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Apple and Facebook might be working together

Apple and Facebook might be working together

Since a few years ago, Apple and Facebook have been at conflict. Apple stated at WWDC 2020 that iOS would require apps to ask users to consent to cross-app advertising tracking. Facebook spoke out strongly against Apple’s plans over the following months and forecast income volatility as a result of the changes, but the feature wasn’t introduced until iOS 14.5 was released in April 2021.

Apple and Facebook were exploring launching a subscription service that would provide a platform without advertisements. Additionally, given that Apple receives a cut of all in-app sales, including subscriptions, the deal might have been extremely profitable. Another arrangement that was proposed and ultimately became contentious was Apple receiving a percentage of “boosted posts,” which are posts that are paid to get seen by more people. Small businesses frequently use boosted posts to increase their audience reach, as noted by the Journal, and Facebook has long considered them to be a part of its advertising offering. Apple’s position that boosts should be treated as in-app purchases that are subject to the company’s 30 percent revenue cut was what ultimately caused the problem. Facebook, on the other hand, insisted that those were promotional items that were exempt from Apple’s cut.

According to research company Insider Intelligence, 37% of iPhone users have chosen to allow companies to follow their activities across applications after the changes to user-tracking went into effect in 2021. Since the shift took effect, Facebook (now Meta) has experienced much slower revenue growth, and last quarter, Meta announced the first revenue decrease in the history of the company. We are far away from these conversations because they allegedly took place during 2016 and 2018. While Meta is working hard to establish the Metaverse as a real thing, Apple is making every effort to promote itself as a privacy defender. But for now at least, advertising is the sole significant source of income for Meta, so the business will need to continue adapting to a reality in which most users make use of iOS app tracking protection.

Apple and Facebook might be working together

Apple and Facebook might be working together

Since a few years ago, Apple and Facebook have been at conflict. Apple stated at WWDC 2020 that iOS would require apps to ask users to consent to cross-app advertising tracking. Facebook spoke out strongly against Apple’s plans over the following months and forecast income volatility as a result of the changes, but the feature wasn’t introduced until iOS 14.5 was released in April 2021.

Apple and Facebook were exploring launching a subscription service that would provide a platform without advertisements. Additionally, given that Apple receives a cut of all in-app sales, including subscriptions, the deal might have been extremely profitable. Another arrangement that was proposed and ultimately became contentious was Apple receiving a percentage of “boosted posts,” which are posts that are paid to get seen by more people. Small businesses frequently use boosted posts to increase their audience reach, as noted by the Journal, and Facebook has long considered them to be a part of its advertising offering. Apple’s position that boosts should be treated as in-app purchases that are subject to the company’s 30 percent revenue cut was what ultimately caused the problem. Facebook, on the other hand, insisted that those were promotional items that were exempt from Apple’s cut.

According to research company Insider Intelligence, 37% of iPhone users have chosen to allow companies to follow their activities across applications after the changes to user-tracking went into effect in 2021. Since the shift took effect, Facebook (now Meta) has experienced much slower revenue growth, and last quarter, Meta announced the first revenue decrease in the history of the company. We are far away from these conversations because they allegedly took place during 2016 and 2018. While Meta is working hard to establish the Metaverse as a real thing, Apple is making every effort to promote itself as a privacy defender. But for now at least, advertising is the sole significant source of income for Meta, so the business will need to continue adapting to a reality in which most users make use of iOS app tracking protection.