How Apple’s New Fees are Impacting Facebook and Instagram Advertisers

Apple’s recent decision to implement a 30% fee on in-app ads purchased through iOS devices has sparked controversy among Facebook and Instagram advertisers. This change will require advertisers to pay an additional fee directly to Apple, unless they choose to make their purchases through desktop browsers on facebook.com or instagram.com. The move, which was originally introduced to U.S. advertisers in February, is now being expanded to all regions.

To circumvent Apple’s extra charges, Meta has introduced new processes on their website to facilitate boosting capabilities. Advertisers can now access the same functionality available on iOS devices by making purchases through desktop PCs. Meta’s Director of Privacy & Fairness Policy, Pedro Pavón, has criticized Apple’s fee structure as anti-competitive, stating that it gives Apple an unfair advantage over competitors and makes pricing competition more challenging.

Pavón’s concerns are echoed by regulators worldwide, with EU investigators and a federal judge in the U.S. leveling charges against Apple for their implementation of the new fees. Despite these challenges, Apple continues to charge advertisers more for in-app ads, creating a dilemma for businesses looking to minimize costs. The ongoing legal battles between Apple and companies like Epic Games highlight the contentious nature of the issue.

Implications for Advertisers

For advertisers purchasing Facebook and Instagram ads through their devices, the new fee structure presents a significant obstacle. In response, Meta has provided guidance on how to avoid paying Apple’s taxes, emphasizing the importance of adapting strategies and utilizing desktop browsers for purchasing ads.

Apple’s new fees are reshaping the landscape for Facebook and Instagram advertisers, forcing businesses to reevaluate their advertising strategies and seek alternative methods to avoid additional costs. As the legal battles and criticisms against Apple continue, advertisers must stay informed and proactive in navigating this evolving landscape.