitive move. He argues that the 30% Apple tax gives the tech giant an unfair advantage over its competitors, making it challenging for them to compete on pricing. Pavón’s concerns are shared by regulators worldwide, with EU investigators already leveling charges against Apple for the change. Even a federal judge in the U.S. has called out Apple’s failure to comply with court orders in relation to its fee structure.
Despite the backlash, Apple defends its position, stating that companies like Facebook and Instagram benefit from accessing their audiences through the Apple platform and, therefore, should be prepared to pay for this convenience. This stance has sparked resistance from several businesses, including Epic Games, the developer of Fortnite, which took legal action against Apple over its app taxes. As a result of the lawsuit, Apple has made some concessions, allowing app makers to include links and buttons in their apps that redirect users to external websites for payment. However, these changes come with restrictions and are currently only applicable in the U.S.
For advertisers purchasing Facebook and Instagram ads through their devices, this fee increase will undoubtedly impact their budgets and strategies. The added costs may prompt advertisers to rethink their approach and consider alternative methods to avoid Apple’s taxes. Meta has provided guidelines on how advertisers can navigate these changes and limit their exposure to the additional fees.
The implementation of Apple’s 30% fee on Facebook and Instagram advertising poses a significant challenge for advertisers. The ongoing debate between tech giants and regulators highlights the complex nature of the digital advertising landscape. Advertisers must stay informed about these developments and adapt their strategies to mitigate the impact of these changes on their campaigns. It remains to be seen how this issue will evolve in the coming months and whether further concessions or adjustments will be made to address the concerns raised by advertisers and industry stakeholders.
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