Apple is set to extend its 30% fee for Instagram and Facebook ads to more regions

In a significant update affecting advertisers on Facebook and Instagram, Apple is set to extend its 30% fee on in-app purchases to all regions starting July 1st, 2024. The move, initially introduced in the U.S. earlier this year, has sparked concerns among digital marketers and app developers alike, prompting Meta, the parent company of Facebook and Instagram, to adapt its advertising processes to circumvent Apple’s additional charges.

Meta’s latest strategy involves redirecting advertisers to desktop platforms, such as facebook.com or instagram.com, where ads can be purchased without incurring Apple’s levy. The shift allows advertisers to continue utilizing familiar functionalities while avoiding the heightened costs associated with iOS transactions. Pedro Pavón, Meta’s Director of Privacy & Fairness Policy, has criticized Apple’s fee structure as anti-competitive, arguing that it places an undue financial burden on advertisers and limits market competition.

“The 30% Apple tax gives them an unfair advantage over competitors, making it harder for them to compete on pricing,” Pavón remarked. “Regulators worldwide are increasingly siding with app developers and consumers who stand to benefit from more choices and lower fees.”

In response to escalating regulatory scrutiny, Apple’s stance defends the fee as justified by its role in providing access to vast user bases through its platform. This position has sparked legal challenges from various quarters, including Epic Games, known for its legal battles with Apple over app store policies. The outcome of these legal disputes has led Apple to introduce concessions, such as allowing app makers to include external payment options within their apps for U.S. customers, albeit with certain restrictions and security measures.

For advertisers navigating this evolving landscape, Meta has outlined alternative strategies to mitigate the impact of Apple’s fees. These include leveraging desktop interfaces for ad purchases and exploring compliant ways to manage ad spend across different platforms. However, the practicality of these solutions may vary, especially for advertisers reliant on mobile devices for real-time campaign management.

As the global rollout of Apple’s fee structure approaches, advertisers are advised to review and adjust their ad purchasing strategies accordingly. Meta continues to advocate for a fair and competitive digital advertising environment amidst ongoing regulatory challenges and market shifts.