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Headache because Apple’s new policy “sucks blood”

Facebook’s parent company Meta has criticized Apple for drawing the blood of the digital economy when it changed its App Store policy to capture some of the social network’s ad revenue.

So this week the iPhone maker is asking users and advertisers to make in-app transactions when they pay to “publish” posts on platforms like TikTok and Instagram. Apple will take a commission of up to 30% on every in-app transaction, meaning companies like Meta will lose some of their ad revenue to Apple Home.

“Apple used to say it wouldn’t ‘eat’ developers’ ad revenue, but they apparently changed their minds,” a Meta representative said on Oct. 25.

Apple is building its own advertising business, saying requiring in-app transactions to push posts is just an extension of existing policies that other apps follow.

According to Apple policy, only apps that allow marketers to buy ads and manage media campaigns (such as TV and billboards) are optional. Revenue must be shared with the company.

However, “digital transactions for in-app usage or content experience, including purchases of advertisements displayed within the same app, are subject to the in-app transaction policy”. For example, if an influencer pays Instagram via an iPhone app to increase views of a post, Apple will take a fee from the transaction.

Social media companies have been hit hard by changes to the iOS operating system’s privacy policy, as Apple requires users to be clear about how their personal data is collected. But this revenue-sharing policy is arguably Apple’s most immediate step into the digital advertising industry.

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