Apple has released an update to its payment directives on Monday, requiring that applications use the In-App purchase tool for “boosts” and promoted posts, which means Apple will take a 30% cut of sales. This move appears to be another policy aimed squarely at Meta (formerly known as Facebook).
A variety of apps allow users to promote their content for a small fee. Want more people to see your tweets, your dating profile, or that old video game you’re trying to sell? Twitter, Tinder, and eBay will sell you a “boost” to get it higher in the feed. For years, this seemed to fall into a gray area in App Store policies. Apps that sell “virtual goods” are supposed to to use the In-Pay-per-app system, which comes with significant service fees. It’s been true for a long time. But this policy was not always enforced when it came to boosts, and some apps, like Facebook, got away with accepting payments directly and avoiding Apple’s huge fees. Apple declined to comment.
Some applications, including Twitter and Tinder, already use the In-App payment tool for boosts and promoted posts, but not Facebook. Apple would probably Craft a nice chunk of change when he starts enforcing this policy more strictlyalthough Meta may challenge the change. The social media giant is already mixed with a public brawl with Apple over the recent policy changes, and the the adjust in-app payment requirements will probably add fuel to the fire. Another iPhone policy change last year cost Meta billions of dollars in lost advertising revenue, which Apple is now working to gobble up through a number of new advertising projects.
This new update aims to advertising that increases the visibility of social media postsbut there is a carvefor more traditional ad types, so Meta’s broader business model is unaffected by this decision. Jhe policy is an example of Apple’s market power. They control the App Storeand this is the only official way to install your app on iPhones. Apple can charge developers whatever they want as long as they can get away with it. In some places, he can’t get away with it: South Korean law enforcement raided Apple headquarters after persisting iOS overload complaints developers. Meta declined to comment.
The stimulus policy update is part of a broader effort to crack down apps, forcing developers to embrace Apple’s ring and use the In-App payment system or risk being kicked out of the market.
Regulators in other countries, where competition rules are much stricter, have forced Apple to allow apps to use other payment systems that don’t take such a big chunk of revenue. Google has come under scrutiny for similar policies in its Play Store and was even fined $113 million this week for not allowing third-party payments.. Last year, Epic Games won a big lawsuit against Apple after Fortnite was kicked out of the App Store for providing third-party payment options. A judge has ruled that Apple can’t stop app developers from including links to other payment systems.
Apple says it’s take that money just to protect yourself. The company reviews apps for security, privacy and fraud issues, including verification of payment systems. CEO Tim Cook argued that it is expensive to maintain and that a 30% reduction is a reasonable fee as the money is needed to protect consumers which also benefits developers as it creates a market of trust .
apple did invent the App Store. Promoters (and Tim Cook) argue the business should be able to load anything it wanna. But looking at it another way, the App Store is not a singular, regular service, but rather the portal to all other iPhone apps. Critics say 30% is way more than Apple has to pay for app review, and what’s really going on here is a monopoly treading water, charging protection money to anyone who wants to cross the gates of Cupertino.