Apple Wanted Facebook’s Revenue

Published on 25 Aug 2022

Apple, Facebook, Revenue

Apple and Meta may not be the greatest of friends right now. Still, according to The Wall Street Journal, Apple once negotiated with the social network startup about how it might generate more revenue from its App Store presence.

Apple contended that it was entitled to a part of Facebook's advertising income. According to the WSJ, the advertising in issue was boosted posts, which allowed users to pay to have their postings reach more people. Apple reportedly said boosted posts are in-app purchases, from which it notoriously receives a cut; Meta countered they are advertisements, from which Apple did not receive a cut. It seems that Meta prevailed.

See also: The Best Sentiment Analysis Tools for Social Media

Apple’s Demands

Apple not only wants a portion of Meta's increased revenues. Matt Mullenweg, the CEO of Automattic, the business that owns Tumblr, claims that Apple rejected Tumblr's newly announced boost-like function unless the firm made them available as in-app purchases.

WSJ reports that Apple and Meta also discussed a Facebook subscription that would eliminate advertisements from the social network. This would have also been advantageous for Apple since it would have been able to generate income from subscriptions sold inside the app. The 2 companies were incapable of agreeing on the proposed concepts. The debates "mostly" occurred between 2016 and 2018.

Apple emphasizes privacy as a fundamental distinction for its products, but Meta depends primarily on advertising to sustain its business. And Apple's implementation of the "Ask App not to Track" prompt as part of iOS 14.5 in 2021 has had a substantial effect on Meta, losing the firm $10 billion in advertising income in 2021. Apple and Meta did not reply to a request for a statement immediately.

Apple’s Subsequent Action

The WSJ said that in 2018, Meta officials contemplated suspending third-party data acquisition (such as that used for the company's targeted advertising). Still, CEO Mark Zuckerberg "decided instead to retain the majority of its data-collecting policies in place."


Featured image: Apple


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